MiFID II requires ABN AMRO to provide its clients with certain information. This information is made available on this page.
The Markets in Financial Instruments Directive II ("MiFID II") and the Markets in Financial Instruments Regulation ("MiFIR") provide for the European regulatory framework governing the requirements applicable to investment firms, such as ABN AMRO, MiFID II and MiFIR, are together often referred to as just MiFID II and apply in all Member States of the European Union including Norway, Iceland and Liechtenstein.
MiFID II aims to strengthen the framework for the regulation of financial markets, including where trading takes place over-the-counter (OTC), increase transparency, enhance conduct of business rules, better protect investors, reinforce investor confidence and ensure that supervisors are granted adequate powers to fulfil their tasks. MiFIR lays down rules on the disclosure of trading activity data to the public, disclosure of transaction data to competent authorities and the mandatory trading of certain derivatives on trading venues.
The MiFID II client categorisation is a framework that classifies clients into three categories: eligible counterparties, professional clients, and non-professional clients. The purpose of this categorisation is to ensure that clients receive an appropriate level of protection and information according to their knowledge, experience, and expertise in the financial markets.
MiFID II focusses on investor protection, aiming to safeguard non-professional clients, by ensuring they have access to suitable financial products and services.
The directive requires assessments of an investor's knowledge and experience through appropriateness and suitability tests. These evaluations help to ensure that investors are fully aware of the risks associated with complex financial instruments.
Additionally, MiFID II enhances transparency by requiring firms to provide clear, comprehensive information about products, fees, and potential risks. This regulatory framework also enforces strict reporting and record-keeping obligations, ensuring accountability and enabling investors to make informed decisions.
Through these measures, MiFID II creates a more secure and transparent financial market environment for all participants.
ESMA introduces a designated reporter regime to replace the designation of a firm as a Systematic Internaliser (SI), for the purposes of determining responsibility for post trade transparency reporting.
A designated reporting entity has the responsibility to report specific financial transactions to the regulator. Under MiFID II, these entities ensure that transaction data is accurately and promptly reported, enhancing market transparency and integrity. Designated reporting entities may include investment firms, trading venues, or third-party service providers. They must adhere to strict guidelines regarding the format, content, and timeliness of reports to ensure compliance and facilitate effective market oversight by regulators.
ABN AMRO has been registered as a designated reporting entity for all bonds and derivatives to which is it a party to a transaction and will make the transaction public through an Approved Publication Arrangement (APA).
An important advantage of ABN AMRO's designated reporting entity status is that clients who are themselves investment firms are relieved from their post-trade disclosure obligation. Unless these clients are designated reporting entity themselves.
