12. February 2016

The CTS system is preparing for new European MiFID II directive, which will replace the current MiFID. MiFID II brings about a fundamental change in the providing of investment services. The directive will bring greater transparency and clarity in the financial world, especially for so-called. retail investors. Practical impacts that CTS will be addressed as an obligation to inform investors in advance of any charges that are associated with the investment, ie. to eliminate hidden costs. Furthermore, the provider must carry out a proportionality test when selling investment products or test the suitability of the investment in the event that provides client counseling. The new requirement is to correctly identify the target group of investors already in the creation of new products, so that all sellers within the organization know which product can offer. The service provider also has a new obligation to inform the client regularly, at least once a year, of any fees or incentives that pay client or provider acquired. Currently there has been a displacement effect of this directive on January 3, 2018 deadline that EU Member States must adapt national legislation at issue in mid-2016.