18 January 2019
MiFID II - Changes to our investment services
In January 2018 changes were made to our investment services to improve our services and to comply with the requirements imposed on us by the “Markets in Financial Instruments Directive” (MiFID). You can read about what has changed here.
What is MiFID II?
The new European regulations governing investment services (‘MiFID II’), which became effective on 3 January 2018, are a revision of the MiFID I regulations, which date from 2007.
MiFID II retains the same principles, while refining them in a number of areas. The financial crisis threw the spotlight on the lack of transparency and the complexity of the financial markets. This was the starting point for MiFID II, which provides for better investor protection and has been adapted to a new, more competitive market structure.
· Febelfin – Belgian Financial Sector Federation
On 3 January 2018 the Special Regulations for Trading in Financial Instruments, Savings and Investment-linked insurance (SRTFI) were amended. The new version of these regulations is easier to read and has been adapted in line with MiFID II.
It is important that investors are given a good insight into the costs of their investments. Here we are referring both to the costs of our investment service and those of other parties, such as financial instrument or investment product developers. We are happy to provide this information, prior to the service or transaction and afterwards by means of an annual costs and charges statement.
Information about the costs of investments can be obtained via the following channels:
- Charges: An overview of the charges applicable to investments can be found in the Charges applied to the main securities transactions
- Product documentation (KIID): Costs that you have to pay to other parties, such as financial instrument product developers, can be found in the product documentation, which we will go through with you during the investment interview.
- What will it cost? The overview of costs and charges for financial instruments will give you a better insight in advance into the one-off and ongoing costs associated with buying and selling investment products and holding them in a portfolio. Examples can be found in the Cost estimation for financial instruments transactions.
- What did it cost? Retrospectively, your annual costs and charges statement will provide you with a detailed insight into what you have actually paid over the year. More information on the various cost items can be found here.
We make every effort to ensure your transactions are executed as efficiently as possible. That means we optimise the costs, speed and likelihood of the order being executed.
We are keen to offer you a greater insight into how we execute your orders (or have them executed) and how we ensure the best possible result. In the course of 2018 we will therefore provide you with a summary at ing.be indicating the best-performing trading venues for each investment category. A trading venue is the place or stock exchange where the transaction is executed. More information can be found here.
What does MiFID II mean for you?
Like all other banks, from 3 January 2018 ING is required to provide certain information to the supervisory authority AFM in its transaction reports. This includes details of the investor’s identity. In the case of investing legal entities, from 3 January 2018 this information must be provided by means of the Legal Entity Identifier (LEI). You will find more information about the LEI here.
From 3 January 2018 all banks are also required to pass on all identifiers of natural persons to the supervisory authority (FSMA) in their transaction reports. These identifiers are based on the individual’s nationality. In the case of Belgian nationals the information required is the National Registration Number.
If we do not yet hold the correct details about you, you will already have received a letter from us. More information can be found on the following page. If you still have questions, please visit one of our branches.
If you invest in leveraged products, you will be notified if their value drops by 10% or a multiple thereof (relative to the previous quarter).
Using investment instruments properly requires a certain amount of experience and knowledge on the part of the investor. MiFID II analyses the investor’s level of understanding even more effectively than the initial versions of the regulations. Investors are assessed when their investment profile is drawn up by asking them a number of questions about the products available to them.
In addition to the individual’s knowledge and investment experience, his or her investment objectives, financial situation, investment horizon and attitude to risk are also assessed. The investment profile of the investor is determined in this way.
For more information about the different investment profiles, please visit investment profiles.