Market in Financial Instruments Act

UniCredit Bank Slovenija d.d.
Market in Financial Instruments Act implements Directive 2014/65/EU of the European Parliament and of the Council of 15th May 2014 on markets in financial instruments (Directive MIFIDII).
Wed, 12/12/2018

Market on Financial Instruments Act was published in the Official Gazette nr. 77 on 30th of November 2018 and will be valid from 15th of December 2018.

In addition to the Directive 2014/65/EU, the Act also regulates the implementation of Regulation (EU) 2014/600 in markets in financial instruments (MiFIR). Following is regulated:

  • conditions for offering securities to the public and for the listing of securities to be traded on the regulated market of financial instruments
  • obligations regarding the disclosure of information relating to securities admitted to trading on a regulated market.
  • conditions for the establishment, operation, supervision and termination of investment firms, operators of trading venues, providers of data reporting and settlement systems established in the Republic of Slovenia.
  • rules of trading on regulated markets, prohibited conduct of market abuse and rules for settlement of transactions concluded on regulated markets, as well as rules for a multilateral trading system and an organized trading system.
  • reintroduction the Organized Trading Facility (OTF) and Multilateral Trading Facility (MTF) and establishment of conditions for algorithmic trading including high-frequency algorithmic trading.
  • the conditions under which persons with head offices in other Member States and third countries may provide investment services and transactions in the Republic of Slovenia.
  • Detailed regulation of guarantee scheme and bankruptcy of brokerage house.
  • The Act increases the supervision competences of the Securities Market Agency and harmonisation of sanctions.

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 (bankruptcy, liquidation, low priced securities, illiquid securities, and restricted securities, blocked…). Additional requirement of MIFIDII is related to Fees and charges that have to be correctly displayed: Safe custody costs have to be expressed both as cash amount and as percentage.  Third party costs have to be presented separately and disclosed to investor.

In order to be compliant with these requirements, UCB Slovenia will provide the respective information related to peculiarities in the Sub-balance Subsequence (SUBBAL block field 93a) of its SWIFT MT535s. Information related to Fees and charges will be disclosed on the invoice accordingly.

The brokerage houses have to comply with the new act within 6 months of the adoption of this Act. Client Classification has to be sent out within 1 month of the adoption of the Act.

Securities Market Agency will issue underlying regulations that are necessary for the implementation of this Act within 6 months of the its validity.

Impact on investors: Adjustment of Slovene legislation with Directive 2014/65/EU.