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The MiFID II-Directive

The MiFID II Directive is designed to boost market transparency as well as the efficiency and integrity of financial markets, and is set to come into force on 03 January 2018.

MiFID II implements the following with the aim of making European financial markets more transparent, secure and efficient:


  • Enhanced investor protection
  • Increased cost transparency
  • More resilient market structures
  • Increased documentation requirements
  • Improved quality of order execution ("best execution")
  • Avoidance of conflicts of interest, especially with regard to monetary benefits

  • Investor protection
    Personalized investment proposals that are perfectly aligned to your investment objectives, experience and knowledge by means of an even more comprehensive assessment. In this respect, we draw primarily on the expertise of our highly experienced partner Union Investment (around 300 billion client assets under management worldwide, second-largest fund management company in Germany).
  • Increased transparency
    Consultation log: A comprehensive record of the consultation, including disclosure of all costs incurred, forms the basis for an informed investment decision.
    Telephone consultation: The conversation is recorded and archived for five years.
  • Consultant competence
    Our proven training standards already meet the standards that have since been prescribed and guarantee you receive advice in all matters of financial investment that is tailored to your individual needs.
  • Stability
    Your orders will be executed at the best possible price (best execution), while ensuring the transactions are processed securely.

The provisions apply to:


  • Credit institutions and companies providing services in connection with securities and other financial instruments (e.g. derivatives and money market instruments)
  • Stock exchanges and other trading structures
  • Clients using services in connection with securities and other financial instruments (e.g. derivatives)

MiFID II distinguishes between:


  • Private clients: Private clients, small and medium-sized enterprises, freelancers, etc.
  • Professional clients: Credit institutions, securities firms, insurance companies and large companies
  • Suitable counterparties: e.g. trading partners of banks

Depending on the client classification, different standards are applied to the provision of information and the scope of advice.

  • Securities orders: Clients can only issue orders to SIGMA Bank in writing or—if appropriate agreements have been made— by telephone or SIGMA Bank Electronic Banking. All telephone and electronic communications with SIGMA Bank concerning investment services are recorded and stored for five years. A copy of these records may be provided to the client upon request.
  • Only non-independent advice is provided in SIGMA Bank's securities business. In the advisory business, the product catalog offered includes in-house financial instruments (e.g. issue of our own bonds) as well as investment funds and certificates from collaboration partners such as Union Investment and certain selected certificate providers.
  • With regard to product assessment, SIGMA Bank carries out a one-time, event-driven suitability test at the time of the consultation. Regular assessment of suitability, on the other hand, is not offered.
  • If the client acquires financial instruments in an advisory-free transaction, no target market check is performed. The statutory appropriateness assessment (the assessment of whether the client has the knowledge and experience required for the respective financial instrument) is carried out in any case.
  • SIGMA Bank does not offer the conclusion of derivatives for private and professional clients.

In its "Principles of Order Execution", SIGMA Bank defines standards for purchases and sales of securities and other financial instruments. It ensures that the best possible result—best execution—is achieved on average when executing customer orders. The following aspects are taken into account: Price, costs, execution and settlement probability. These criteria are reviewed periodically (at least annually). Clients may issue deviating instructions; best execution does not apply to these orders.

If, in banking transactions, conflicts arise between the interests of the client, SIGMA Bank, its employees or other clients, these must be identified or dealt with and avoided. In the event that they cannot be avoided, these conflicts of interest must be disclosed. Appropriate guidelines have been drawn up for dealing with conflicts of interest and procedures have been implemented for identifying, dealing with and avoiding them. We will be happy to provide you with a copy of these upon request. Particular attention should be paid here to the granting and acceptance of benefits by SIGMA Bank. This refers to fees, commissions, other monetary benefits or benefits not offered in monetary form from and to third parties.

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