Markets in Financial Instruments Directive (MiFID)

The revised Markets in Financial Instruments Directive (MiFID) and new Regulation on Markets in Financial Instruments (MiFIR) come into effect 3rd of January 2018, and represents a major overhaul and extension of the existing MiFID requirements (from 2007).

The revised MiFID and the new MiFIR are commonly referred to as MiFID II.  MiFID II compliance is a prerequisite for a licence to operate investment services within the European Union.

MiFID II mainly impacts the disclosure of information to customers, product governance rules, inducement regime, execution rules, pre-trade and post-trade transparency rules, transaction reporting, and trading obligations.

Nordea already had high standards of ‘customer handling’ in the Nordic countries, nevertheless procedures and practices have been adjusted to the new rules. These rules apply to both personal and corporate customers.

Nordea will endeavor to:

• Classify all our customers who receive investment services from us;
• Assess the suitability of a service for our customers;
• Provide our customers with best execution when executing their orders;
• Provide our customers with a summary of our conflict of interest policy.