Investor Protection (MiFID)

Beginning from November 1, 2007, MiFID (Markets in Financial Instruments Directive), a new regulation strengthening consumer protection, came into force in the majority of the EU countries.

The Slovak Republic has adopted the Directive by amending the Securities Act No. 209/2007 Coll. Although effective from November 1, 2007, securities dealers including banks are required to fully comply with the amended law not later than on May 1, 2008 pursuant to the transitional provisions.

The major changes consist in the following:

• The new client categorisation,
• Obligations of securities dealers to provide investment services to clients under best conditions possible for a given product,
• Obligations of securities dealers to approach each client individually based on information provided by a client,
• More specific market transparency requirements,
• Demanding requirements for organisation of a securities dealer to ensure quality internal control mechanisms and prevent conflict of interest.

We have been informing investors of transactions performed with listed stock and bonds since November 1, 2007.

A Summary of Investment Services and Ancillary Investment Services Provided to Clients of VUB, a.s.

Description of the financial instruments.

List of the financial instruments.

Client Categorisation

Pursuant to the valid Securities Act, banks are obliged to assign all clients using our investment services to one of the three following categories:

• Authorised Counterparty,
• Professional Client,
• Non-professional Client.

More information on categorisation 

Best execution policy

VÚB has set out and adopted appropriate measures for obtaining the best possible result for the execution of its clients order. These measures are regulated according to the Secutiries Act.  

Best execution policy.

Conflict of Interest Prevention

VÚB has adopted and implemented appropriate and effective measures and procedures to prevent, minimise, and resolve any potential conflict of interest. The measures divide conflicts of interest that may arise out of banking activities into internal and external conflict of interest.

The measures mitigating the risk of origination of the internal conflict of interest include organizational, personnel, and other measures related to exchange of information and maintenance of documentation in the Bank. Similarly, VÚB introduced measures to eliminate the origination of the external conflict of interest connected with economic activities of employees and transactions between the Bank and an employee or a person related to an employee. Furthermore, VÚB implemented special measures to avoid conflict of interest in the area of financial analysis.

VUB applies and adheres to the measures to prevent conflict of interest and/or manage imminent conflict of interest to avoid origination of a risk that may damage interests of our clients. VÚB monitors and analyses effectiveness of the measures regularly.

With respect to a potential conflict of interest, VÚB declares that it shall inform a client of a substance and source of a conflict of interest prior to rendering any investment service or performing any activity. In addition, VÚB undertakes to give preference to interests of clients over its own ones in case of rendering any investment service or performing any activity. Should a conflict of interest arise between clients, the Bank shall ensure equal and fair treatment of all clients.

List of Transactions Performed

Pursuant to the applicable Securities Act, banks are obliged to publish transactions with listed stock and bonds performed on other than a regulated market or outside a so-called multilateral transaction system.

For more information please visit slovak version of the site.