New Swedish Act (2007:528) on the market in securities
About MiFID in general
The new Swedish Act on the market in securities entered into force on 1 November 2007. The legislation is based on the new European directive known as the Market in Financial Instruments Directive (MiFID). The purpose of the new regulations is to increase competition on the European securities markets, improve monitoring and strengthen consumer protection.
Client categorisation
Under the Act on the market in securities, all clients that trade in securities, buy or sell fund units or carry out other transactions on the securities market must be divided into various groups in order to adjust the level of protection. The protection varies for different client groups depending on the client’s knowledge, experience and other circumstances. Clients are divided into non-professional clients, professional clients or equal counterparties. The highest level of protection is given to non-professional clients and the lowest to clients that are equal counterparties.
Assessment of appropriateness and suitability
The Act contains provisions concerning the duty of the securities institution when providing investment services for financial instruments to examine whether the service or product is suitable or appropriate for the client in view of the client’s circumstances. The examination of suitability, which is the more extensive assessment of the two, is to be made where the institution provides the investment services of portfolio management and investment advice, i.e. those services that include an element of recommendation to the client on the part of the institution, while the more limited assessment of whether or not the product is appropriate for the client is to be carried out for other investment services, i.e. those services in which the client does not rely on the institution's expertise or recommendation. In certain circumstances, certain types of transaction – primarily those that consist only of executing orders, receiving or forwarding client orders with or without subordinate services – may be performed without such an assessment. One such circumstance might be if the transaction concerns uncomplicated products.
Guidelines for order execution and for combining and distributing orders
Öhman has prepared these guidelines in order to achieve the best possible results when Öhman executes or forwards clients’ orders for financial instruments, e.g. instructions to buy or sell equities. A single order may be dealt with using one or more of the methods stated in the guidelines. If the client gives a specific instruction – either a general instruction or an instruction relating to a particular order (e.g. that Öhman shall act as direct counterparty, or shall execute the order on a certain market or in a particular way) – such instruction will take precedence over what is stated in these guidelines. A specific instruction may therefore mean that Öhman cannot take the measures stated in this policy in order to achieve the best possible results. More information on what is meant by a regulated market can be found in Information on characteristics and risk under Other information below.
Conflicts of interest
The Öhman Group offers a wide range of financial services to a broad client group through its various divisions and subsidiaries. The company works continually on taking every necessary measure in order to limit the risk of conflicts of interest within the Group and its clients.
Please contact client services or your own contact if you would like more information.