Regulations

regulation

MIFID Regulations

The greater complexity and sophistication of financial products has led to the approval of a European-level regulation whose fundamental objective is to establish the appropriate mechanisms to favor investor protection in the markets of investment products and financial instruments affected by it, and therefore affects to a greater or lesser extent all the entities and people that act in financial markets.

In particular, the regulations apply when the following services are provided investment:

Reception and transmission of orders.
Execution of orders.
Advice on investment matters.
Discretionary portfolio management.
Administration and custody of financial instruments on behalf of the client.

In the same way, it is also applicable on the following types of instruments Financial companies currently regulated by the Securities Market Law or any other financial instrument that is included in the scope of the Securities Market Law in the future. Mainly:

Fixed income
Variable Income
Money market instruments
Participations in Collective Investment Institutions
Derivatives in Organized Markets
OTC Derivatives

In a very synthetic way, the advantages that MIFID brings to the financial system are, others, the following:

Improves investor protection measures, so that the companies that provide investment services are more transparent and adapt the investment offers to the profile of the investor.
Modernize financial markets to adapt them to new needs Thus, investment services are expanded, the range of financial instruments and systems for executing operations, to improve investment systems and their operation
It adapts the organizational requirements of the entities included in its scope of application (among others, the Investment Services Companies (ESIS) and credit institutions, to the new solvency requirements and inner workings
Improves the supervisory power of the CNMV and enhances cooperation cross-border between supervisors.

Conflict of interest policy

Royal Legislative Decree 4/2015 approving the revised text of the Law of the Stock Market and Royal Decree 217/2008, of February 15, on the legal regime of investment services companies require that the entities financial institutions prepare a manual that includes the Conflict of Interest Policy in order to to inform their clients of possible situations that may be created conflicts of interest that may harm them.

Thus, the Entity has prepared a Conflict of Interest Policy in accordance with the regulatory requirements, which is summarized in this document.

This Conflict of Interest Policy is applicable to all areas of the Entity and consequently, to all the employees and executives that comprise them, whose activity is related to the provision of investment or auxiliary services, or the realization of investment activities.

Detailed information on possible conflicts of interest is available at the following link.

Incentives

In the course of providing services and / or marketing products of investment, the Entity could receive payments or fees from a third party. The entity always act with the utmost diligence, honesty, impartiality and professionalism in receiving these payments or fees ensuring that they always have the objective of improving and increasing the quality of the service provided to the client.

The incentives satisfied or received in no way affect the search by the party of the Entity in the best interest of its clients, an objective that remains insured through the strict application by it of all mechanisms and measures established so that the services and products offered to them are the suitable ones and adequate.

In addition, the Entity will act with maximum transparency informing of the existence of incentives to the client, when it deems convenient, and revealing, if possible, the amount of such payments or fees received.

Detailed information on possible incentives is available at the following link.

regulation

MIFID Regulations

Conflict of interest policy

Incentives

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