MiFID

Effective from November 2007, Swedbank’s investment services are conducted in accordance with MiFID, a new law affecting all securities trading in all EU and EEA countries. The Abbreviation stands for “Markets in Financial Instruments Directive”. The law affects the securities markets, regulating trade in securities such as shares and mutual fund units.

The principal purpose is to:
-reinforce consumer protection in the securities market by increasing the obligation for banks and other players in the securities market to provide information on the nature of financial instruments and the risks associated with them
-increase transparency in securities trading operations
-harmonize regulations throughout the EU, thereby increasing competition and efficiency in the securities market within the EU.

Products are divided between those that are considered complicated and those that are considered uncomplicated in terms of how difficult they are for customers to understand. Purely derivative instruments are always classed as complicated.

MiFID applies to all customer categories within the bank's securities operations, both private individuals and companies. These are divided into three different categories: non-professional, professional and peers. The basic idea is that non-professional customers should receive the strongest consumer protection.

Since MiFID is an EU directive implemented through national legislation, please see the link to each country's local site on the right hand side for more information.