Background information to the MiFID
MiFID, the Markets in Financial Instruments Directive that was adopted back in 2004, is the centrepiece of the Financial Services Action Plans (FSAP) of the European Commission and a package of measures comprising a total of 42 proposed bills aimed at creating an integrated financial market in the EU. The directive replaces the Investment Services Directive of 1993, which itself laid the foundation for many provisions of the Wertpapierhandelsgesetz, Germany’s Securities Trading Act, and hence defined the supervisory framework for securities trading in Germany.
The MiFID rules are binding from 1 November 2007.
The MiFID essentially has the following objectives:
- The transparency and integrity of the financial markets
- Protection, especially of small investors
- Harmonisation of the supervision of capital markets in the EU
The MiFID regulations are of relevance for the following transactions that clients can conduct with Westdeutsche ImmobilienBank AG:
| The procurement or sale of financial instructions on the account of Westdeutsche ImmobilienBank AG as a service for clients. (own-account trading). | - Financial futures contracts (swaps, swaptions, caps and floors) with borrowing clients for hedging purposes |
| The provision of a recommendation by Westdeutsche ImmobilienBank AG to clients or their representatives relating to transactions with particular financial instruments. This is possible if the recommendation is based on a prior review of the client’s financial position and experience. The suitability of the financial instrument for the client is also reviewed and documented (investment advice). | - Extensive advice and clarification will be provided by investment advisors of the Treasury Department of Westdeutsche ImmobilienBank AG. Individual documentation of investment advice will be prepared. |
The MiFID distinguishes between three classes of client:
- Retail clients
- Professional clients
- Eligible counterparties
Westdeutsche ImmobilienBank AG has a statutory duty to categorize each client of the bank into one of the client categories, i.e. to classify them, before performing any investment or ancillary investment services.
Which clients are to be categorized how is laid down in law, but according to the MiFID clients of the bank have a number of reclassification options, i.e. they can, for instance, request or apply to be given a higher level of protection.
All clients of the bank are informed of the MiFID classification in writing.
The general principle, however, is that there is a different level of protection for each client group.
If you have any further questions on this or object to your classification, please contact mifid@westimmobank.com
Reporting Duties
Westdeutsche ImmobilienBank will report to each client in a suitable form on the services provided for him/her. Again, the requirements differ according to the classification.
When the MiFID enters into force on 1 November 2007, the following principles for investment services and ancillary investment services of Westdeutsche ImmobilienBank AG will apply for clients of the bank. Please find further informations in the attached document.
Client Information - Services in Financial Instruments
Complaints Management
Should there be conflicts of interest that you do not consider to have been satisfactorily resolved by the staff of Westdeutsche ImmobilienBank AG, please set these out in writing and forward them to the following address:
Westdeutsche ImmobilienBank AG, Abt. 1-211 Beschwerdemanagement, Große Bleiche 54, D-55116 Mainz, Germany