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3.1

INVESTMENT SERVICES ON AN INDEPENDENT BASIS

MiFID II

3.1.1
SERVICES ON AN INDEPENDENT BASIS

MiFID II

Based on MiFID II, investment companies are obliged to choose the manner through which they shall offer their investment services, either on an Independent basis or not.

At HellasFin we have made our choice to continue to offer our investment services exclusively on an independent basis.

3.1.2
WHAT DOES SERVICES ON AN INDEPENDENT BASIS MEAN

MiFID II

  • Appropriate evaluation on a wide spectrum of investment products
  • Appropriate assessment of different, in terms of type and issuer, investment products
  • No restriction on products from specific issuers
  • No acceptance of payments or commission from third parties

3.1.3 WHAT IS MiFID II

 

MiFID II is a legislative framework for all investment companies across the EU. It is the amended version of MiFID I seeking to reword some main points, concerning investment services, which had not been adequately clarified within MiFID I.

An important factor in shaping MiFID II was the advent of the economic crisis.

The new normative framework comprises:

  • the 2014/65/ΕC Directive (MiFID II)
  • the (ΕΕ) 600/2014 Regulation (MiFIR)

 

IMPLEMENTATION

The implementation of MiFID II and MiFIR began in 2014 with its incorporation into the respective European legislation and its publication on the EU webpage.

The respective law (4514/2018) was then voted into law by the Greek Parliament.

The implementation of MiFID II and MiFIR began on the 3-1-2018.

 

TIMETABLE IMPLEMENTATION

Mifid II timeline

3.1.4 WHAT CHANGES IN MiFID II – HOW DO WE IMPLEMENT IT

 

IMPORTANT POINTS OF CHANGE IN MiFID II

  1. Assessment of product suitability
  2. Provision of investment advice
  3. Portfolio management
  4. Optimal execution
  5. Informing and updating of investors
  6. Reporting to overseeing authorities
  7. Removal of inducements/changes to how investors are billed

 

HOW HellasFin IS IMPLEMENTING MiFID II

1. Product suitability assessment

  • Definition of investment profile per risk level.
  • Matching suitable financial instruments to each investment profile.
  • Constant monitoring of financial instruments.

2. Provision of investment advice

  • Enhancing the depth of investment proposals to the Investor.
  • Allowing for the inclusion of Investor’s specific terms within the framework.

 

3. Portfolio management

  • Improving the quality of the investment process.
  • Allowing for the inclusion of Investor’s specific terms within the framework.

4. Optimal execution

  • Reporting of optimal execution for the investor if required.

5. Informing and updating of investors

  • Detailed briefing prior to contract.
  • Regular detailed reports.
  • Enhancement of IT systems and automated updating.
  • Cost analysis on annual basis.

6. Reporting to overseeing authorities

  • Analytical disclosures.

7. Removal of inducements/changes to how investors are billed

  • Decision by the administration to maintain/reduce investor’s total cost.

3.1.5 THE NEW INVESTMENT PROFILES

 

 1.

low risk profile

2.

medium risk profile

3.

medioum risk profile

 

4.

high risk profile

5.

high risk profile

6.

high risk profile

3.1.6 IMPORTANT ADVANTAGES AND NOTES

 

  • Reinforcement of Investor Protection
  • Enhancement of Service Quality
  • Complete Transparency
  • Reduction of Corporate Risks

 

  • There shall be no increase in the total cost of investment services provided by HellasFin.
  • There shall be no extra costs incurred to cover the new and extensive obligations incumbent on HellasFin in the context of providing investment services in accordance with MiFID II.