MIFID II approved by Croatian Parliament

Zagrebacka Banka d.d.
MIFID II has been approved by the Croatian Parliament on 6 July 2018 and will come into effect 27 July 2018.
Fri, 20/07/2018

On its session held on 6 July 2018, the Croatian Parliament adopted Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments (MiFID II) which, among other things, will enhance investor protection and provide extended transparency.  

New legal requirements of MiFID II will introduce changes to client reporting obligations, whereby statements regarding client assets are required to contain information such as: which assets are affected by peculiarities in their ownership status (for example, due to security interest); indication of the fact that the absence of market price is likely to be indicative of lack of liquidity, and others.

In order to be compliant with these requirements, UniCredit GSS in Croatia will provide the respective information in the Sub-balance Subsequence (Block SUBBAL) of its SWIFT MT535s. Up to four characteristics may be included, with the following order of priority:

-       low price security

-       illiquid security

-       sanctioned security

-       peculiarity resulting from MiFID II blocking

-       peculiarities related to the particular ISIN

Impact on investors: MIFID II will become effective as of 27 July 2018.