The Markets in Financial Instruments Directive (MiFID) is the framework of European Union (EU) legislation for the provision of the requirements regarding the way investment services are provided across the European Economic Area, including the requirement to provide our clients with information on the way in which we provide services.
MiFID was incorporated into Cypriot Law by the Investment Services and Activities and Regulated Markets Law (N 144(I)/2007), on 1st of November 2007.The Central Bank of Cyprus and the Cyprus Securities Exchange Commission have issued several directives with respect to the requirements of this Law.
|· Authorization, regulation and passporting||· Pre-trade transparency|
|· Client categorization||· Post-trade transparency|
|· Client order handling||· Best execution|
|· Conflict of Interests||· Outsourcing|
On 15th of May 2014 the European Union issued the Directive on the Markets in Financial Instruments Directive, 2014/65/EU, (“MiFID II”) and the Market in Financial Instruments Regulation 600/2014 (“MiFIR”), which amend the existing Directive and are expected to significantly alter the landscape of financial markets.
The revised Directive and Regulation are currently set to take effect in January 2018.
MiFID applies to Banks, Co-operative Societies, Investment Firms, Regulated Markets and covers three basic areas:
- Conduct of business which includes rules governing best execution policies, client categorization requirements and procedures and defines suitability/appropriateness characteristics, transaction reporting requirements and client order’s handling.
- Organization which includes rules regarding licensing, European passport, compliance and risk management, outsourcing of vital functions, conflicts of interest issues and inducements, and governance in general.
- Equity Market transparency which includes rules regarding pre- and post – trade transparency, and new function of systemic internalization.
Wise Wolves Finance Ltd in accordance with the legislation, is required to classify its clients and counterparties into one of the following predetermined categories:
1. Retail Clients
A retail client is a client who does not fall under the Professional or ECP categories. Maximum degree of investor protection is given to Retail Clients while minimum protection is given to Eligible Counterparties
2. Professional Clients
These are the clients who possess the experience knowledge and expertise to make their own investment decisions and properly assess the risks they incur.
These are large undertakings meeting two of the following size requirements on a company basis:
- Balance sheet total of €20 million
- Net turnover of €40 million
- Own funds of €2 million
3. Eligible Counterparties (ECP)
- Investment firms
- Credit institutions
- Insurance companies
- UCITS and their management companies
- Pension funds and their management companies
- Other authorized and regulated financial institutions
- Certain undertakings exempted from the application of MiFID
- National governments and public bodies that deal with public debt
- Central banks and supranational institutions
They are exempted from important obligations under conduct of business rules, best execution rules, client handling order rules.
Under MiFID, Professional Clients and Retail Clients can move between categories. In particular, Retail Clients can request to be treated as Professional Clients and Professional clients can request retail protections.
Under MiFID, Investment Firms must take reasonable care to ensure that a Retail Client requesting treatment as a Professional Client is able to meet similar qualitative criteria regarding its knowledge and experience.
In addition, at least two of the following quantitative criteria must be met:
- the client has carried out transactions, in significant size, on the relevant market at an average frequency of ten per quarter over the previous four quarters
- the size of the client’s financial instrument portfolio, defined as including cash deposit and financial instrument, exceeds 500,000 Euros
- the client works or has worked in the financial sector for at least one year in a professional position which requires knowledge of the transactions or services envisaged
Clients have the right to request a different classification in order to benefit from a higher degree of regulatory protection should they require it.
Please press here to familiarize yourself with our Client Classification Policy in depth.
Wise Wolves Finance Ltd is acting in accordance with all requirements of MiFID and CySEC legislations relating to risk management.
Trading in financial instruments may involve a high degree of risk and may not be suitable to all investors. Trading in financial instruments can result in both loss and profit. Investor should carefully consider whether any investment advice suits needs, financial resources and personal circumstances. For further information, please refer to our Disclosures.
The information contained in this site is solely for informational purposes only and it is not and should not be construed as an offer or a solicitation of an offer, to buy or sell any securities and other financial instruments and cannot be relied upon as a representation that any particular transaction necessarily could have been or can be effected at the stated price.
Post Trade Transparency Publication according to the Cyprus Securities and Exchange Commission Law 144(I)/2007. Wise Wolves Finance Ltd in compliance to the Law, makes public all transactions that fall under the specific directive. As a policy, we make public transactions that we act as a seller in OTC trades with securities that are admitted to trading on an EU regulated market.