Investor Protection

Information for investors

Investors are encouraged to study carefully the Act on Securities Transactions and the Regulation on Investor Protection and the Business Conduct of Financial Undertakings

Investors are strongly encouraged to study carefully the following information and Íslandsbanki's rules concerning securities trading.

Legal Entity Identifier (LEI) and National Client Identifier (NCI) when Trading in Financial Instruments

Legal Entities who intend to trade in financial instruments, admitted for trade on a regulated trading venue, must have submitted a Legal Entity Identifier (LEI) to Íslandsbanki as of and including 3 January 2018.

All individuals of foreign nationality, who intend to trade in the aforementioned financial instruments, must have submitted a special National Client Identifier (NCI) to Íslandsbanki as of and including 3 January 2018.

Push the relevant button for further information.

Legal Entitiy Identifier (LEI) National Client Identifier (NCI)

Implementation of MiFID with the Act on Securities Transactions

Legislation on securities trading entered into force on 1 November 2007. The legislation is based on the European Union's Markets in Financial Instruments Directive (MiFID). This directive entails extensive changes in rules on securities trading in the European Economic Area (EEA), which have an impact on relations between financial undertakings and their clients.

Who is affected by the MiFID legislation?

The enactment of MiFID had an impact on all natural and legal persons who engage in securities trading. The directive is beneficial for clients, as it is intended to protect investors, increase transparency and promote more active competition. The enactment of the MiFID legislation also increased the requirements for information accuracy. Provisions of this kind make it easier for clients to make investment decisions, and in addition they benefit from the improved organisational arrangements for investments and investor protection.

The objective of MiFID is to establish a single European market for investment services. It is also intended to respond to changes and innovations in security matters and thereby revise rules and legislation. The directive is intended to protect investors by making markets more profound and competitive and better prepared to respond to potential fraud and abuse.

The directive is beneficial for clients, as it is intended to protect investors, increase transparency and promote more active competition. The enactment of the MiFID legislation also increased the requirements for information accuracy. Provisions of this kind make it easier for clients to make investment decisions, and in addition they benefit from the improved organisational arrangements for investments and investor protection.

The MiFID legislation is intended to broaden the scope of legislation on financial services in Europe so that it extends to the majority of financial undertakings operating in the European Economic Area. It applies, among other things, to investment banks, fund management companies and securities brokerages.

Under MiFID, Íslandsbanki is required to categorise its customers into retail clients, professional clients or eligible counterparties to reflect their different situations. This means that investor protection will differ depending on their classification. Services will be tailored to the extent possible to certain criteria. For example, when providing investment advice to a retail client, a financial undertaking shall obtain the necessary information on the client's knowledge and experience of the type of securities trading in question, his financial situation and his investment objectives so as to enable the financial undertaking to recommend suitable securities transactions to the client. MiFID requires undertakings to ensure that all information, including marketing communications addressed to clients or potential clients, is fair and not misleading.

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