What is MiFID
MiFID (Markets in Financial Instruments Directive) is the European Directive concerning the market of financial instruments and products, which sets down a uniform legal framework for banks, brokerage houses as well as other brokerage operators in the European Union as well as in Iceland, Norway and Lichtenstein.
The MiFID Directive aims to enhance and harmonise Client protection in banks, increasing consistency and transparency of the operation of banks as well as increasing competitiveness on the financial instruments market.
According to MiFID companies, which offer investment services, are required to:
- Act in the Client's best interest,
- Offer financial instruments and products as well as investment services, which are appropriate for the Clients' knowledge and experience,
- Deliver to Client explicit and not misleading information about products and risks connected with investing in financial instruments.
By 16 June 2010 all banks in Poland are required to adapt their activity to regulations, which implement the MiFID Directive in the Polish legal system. In meeting its obligations Bank Millennium concludes with Clients agreements on provision of financial services, after previously assessing appropriateness of these products and services from the point of view of the Client's knowledge and experience as well inherent investment risk.
Information about the rights of Clients and obligations of the Bank in connection with application by the Bank of MiFID requirements (i.a. rules of Client classification, assessment of appropriateness of financial instruments and products given the Clients' knowledge and experience, as well as basic information about the Bank and ways of communicating with the Bank) is in the "Information brochure about MiFID requirements for Clients of Bank Millennium S.A."