Non-residents › Conditions of Providing Investment Services Will Change from the 1st of November
Conditions of Providing Investment Services Will Change from the 1st of November
02.11.2007
From the 1st of November, new conditions of providing investment services will become effective in Danske Bank Group, including AS Sampo Pank. These amendments derive from MiFID (the EU’s Markets in Financial Instruments Directive), which obliges the providers of investment services to assess more thoroughly the suitability of investment services to clients. The requirements stipulated in the directive will become mandatory for the providers of investment services operating in the Estonian market after the relevant amendments to local laws have been made in accordance with MiFID. On the 24th of October, Riigikogu passed the respective act, which will take effect 10 days after it has been published in Riigi Teataja (the State Gazette).MiFID thoroughly regulates the content and scope of providing investment services, as well as issues relating to the licenses of investment firms and the organizers of the regulated securities market and aspects associated with supervision.
With the aim of protecting the investor the directive stipulates different client categories to be applied in providing investment services.
Pursuant to MiFID providers of investment services are obliged to provide the client with considerably more information about different investment services, types of securities, as well as the related fees and expenses.
MiFID entails an obligation on the service provider to determine the scope of the client’s knowledge of and experience in securities market issues, to assess the client’s financial situation and investment objectives, before providing an investment service to the client. The provider of investment services has to choose the most suitable product to the client on the basis of this assessment.
Implementation of MiFID rules through Estonian laws will not entail any additional obligations on clients. More detailed information about MiFID can be obtained from the bank officer providing investment services.