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New Markets in financial instruments directive (MiFID) II rules 2018

Categories: EQi explains

The Markets in Financial Instruments Directive (MiFID) II came into effect on 3 January 2018 and delivered some significant changes to investing regulations in the UK.

What MiFID II does?

MiFID II introduces enhanced obligations for companies providing investment services, providing three main benefits to investors:

Greater transparency of fees and charges
A move to quarterly investment statements
Added protection from market abuse

The Terms and Conditions will be changing as a result of these new regulations. A copy of the new Terms and Conditions will be provided towards the end of the year.

What does this mean for me?

MiFID II requires investors to supply additional information to be able to continue trading in 2018.

Check your full name, date of birth and nationality/nationalities are recorded correctly on your account.
Provide a ‘National Client Identifier’ (NCI):
For sole UK nationals, the NCI is your National Insurance Number.
Non-UK nationals, and anyone who has multiple nationalities, may be asked for a different NCI. e.g. your passport number.

When do I need to supply the information?

Regular traders and those with standing instructions (such as Regular Investments, Dividend Reinvestments and/or pending Limit Orders - as soon as possible

Occasional traders - prior to your first trade in 2018

If you don’t provide this information, we may not be able to trade for you in 2018 until your information is updated. This includes any Regular Investments and Dividend Reinvestments.

Accounts held in your own name

Log in to your account as usual. Update your information in ‘My profile’ which can be found by clicking on your initials within the circle at the top right hand of the page.

You can also take the opportunity to review your other personal details and marketing preferences at the same time.

Joint accounts

First named account holder

The first named account holder can check and update information online by logging in to the account as usual. Update information in ‘My profile’ which can be found by clicking on your initials within the circle at the top right hand of the page.

You can also take the opportunity to review your other personal details and marketing preferences at the same time.

Additional named account holders

Please complete and post the Personal Details Update form to us.

Download Form

Information for all account holders must be updated.

Investment Clubs

The Personal Details update form has to be completed for every member of the Investment Club, including the Lead Investor. The Lead Investor can complete the form on behalf of the members – a signature is not required.

Download Form

Please post all the completed forms to Selftrade together.

Child Trust Funds

Provide information about the parent/guardian

The parent/guardian managing this account should complete and post the Third Party Regulatory Details form to us.

Download Form

Confirm information about the account holder

We have the child’s name, address and date of birth on file.

When returning your form, or calling Customer Services, please confirm their nationality. If they are solely a UK National, we will not require anything from you, as they are not allocated a National Insurance Number until they are 16. If they are a non-UK national, or have multiple nationalities, we may need a different NCI.

Company, charity or trust accounts

MiFID II regulations state that company, charity and trust accounts are required to obtain, and supply, a Legal Entity Identifier (LEI).

A LEI is a 20-character identifier that identifies distinct legal entities that engage in financial transactions. Further information can be found on the London Stock Exchange.

In order to place a trade after 2 January 2018, please obtain and provide us with the LEI. Please send the LEI to us by secure message from your account.

How to obtain an LEI

An LEI must be applied for via an accredited body – a list of all issuing organisations can be found here. Please note that the issuing organisation will charge a fee for providing and renewing an LEI.

In the lead up to 3 January, it’s likely that organisations issuing LEIs will be subject to an increased volume of requests and lead times for obtaining your LEI may vary.

Third Parties

If there is a third party linked to your account e.g. a relative or an advisor, who makes investment decisions on your behalf, they will also need to provide some additional information.

The information can be provided by completing the Third Party Regulatory Details form, found in the forms and guides section of our website, or by calling Customer Services 0345 0700 720.

Download Form