The Share Centre - MiFID II – what this means for customers

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MiFID II and what it means for our customers

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What is MiFID II?

MiFID II stands for ‘The Markets in Financial Instruments Directive 2’, which is new legislation that comes into force on 3 January 2018. MiFID II is coming in to effect to increase investor protection and increase how transparent financial markets are. This new legislation will also create consistency across Europe.

What does this mean for me?

Under the new MiFID II legislation, organisations are required to confirm their customer’s nationality and national client identifier (NCI) by 3 January 2018. This is to enable firms to accurately report deals completed to their local regulator which for us is the Financial Conduct Authority. For UK customers, the NCI is national insurance number, which we will start collecting soon for those of our customers where we don’t already have it in our records. For non-UK customers, there will be a specific NCI per country, for which we will identify to those customers.

For those who act on behalf of other customers, such as Power of Attorney, or registered contacts for children / spouse, we will be required to collect the NCI of the person who makes decisions on the account, as well as the underlying account owner. 

Companies and charities will need a corporate identifier.

Why will I need to confirm this information?

This information is required to ensure the FCA can monitor dealing patterns and identify any market abuse. Using the NCI will ensure this reporting is consistent across all investing platforms and stockbrokers. Therefore where this data is outstanding, customers will need to provide their NCI, prior to 3 January 2018, to be able to continue dealing in their account as normal. If customers do not provide this information where necessary, it could prevent trading or delay any investments until this information is in place.

How do I submit this information?

Over the coming months, we will be sending out communications to all those affected, with an easy method to enable you to submit your Nationality and/or NCI, ensuring there is plenty of time to complete this simple process.

Please note: that this is an activity that will be commencing across the industry with all stockbrokers and investment platforms to comply with this new legislation and therefore, customers may find they are required to complete this with multiple brokers, where applicable.

What about if I have a company / charity account?

If you hold a company or charity account then you will need to be aware of other changes in requirements under MiFID II. You can find out more by clicking on the link below.