MiFID is short for Markets in Financial Instruments Directive, which takes effect on 1 November 2007.
MiFID lays down guidelines for the entire EU about trading in and advisory services about financial instruments and foreign currency products.
The MiFID rules provide for advisory services on investments to be based on the client’s requirements and financial situation, and on the risk and complexity of the investment products. The EU rules divide clients into three categories: retail clients, professional clients and eligible counterparties. Retail clients enjoy the highest degree of protection. This category comprises most of the Group’s clients.
New systems
The Danske Bank Group began its preparations for MiFID two years ago and has spent more than DKr150m on the project hereof new systems in order to ensure the highest possible efficiency when we apply the new rules.
The Bank’s advisers have strengthened their competencies through training, and the Group provides further training to its employees to enable them to meet the client's need for advice.
We expect that our clients will feel that they receive more thorough advice and better documentation after the introduction of the MiFID rules and that this will, over time, increase competition in the sector – also across borders.
Last updated on November 9, 2007