Regulatory changes from 2018
The EU Markets in Financial Instruments Directive (MiFID) has governed securities transactions in Europe since November 2007. This Directive has now been revised with the aim of increasing transparency on the financial markets. It will take effect on 3 January 2018 under the acronym MiFID II.
In addition to MiFID II, the following EU regulations will also enter into force at the beginning of 2018: the EU Markets in Financial Instruments Regulation (MiFIR) and the Regulation on Key Information Documents for Packaged Retail and Insurance-Based Investment Products (PRIIP).
Amendments to our General Business Conditions
The implementation of the new regulatory provisions requires an update of the General Business Conditions of LLB as of 1 January 2018. The increased requirements concerning transparency that will have to be made in the future regarding both payment transactions and foreign deposits require further adaptations to these General Business Conditions. The updated General Business Conditions and a comparison of the previous and new Terms can be found under the link below. The revised General Business Conditions will be deemed to have been approved, unless an objection is raised within one month.
Section 6 ("General information on MiFID") in the "Terms of Business of the LLB" brochure contains information on:
- Product governance
- Investment advice
- Recording obligation
- MiFIR
Cost transparency
From 2018, we will provide you with more detailed information on the costs of our investment services. This cost transparency encompasses the costs of the services and products. Please read the enclosed "Information on cost transparency under MiFID II" fact sheet.
The cost information with which we provide you before you purchase our services and products (ex ante) constitutes estimates.
You will receive information on the actual costs incurred once per year (ex post), which is why these may deviate from the ex ante estimate.
PRIIP
Non-professional clients will be provided with a key information document (KID) before they purchase or arrange a packaged retail and insurance-based investment product (PRIIP) – for example, funds, structured products or foreign exchange futures transactions. This contains in particular information about the risks and costs of a financial product.
Product Governance − Information for product manufacturers
Upon request, we will gladly provide product manufacturers with information on the financial instruments we distribute.
Please use our contact form and enter the keyword "MiFID II Target Market Product Manufacturer" in your message.
Execution venues and counterparties of the LLB
In executing orders for trades, the LLB will act in accordance with the best interests of its clients. A list of the execution venues and counterparties of the LLB can be found here. This list is not exhaustive and may be amended from time to time.
MiFID II RTS 27 Reporting
Pursuant to Directive 2014/65/EU on markets in financial instruments directive (MiFID II), LLB is required to publish, on a quarterly basis, the quality of the execution of contracts for each market segment operated by it and any financial instrument subject to the trading obligation of Articles 23 and 28 of Regulation (EU) No 600/2014.
MiFID II RTS 28 Reporting
Pursuant to Directive 2014/65/EU (Markets in Financial Instruments Directive, MiFID II), Liechtensteinische Landesbank AG is required to compile and publish a list of the five most important trading venues (in terms of volume) where it executed client orders in the previous year. This is done on an annual basis for each category of financial instrument.
Indirect clearing for exchange-traded derivatives
The factsheet "Information on indirect clearing for exchange-traded derivatives" contains information on the clearing chain as well as different account types and risks associated with exchange-traded derivatives.
