Requirement (MIFID)
Article 30 Information about the investment firm and its services for retail clients and potential retail clients
Requirements MIFID - DIRECTIVE 2006/73/EC
Description
Description
1. Member States shall require investment firms to provide
retail clients or potential retail clients with the following general
information, where relevant:
(a) the name and address of the investment firm, and the
contact details necessary to enable clients to communicate
effectively with the firm;
(b) the languages in which the client may communicate with
the investment firm, and receive documents and other
information from the firm;
(c) the methods of communication to be used between the
investment firm and the client including, where relevant,
those for the sending and reception of orders;
(d) a statement of the fact that the investment firm is
authorised and the name and contact address of the
competent authority that has authorised it;
(e) where the investment firm is acting through a tied agent, a
statement of this fact specifying the Member State in which
that agent is registered;
(f) the nature, frequency and timing of the reports on the
performance of the service to be provided by the
investment firm to the client in accordance with
Article 19(8) of Directive 2004/39/EC;
(g) if the investment firm holds client financial instruments or
client funds, a summary description of the steps which it
takes to ensure their protection, including summary details
of any relevant investor compensation or deposit guarantee
scheme which applies to the firm by virtue of its activities
in a Member State;
(h) a description, which may be provided in summary form, of
the conflicts of interest policy maintained by the firm in
accordance with Article 22;
(i) at any time that the client requests it, further details of that
conflicts of interest policy in a durable medium or by
means of a website (where that does not constitute a
durable medium) provided that the conditions specified in
Article 3(2) are satisfied.
2. Member States shall ensure that, when providing the service
of portfolio management, investment firms establish an appropriate
method of evaluation and comparison such as a
meaningful benchmark, based on the investment objectives of
the client and the types of financial instruments included in the
client portfolio, so as to enable the client for whom the service is
provided to assess the firm's performance.
3. Member States shall require that where investment firms
propose to provide portfolio management services to a retail
client or potential retail client, they provide the client, in addition
to the information required under paragraph 1, with such of the
following information as is applicable:
(a) information on the method and frequency of valuation of
the financial instruments in the client portfolio;
(b) details of any delegation of the discretionary management
of all or part of the financial instruments or funds in the
client portfolio;
(c) a specification of any benchmark against which the
performance of the client portfolio will be compared;
(d) the types of financial instrument that may be included in
the client portfolio and types of transaction that may be
carried out in such instruments, including any limits;
(e) the management objectives, the level of risk to be reflected
in the manager's exercise of discretion, and any specific
constraints on that discretion.
Comment
Applies to first indent of Article 19(3) of Directive 2004/39/EC