MiFID (Markets in Financial Instruments Directive) is a European directive in the field of investment services and financial instruments which strengthens consumer protection.

In Slovakia the MiFID is implemented in the law no. 566/2001 Coll. about securities and investment services. Banks and securities dealers are obliged to align their activities with the new version of the law until 1st of May 2008.

The main aims and contributions of MiFID for clients are:

• strengthening the protection and awareness
• Increasing the competition between banks and securities dealers
• again increasing the competition between individual market organizers (most of all between stock-exchange organizers) in order to improve service quality and lower service costs for the client,
of mostly small (non-professional) investors, within the framework of the European area and thus improving the service quality and lowering the service costs for the client,

Changes brought by MiFID concern the following areas:

1. Client Categorization
In practice MiFID means that based on their knowledge and experience (i.e. maturity) on financial markets clients will be placed into individual categories:

°non-professional (retail) client,
°professional client,
°eligible counterparty

The level of protection offered by Tatra banka depends on the respective category the clients are placed into whereas the category of non-professional clients is considered to be a category with the highest level of protection.
Existing clients will be assigned to these categories as well as new clients, who are interested in using the Tatra banka services as a securities dealer.

For more information regarding the client categorization click here.

2. Financial Instruments and Investment Services
In MiFID the products are referred to as "financial instruments" and the services as "investment services".

Among the most known financial instruments concerning the MiFID belong:

°mutual fund shares,
°stocks,
°bonds,
°derivatives (e.g. forwards, swaps, options).

The most often used investment services are:

°accepting and assigning clients' orders
°executing clients' orders,
°trading on one's own account,
°investment advisory.

In connection with the above-mentioned services you might encounter the knowledge and experience test (appropriateness test) and the suitability test (investment advisory).

For more information regarding the investment services click here.

3. Information
Tatra banka is obliged to provide you in a comprehensible manner with all information necessary for you to understand correctly the character and the risks of investment services and of specific kinds of financial instruments.
Apart from the basic information about Tatra banka you can find here information regarding:

°language and form of communication between the client and Tatra banka,
°statements related to financial instruments and investment services,
°management of securities,
°investment guarantee funds
°conflicts of interests, earned and paid commission by Tatra banka.

4. Strategies of Executing and of Assigning Orders
For the purposes of reaching the best possible results for clients when executing their orders Tatra banka has prepared the Strategy of Executing and of Assigning Orders.