MiFID – Markets in Financial Instruments Directive
The European Commission decided that, effective November 1, 2007, the new directive for securities trading and capital markets “MiFID” will come into force. It is viewed as the new fundamental law of the European financial markets. Essentially MiFID aims to strengthen competition among providers of financial services and to increase market transparency as well as improve client protection. At the same time it will also lead to increased market liquidity and efficiency within the capital markets.
The directive requires a classification of clients into one of three client categories: “Retail Client”, “Professional Client” or “Eligible Counterparty”. This will ensure a client protection which is in line with the client’s knowledge and experience of capital markets products.
Information about WestLB AG and Its Client Classification
WestLB AG holds a banking licence pursuant to § 32 of the German Banking Act (KWG) to conduct banking business. The responsible supervisory authority is the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), Graurheindorfer Straße 108, 53117 Bonn, and Lurgiallee 12, 60439 Frankfurt am Main.
Furthermore, WestLB AG is an investment services company pursuant to § 2 para. 4 of the German Securities Trading Act (WpHG). Pursuant to § 31a para 4 WpHG, our company is an Eligible Counterparty within the meaning of the Act and its provisions.
A written statement about WestLB AG’s own classification is available for downloading to all business partners who are governed by the regulations of the WpHG concerning client classification.
Management of Conflicts of Interest
The identification and prevention of conflicts of interest and the proper management of such conflicts represent an important task for any financial services company. The “Information on the Management of Conflicts of Interest” is provided in detail on these pages (see attachment).
Any questions which you may have concerning MiFID and the implementation of this directive at WestLB AG will gladly be answered by the contact persons on the right.