MiFID II and what it means for individuals

What is MiFID II?

MiFID II stands for ‘The Markets in Financial Instruments Directive 2’, which is new legislation that comes into force on 3 January 2018. MiFID II is coming in to effect to increase investor protection and increase how transparent financial markets are.

What does this mean for me?

Under the new MiFID II legislation, organisations are required to confirm their customer’s nationality and national client identifier (NCI) by 3 January 2018. This is to enable firms to accurately report deals completed to their local regulator which for us is the Financial Conduct Authority (FCA). This change will only affect transactions that take place on or after 3 January 2018.

For most UK customers, the NCI is your national insurance number. For non-UK and multi-nationality customers there will be a specific NCI per country, for which we will identify for you when you are updating your information.

For those who act on behalf of other customers, such as Power of Attorney, we will be required to collect the NCI of the person who makes decisions on the account, as well as the underlying account owner.

Companies will need a Legal Entity Identifier.

Why will I need to confirm this information?

This information is required to ensure the FCA can monitor dealing patterns and identify any market abuse. Currently, firms are able to use their own unique identifier (at TSC we use your customer reference number) when reporting transactions to the FCA. The change to use the NCI will ensure this reporting is consistent across all investing platforms and stockbrokers.

Therefore, where this data is outstanding, you will need to provide your NCI, prior to 3 January 2018, to be able to continue dealing in your account as normal. If customers do not provide this information where necessary, it could prevent trading or delay any investments until this information is in place.

How do I submit this information?

Simply sign into your account, go to ‘my profile’ and under the MiFID II requirements, submit the required information. You will be asked to confirm your nationality, your NCI (where appropriate) and possibly your date of birth. For UK nationals, where we already have your National Insurance Number on record, you will not be asked to provide it again.

For joint account customers, you will be contacted to confirm details for both of you.

Please note: this is an activity that will be commencing across the industry with all stockbrokers and investment platforms. Therefore, customers may find they are required to complete this with multiple brokers, where applicable.

What about if I have a company account?

If you hold a company account then you will need to be aware of other changes in requirements under MiFID II. You can find out more by clicking on the link below.