Consumer protection further improved

Slovakia
UniCredit Bank Czech Republic and Slovakia, a.s., pobočka zahraničnej banky
Thu, 28/09/2017

MIFID II regulations will be implemented into the legislation of the Slovak financial market

                                                                                                                      

A new amendment Act on Securities and Investment Services pertains to securities markets, investment intermediaries and places of trading, providing a higher level of protection of customers.

It introduces an obligation for places of trading and systematic internalisers to provide the relevant authorities with financial instruments reference data which shall characterise the financial instrument. The amendment imposes new harmonising and an efficient infrastructure of data collection in the financial market and establishes supervision over data reporting services providers.

 

Further major changes:

  • Strengthening the protection of customers in all fields of the financial market (banking, insurance, asset management etc.);
  • Expanding articles resulting in the more effective conduction of supervision of the financial market including proceedings and sanctions imposed by the regulator;
  • Formulation of  new financial instruments - emission quotas and depository receipts (GDRs, ADRs);
  • Inclusion of investment funds with variable capital into collective investment schemes;
  • Stressing the fee transparency when delivering investment advisory or portfolio management services to the client. Stock exchange fees for the execution and cancellation of orders shall also be transparent and predictable; 
  • Product governance – adjusting requirements on the creation of financial instruments and their maintenance; 
  • Defining the rules for an organised trading system and imposing obligations of securities brokers to establish and maintain such a system;
  • Implementing new requirements applicable to market places on the monitoring and prevention of the misuse of high-frequency algorithmic trading techniques;
  • Widening of requirements for market participants manager;.
  • Data reporting services providers may supply services in the following fields:
    • APA – publishing of trade transactions information on behalf of securities brokers,
    • CTP – reporting of data relating to trades with financial instruments in the regulated market, multilateral trading systems and organised trading systems and from APA providers,
    • ARM – mechanism of reporting to the market regulator.

This measure incorporates the transposition of MIFID II European regulations 2014/65/EU (amended by 2016/1034/EU), 2014/65/EU and 600/2014/EU (amended by 2016/1033/EU). The amendment will come into effect once it is signed by the President and published in the Collection of Laws of The Slovak Republic. The amendment shall become valid on 1 November 2017, some of the articles only on 3 January 2018 and 3 September 2019.

 

Maria Gelingerova

Relationship Manager

GSS Slovakia

maria.gelingerova@unicreditgroup.sk