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MIFID II
MiFID II – The Directive
MiFID II (effective from January 3, 2018) aims to develop a single market for financial services in Europe, ensuring transparency and investor protection. It includes various provisions that, inspired by the duty to act in the best interest of the client, guarantee accurate information for investors, address potential conflicts of interest, and require adequate profiling of investors.
Consult the text of the MiFID II directive (Directive 2014/65/EU). Below are some of the main changes MiFID II has introduced regarding the provision of investment services.
Consulting
MiFID II significantly innovates the field by introducing the new concept of independent advice. Investment firms are therefore required to specify to clients whether:
- the advice is provided on an independent basis or not;
- the advice is based on a broad or more limited analysis of the various types of financial instruments;
- the firm will provide clients with periodic assessments of the suitability of the recommended financial instruments.
At the core of the consulting service remains the fundamental safeguard for the investor, which is represented by the suitability assessment. This assessment is primarily based on collecting a range of information about the client:
- their knowledge and experience in investment matters regarding the specific type of product or service;
- their financial situation, including the ability to bear potential losses;
- their investment objectives, including risk tolerance.
Product Governance
MiFID II introduces a series of organizational requirements applied to the relationships between producers and distributors of financial instruments. Producers are required to define and implement an approval process for each financial instrument before its marketing or distribution to clients. Distributors, in turn, must contribute to the implementation of appropriate distribution strategies in relation to the characteristics of the target market.
For further details, you can review the following documents:
Quantitative Report: top 5 broker / top 5 venue
In accordance with the regulatory provisions on Best Execution, as dictated by Article 27 of Directive 2014/65/EU of May 15, 2014 (MiFID II), and implemented by Article 47 of Intermediaries Regulation No. 20307/2018, the following data is published regarding the orders executed by execution venues.
For the period from January 1 to December 31 2023, the document is published indicating, for each class of financial instruments:
- the top five execution venues on which the Bank directly executes client orders;
- the top five investment firms (known as Brokers) used by the Bank.
For each Venue/Broker, the traded volumes and the number of orders executed are reported as a percentage of the total for the class. In addition to the quantitative information, there is a qualitative section that provides specific qualitative details regarding compliance with the criteria established to ensure Best Execution, for both retail and professional clients.
Report on Financial Transaction Execution Quality
The documents contained in this section are prepared pursuant to Article 27(3) of Directive 2014/65/EU and Delegated Regulation (EU) 2017/575, and are published in accordance with the provisions of paragraph 1.5 “Monitoring and Verification of the Quality and Correct Application of the Execution and Order Transmission Strategy” of the Execution Policy, as applicable from time to time.
These reports are intended for monitoring and verifying the quality of execution offered on financial instruments executed on the Bank’s own account. The reports, produced for each financial instrument and each trading day, are published quarterly with reference to the data for the preceding quarter and are divided into the following tables.
LEGEND
- Table 1 – Identification Information for Execution Venue Types
- Table 2 – Identification Information for Financial Instrument Types
- Table 3 – Price Information by Execution Hour
- Table 4 – Information on Average, Maximum, and Minimum Prices
- Table 5 – Information on Costs, to be Completed Pursuant to Article 5 of the Regulation
- Table 6 – Quantitative Information on Execution Probability
- Table 9 – Information on Execution and Quotation Timeliness
Report 2019
- 03273_TAB01_IT0000300746_EUR_2019-04-18
- 03273_TAB01_IT0001005229_EUR_2019-05-23
- 03273_TAB01_IT0003926661_EUR_2019-06-07
- 03273_TAB02_IT0000300746_EUR_2019-04-18
- 03273_TAB02_IT0001005229_EUR_2019-05-23
- 03273_TAB02_IT0003926661_EUR_2019-06-07
- 03273_TAB03_IT0000300746_EUR_2019-04-18
- 03273_TAB03_IT0001005229_EUR_2019-05-23
- 03273_TAB03_IT0003926661_EUR_2019-06-07
- 03273_TAB04_IT0000300746_EUR_2019-04-18
- 03273_TAB04_IT0001005229_EUR_2019-05-23
- 03273_TAB04_IT0003926661_EUR_2019-06-07
- 03273_TAB05_IT0000300746_EUR_2019-04-18
- 03273_TAB05_IT0001005229_EUR_2019-05-23
- 03273_TAB05_IT0003926661_EUR_2019-06-07
- 03273_TAB06_IT0000300746_EUR_2019-04-18
- 03273_TAB06_IT0001005229_EUR_2019-05-23
- 03273_TAB06_IT0003926661_EUR_2019-06-07
- 03273_TAB09_IT0000300746_EUR_2019-04-18
- 03273_TAB09_IT0001005229_EUR_2019-05-23
- 03273_TAB09_IT0003926661_EUR_2019-06-07
For any clarifications and further details, please visit the branches of SOLUTION BANK.
