MiFID

Investment Services in line with Act No 566/2001 Coll. on Securities and Investment Services

• The following are investment services and investment activities:
  • reception and transmission of client orders in relation to one or more financial instruments;
  • execution of orders on behalf of clients;
  • dealing on own account;
  • portfolio management;
  • investment advice;
  • underwriting and placing of financial instruments on a firm commitment basis;
  • placing of financial instruments without a firm commitment;
  • operation of multilateral trading facilities.
• The following are ancillary services:
  • safekeeping and administration of financial instruments for the account of clients, including custodianship and related services, such as cash/collateral management;
  • granting credits and loans to an investor to allow him to carry out a transaction in one or more financial instruments, where the provider of the credit or loans is involved in the transaction;
  • advice on capital structure and business strategy, and advice and services relating to the merger, consolidation, transformation or splitting of undertakings or the purchase of undertakings;
  • foreign exchange services where these are connection to the provision of investment services;
  • investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments;
  • services related to underwriting of financial instruments;
  • services and activities mentioned in paragraph (1) (a) to (f) related to the underlying of the derivatives included in under Article (5) (e) to (g) and (j), where these are connected to the provision of investment or ancillary services.
• “Execution of orders on behalf of clients” means acting to conclude agreements to buy or sell one or more financial instruments on behalf of clients.
• “Dealing on own account” means trading against proprietary capital resulting in the conclusion of transactions in one or more financial instruments; the management of proprietary capital does not constitute dealing on own account.
• “Portfolio management” means managing portfolios of financial instruments in accordance with mandates given by clients at the discretion of the portfolio manager.
• “Investment advice” means the provision of personal recommendations to a client, either upon its request or at the initiative of the securities dealer, in respect of one or more transactions relating to financial instruments.
• “Personal recommendation” means a recommendation given to an investor or potential investor, or the intermediary of an investor or potential investor, whether to:
  • buy, sell, subscribe for, exchange, redeem, hold or underwrite one or more specific financial instruments, or
  • exercise or not to exercise any right conferred by a specific financial instrument to buy, sell, subscribe for, exchange or redeem one or more specific financial instruments.
• A recommendation pursuant to paragraph (7) made solely through distribution channels or for the public shall not be deemed to be a personal recommendation.
• “Underwriting” means the acquisition of financial instruments from their issuer, upon their issuance, for the purpose of selling them to third parties. “Placing” means ensuring the sale of issuer´s financial instruments at the time of their issuance. “Firm commitment” means a commitment to ensure the sale of financial instruments for a pre-agreed price, including a commitment to purchase unsold financial instruments from the issuer.
• “Custodianship” means administration whereby an administrator, in its own name and for the account of the client who owns a financial instrument, performs legal acts required for the exercise and upholding of rights attached to that financial instrument vis-a-vis third parties, such as:
  • acceptance of a financial instrument to the credit of the client´s account;
  • the delivery of a financial instrument to the debit of the client´s account;
  • the crediting of interest, dividends and other payments arising from the holding of a financial instrument to the client´s account.
• “The holding of client financial instruments” means the safekeeping and administration of client’s financial instruments by and in the name of a securities dealer the account of the client; “holding” also means the use of financial instruments received from a client for the purpose of ensuring the provision of other investment services and investment activities.