Switch to mobile version. Top

MiFID: Frequently Asked Questions

What is the "MiFID"?

MiFID is abbreviation for the Markets in Financial Instruments Directive. MiFID is the European Union Directive which regulates the provision of financial services.

When does the MiFID enter into force?

MiFID entered into force on 1 November 2007. Banks which provide financial services will need to organize their operation according to the MiFID requirements by the stated date. The new Directive replaces the Investment Services Directive (ISD), which was valid from 1993.

Which financial instruments are regulated by the MiFID?

Shares, Investment Funds, Debt Securities, Money Market Instruments, Derivative Instruments (currency, security, commodity, interest rate, etc.).

Does the MiFID influence also clients of SEB Bank?

MiFID provides the measures to be followed by the Bank in provision of financial investment services to its clients. The new requirements set a higher level of client service, more detailed amount of information to be provided to the clients, including information about types of investment and related risks. The task of the Bank will be also evaluation of each client's experience and knowledge about financial investment products in order to be able to determine the most suitable investment opportunities for its clients.

How does the MiFID impact the financial markets?

One of the main objectives of the MiFID is to promote fair, efficient and integrated operation of financial markets, at the same time by promoting competition among various places for conclusion of trade transaction. After introduction of the Directive, Member States will not be able to state anymore that all local retail trade orders must be executed on a regulated market. The MiFID is provided for instead, in order to clear the way to competition by introducing equivalent rules of the game/regulation to various places for conclusion of transactions. Such places are stock exchanges (regulated markets), other organized trading facilities and investment firms that perform over-the-counter (OTC) trade.

In order to achieve the same, this Directive provides requirements that regulate execution of transactions. Particularly, the requirements for pre- and post-trade transparency will apply to all transactions with shares allowed for trade on a regulated market. It is irrespective of the place of trading. These requirements will considerably alter the way of operation of financial markets and the behaviour of firms participating in operation of such markets.

The MiFID provides standards to stock exchanges and other trading systems: what are the standards?

The MiFID introduces comprehensive regime of pre- and post-trade transparency for trade in shares in the three main types of places for making transactions: regulated markets, multilateral trading facilities – including alternative places for making transactions, and trading outside regulated market and multilateral trading facilities.

What is the Order Execution Policy?

Order Execution Policy provides measures and factors which shall be taken into account by the Bank in execution of its client's orders regarding transactions with financial instruments. In order a client could make transactions with financial instruments, the client must give his consent to the Bank's Order Execution Policy.

What are the organization requirements set by the MiFID?

The MiFID requirements are of much broader scope than regulations set by the most financial institutions in this field. Therefore, the regulations will be amended to reflect such changes. The provisions include:

  • Organizing and control of operation compliance;
  • Internal systems and control;
  • Outsourcing;
  • Accounting;
  • Solving of conflicts of interest and protection of the client's financial instruments and funds in disposal of firms.


  • +371 26668777
    +371 67779988

    Block payment card and internet bank


    Other questions

    Private customers

    Mon - Fri 08.00 - 18.00

    Business customers

    Mon - Fri 08.30 - 18.00


Uzmanību! Jūsu pārlūkprogramma neatbilst SEB mājas lapas prasībām, lūdzu, atjaunojiet to vai izmantojiet citu ierīci lapas aplūkošanai.

Attention! Your web browser does not correspond to the requirements needed to visit SEB website. Please change web browser or device that you use for browsing the site.

Внимание! Ваш браузер не отвечает требованиям, необходимым для посещения сайта SEB. Просим поменять браузер или устройство, при помощи которого вы производите поиск в браузере.