The Community "Markets in Financial Instruments Directive" (MIFID) of April 21, 2004, which takes effect on November 1, 2007, brings significant changes in the rights and protections of investors in financial services. This document includes information on the rules regarding the main protections brought to the customers, as well as the activities covered by these provisions.
The MIFID provisions corresponding to the two directives (2004/39/CE and 2006/73/CE) were transposed by the National Securities Commission (CNVM) into Regulation no. 32/2006 on financial investment services, Regulation CNVM no. 2/2006 on regulated markets and alternative trading systems and Regulation no. 31/2006 completing the CNVM regulations in view of implementing some provisions of the European directives. The provisions regarding the company object and the definition of the financial instruments are included in the Government Emergency Ordinance no. 99/2006 on credit institutions and capital adequacy, approved and amended by Law no. 227/2007.
According to MIFID, the protection level of those who perform operations on the financial market was defined (more or less detailed information) depending on their level of financial knowledge, and the following three classes of customers were established, according to the decreasing order of protection:
- retail customer ;
- professional customer ;
- eligible counterparty.
In addition, we wish to inform you on the fact that a high protection level:
- requires us to exchange a larger volume of information with you;
- may consequently lengthen the trading process.
Nevertheless, while complying with the legal requirements, we do our best to make the information, consulting and trading procedures as accessible and fast as possible. We would also like to point out that the protections arising from MIFID will not be provided to you for the activities below when ensured by an entity outside the European Economic Space.
For a better understanding of the provisions regarding the class attributed to you, we propose a few needful definitions.
This document and any other subsequent document referring to the regulations under MIFID cover the activities which may be performed by BRD, in compliance with its object:
