Global Markets
Main impacts of MiFID II on your transactions with our Global Market Division in Asia
If you receive services from one of our Societe Generale sales person based in Europe, or if you are a client of Societe Generale International Limited, your transactions may be subject to/impacted by some additional MiFID II requirements, notably on:
MiFID II classification
Obligation to provide a MiFID classification to clients (Retail, Professional or Eligible Counterparty), the level of protection offered varying from one category to the other.
Best execution
Depending on products traded and trading channel, Societe Generale may owe you best execution in accordance with the Best Execution Policy of Societe Generale available on the Societe Generale website (or on the Societe Generale International Limited website, if relevant). Additionally, depending on your category, we need to obtain your express consent to execute an order outside a trading venue - regulated market, a multi-trading facility or an organized trading facility [when relevant, in order for us to comply with this obligation we need to obtain information set out in the Client MiFID II Consent letter Pack]
Clients information
MiFID II enhances the information to clients, by strengthening the information related the products and financial services. In particular, it creates an obligation to provide in good time, before and after the provision of the service, an information about the aggregated costs and charges related to the financial instrument and to the financial service provided (pre- and post-trade).
Inducements (impact on research)
MiFID reinforces requirements on fees, commissions and non-monetary benefits (paid to or received from third parties) in relation to the provision of investment/ancillary services. In particular, EU portfolio managers and independent investment advisors are prohibited from receiving third party payment, including non-monetary benefit such as research. including requirement on unbundling of research. This means that EU portfolio managers and independent investment advisors shall pay for research
Scope? All EU portfolio managers and independent investment advisers have to specifically pay for research
What? Research includes anything containing a substantiated opinion and investment strategy on present or future asset value, including: voice or written research, distributed through any channel (emails, meetings, publications, etc.)
How? For clients in scope, access to research web platform requires a formal contractual arrangement with Societe Generale
Reinforcement of suitability and appropriateness requirements
Depending on the client MiFID II category and depending on the type of activities conducted, MiFID II requires investment firms (such as Societe Generale) to assess whether the product/service is suitable or appropriate taking into account client’s profile.
Product governance
New requirements to ensure that firms which manufacture and distribute financial instruments act in the clients’ best interests during all stages of the life-cycle of products and services (incl. PRIIPS). Important note – these requirements do not apply to our distribution business in APAC, which is based on the following principles: all Societe Generale products sold to distributors in APAC are manufactured outside EEA, and all Societe Generale products sold to APAC investors are manufactured and sold outside EEA.
Reporting on Quality of execution
Yearly reporting by investment firms, for public disclosure, of statistical reports on top 5 execution venues or brokers used, and on the quality of execution.
These requirements have a limited impact on you in Asia unless you are a client of Societe Generale International Limited in Asia, or unless you receive services from one of our sales person in Europe. More details on these requirements