UNITED WORLD CAPITAL - A consumer guide to MiFID

A consumer’s guide to MiFID

Investing in financial products

What is MiFID and how does it affect you?

Firstly, United World Capital is registered as a CIF (Cyprus Investment Firm) under the registration number HE230122 and licensed by CySEC (Cyprus Securities and Exchange Commission) under the license number 093/08 in accordance with new MiFID (Markets in Financial Instruments Directive) – a European Union law which provides a harmonized regulatory regime for investment services across the 27 member states of the European Economic Area.

Our Easy to read MiFID questions and answers is available here

Here are the basics of a new piece of European
legislation called the Markets in Financial
Instruments Directive (MiFID) and how it affects
you when dealing with firms that provide
investment services in Europe.

Think about the financial products that you own.
You probably have one or more bank accounts, a
mortgage, a credit card, some shares, a pension
plan, an investment fund… MiFID only applies to
some of these products such as shares, bonds,
derivatives and units in investment funds. It does
not apply to deposits or loans, or to insurance
products. For those products which are covered by
MiFID, firms may offer you services such as
managing investments on your behalf, giving you
advice on investments and buying or selling
financial products.

One of the main purposes of the directive is to
harmonise investor protection throughout Europe.
The degree of investor protection that you will
receive is directly related to the reliance that you
place on the firm and on yourself. For example, if
your financial knowledge and experience are low
and you are asking the firm to advise you or to
take decisions on your behalf you will be afforded
the highest degree of protection.
MiFID sets three overarching principles that will
apply to firms when they are doing investment
business with you. These are:

• To act honestly, fairly and professionally, in
accordance with your best interests. This
principle protects you when you are dealing
with a firm that, as a professional, is in a stronger
position than you.

• To provide you with appropriate and
comprehensive information which is fair,
clear, and not misleading. This will help you
to understand products and services so that
you can make informed decisions and ensures
that you do not receive biased or confusing
information.

• To provide you with services that take account
of your individual circumstances. This is to
ensure that your investments correspond to
your investor profile and requests.

The MiFID Consumers Guide is Available To Download Here in Adobe PDF Format

If you wish you may also read the directives here and here