14th March 2018

MiFID II: added value for the customer

The European Markets in Financial Instruments Directive (MiFID II) entered into force on 3 January 2018. Claude Hirtzig, Head of Department and Senior Vice President at Spuerkeess, spoke to us about the importance of this directive in terms of transparency and investor protection.

What is MiFID II?

MiFID II reinforces current laws by offering increased investor protection. This protection results in greater transparency regarding financial products and pricing. MiFID II also imposes stronger corporate governance and internal controls. Lastly, the European market is now governed by new rules of vigilance and control, providing a more secure framework for investors.

What does MiFID II mean in practical terms?

To determine customer investor profiles with greater detail, Spuerkeess has developed a more in-depth investor profile test for a better assessment of our customers' personal situation and attitude towards risk. This way, Spuerkeess can define the most suitable financial instruments as well as the target market. Under MiFID II, each financial product must be assigned to a certain type of investor and we must verify that the chosen instruments match the customer’s profile.

We also monitor our customer portfolios on a daily basis for enhanced risk tracking. Information about our services and the suggested financial instruments is even more detailed than before, and any investment advice is supplemented by a customer portfolio suitability report. Lastly and in accordance with regulations, we report all transactions in financial instruments to the regulator.    

Spuerkeess has developed a more in-depth investor profile test for a better assessment of their customers' personal situation and attitude towards risk.

Claude HIRTZIG, Senior Vice President & Head of Department Retail and Private Banking

What solutions has Spuerkeess put in place to comply with the directive?

Following the implementation of MiFID II, Spuerkeess wanted to transform this directive into real added value for customers and developed new investment advisory services, particularly Activinvest and Activinvest Plus.

Both of these offers differ, owing their investment universe. With Activinvest, customers receive recommendations on investment funds and ETFs. With Activinvest Plus, customers also get advice on a broader universe of securities. However, both options grant support from our specialists and allow the customers to make informed investment decisions.

To ensure transparency and professional supervision of the customer portfolio, we have developed the “Advice Session”. During an interview with the expert, customers use an electronic support tool to view the performance of their portfolio, the breakdown by asset class, and especially whether their portfolio’s risk is in line with their investor profile. The Advice Session allows customers to participate in the optimisation of their portfolio and observe the changes made according to the asset class.

Thus, customers benefit from a professional service with full transparency.

Spuerkeess's Private Banking Highly qualified and experienced Private Banking advisors guarantee a tailored and individual advice

You might also like