INTERMONTE HOLDING SIM AND MiFID
MiFiD, the Markets in Financial Instruments Directive, is a new EU directive (2004/39/CE of 21/04/2004) that came into effect on 1st November 2007.
In reality, the regulatory picture as a whole is more complex, and in addition to the above directive, is also made up of the secondary EU Commission directive 2006/73/CE dated 10/08/2006.
These directives have been implemented In Italy through the following laws:
- Decree law 17/09/2007 no. 164 which modified the Consolidated Financial Services Law;
- CONSOB ruling no. 16190 of 29/10/2007 – Regulations covering Intermediaries;
- CONSOB ruling no. 16191 of 29/10/2007 – Regulations covering Markets;
- Bank of Italy and CONSOB regulation pursuant to article 6 comma 2 bis of the Consolidated Financial Services Law.
MiFID sets forth a range of requirements for the entire European financial sector with the aim of introducing a single European market in financial instruments. Its main goal is to promote the emergence of an efficient, transparent and integrated financial trading infrastructure, ensuring a higher degree of investor protection. The Directive contains measures that will change and improve the organization and functioning of investment firms, facilitating cross border trading, while creating strategic opportunities.
Intermonte Holding SIM, as an investment company regulated by European law, falls under the auspices of MiFiD and has therefore adapted its organisational and operational structures with the new legal requirements, protocols and policies necessary to be compliant with the directive.
MiFID requires firms to classify clients in three main categories, as "Eligible Counterparties", "Professional Clients" and "Retail clients", with different level of protection.
Intermonte only has relationships with "Eligible Counterparties" and "Professional Clients". In particular the latter must be aware of the risk affecting the financial instruments negotiated by Intermonte Holding SIM on their behalf (as described in annex 1) and provide information enabling Intermonte Holding SIM to assess the suitability of possible investment advice.
MiFID requires that investment firms take all reasonable steps to obtain the best overall result in the execution of an order for a client. The best possible result is not limited to execution price, but also includes a variety of factors, such as speed, likelihood of execution and likelihood of settlement.
Information about Intermonte’s Execution Policy can be found in annex 2.
MiFID aims at ensuring that transparency of transactions is achieved. In order to enable investors or market participants to assess the terms of potential transactions in financial instruments at any time and to verify afterwards the conditions in which these transactions were carried out, MiFID requires the publication of details of completed stock transactions and the disclosure of details of current opportunities to trade in shares. More specifically, all types of trading in financial instruments, whether on regulated markets, MTFs or over-the-counter (OTC) are subject to a post-trade transparency obligation. Recently implemented regulations on derivative instruments traded over the counter (EMIR) also introduce a series of required information for this kind of instrument, which was previously excluded from MiFID. The aim of the new requirements is to increase the degree of transparency and to prevent behaviour that could be deemed abusive or damaging to the correct functioning of the market.
Intermonte Holding SIM has therefore determined the appropriate mechanism for reporting (via third party or proprietary information systems) in order to comply with the regulations.
Article 25 of Mifid requires investment firms to report all transactions executed in financial instruments listed on foreign regulated markets (which only refers to ICE and EEX for derivatives) to the relevant authority (in Italy this is CONSOB).
Conflict of Interest
MiFID contains detailed provisions dealing with the identification and ongoing management of conflicts of interests.
A concise report on the procedure for the management of conflicts of interest is included in annex 3.
Intermonte Holding SIM S.p.A. - Corso Vittorio Emanuele 13, 20122 Milano, Italia – Tel. +39 02 77115.1 – Fax +39 02 77115.300
Capitale Sottoscritto e Versato € 3.290.500 Part. IVA, Cod Fiscale e Isc. Registro Imprese n. 06108080968 - Cod. LEI: 8156007125B2DED00348