MiFID II and what it means for our customers
What is MiFID II?
MiFID II stands for ‘The Markets in Financial Instruments Directive 2’, which is legislation that became effective on 3 January 2018. MiFID II increase sinvestor protection and increases how transparent financial markets are.
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). This is to enable firms to accurately report deals completed to their local regulator which for us is the Financial Conduct Authority.
For most UK customers, the NCI is your national insurance number. For non-UK and multi-nationality customers there will be a specific NCI per country, for which we will identify you when you are updating your information.
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, charities and trusts (excl. bare trusts) will need a Legal Entity 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. Previously, firms were able to use their own unique client identifier (at TSC we used your customer reference number) when reporting transactions to the FCA. The changes to use the NCI ensures this reporting is consistent across all investing platforms and stockbrokers.
Therefore, where this data is outstanding, you will need to provide your NCI, to be able to continue dealing in your account. 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?
Simply sign into your account, go to ‘settings’ and under the MiFID II requirements, submit the required information. You will be asked to confirm your nationality, your NCI (where appropriate) and possibly your date of birth. For UK nationals, where we already have your National Insurance Number on record, you will not be asked to provide it again.
For Joint account customers, please contact our Customer Service team to provide the missing information.
Please note: this is the same across the industry with all stockbrokers and investment platforms. Therefore, customers may find they are required to complete this with multiple brokers, where applicable.