What is MiFID?

Markets in Financial Instruments Directive ("MiFID")¹ is a new body of regulation mandated by the European Commission intended to provide additional protection to investors and consumers of investment services. It establishes a consistent regulatory framework across the European Economic Area ("EEA"), and will change the way the capital markets operate across Europe in terms of both individual participants and the market infrastructure.

MiFID introduces new and more extensive requirements for investment firms which must be implemented by November 1, 2007. In some areas indeed Slovak legislation brings possibility to implement the requirements of MiFID until May 1, 2008.

HSBC MiFID Documentation

Under MiFID, relevant Financial Service Authority (“FSA”)² rules and local legislation and regulations, investment firms are required to disclose certain additional information to clients. Information about MiFID or the implementation of MiFID is available from the FSA on http://www.fsa.gov.uk, alternatively from
the National Bank of Slovakia („NBS“) on http://www.nbs.sk.

Client Categorisation

In accordance with FSA rules and Slovak legislation and regulations, all clients undertaking investment business must be classified in one of three categories:

• Non-professional Client (In accordance with FSA rules we may title Non-professional Client as Retail Client),
• Professional Client,
• or Eligible Counterparty.

If you have a question

Any queries regarding MiFID should be directed to the HSBC Bank, plc., branch of foreign bank in Slovakia on +421 (0) 2 5826 4103 or on email: investicie.sk@hsbc.com. Written queries regarding a change in Client Categorisation or requests for further information should be mailed in hard copy to:

HSBC Bank plc, branch of foreign bank
Europeum Business Center
Suché Mýto 1
811 03 Bratislava

¹Directive of European Parliament and Commission No. 2004/39/ES from April 2004 on Markets in Financial Instruments.
²FSA is regulator of HSBC Bank plc and her branches within EU included Slovakia.