Saxo Bank to implement special IB solutions as MiFID II rules arrive early in Denmark

Maria Nikolova

Saxo Bank A/S cannot pay inducements to IBs providing discretionary portfolio management to the customers or independent advice, as of July 1, 2017.

MiFID II is currently on top of the agenda for investment firms in Europe. FinanceFeeds has been informing its readers on the latest developments concerning the implementation of the rules and the solutions to help companies comply with the new requirements. One of the key dates in this respect is January 3, 2018 – the date when the MiFID II rules come into force.

One of the provisions of MiFID II bans investment companies from receiving and keeping any fees, commissions or other payments in money or in kind from (inter alia) investment funds in connection with the provision of discretionary portfolio management to the customers. This particular rule, known as a ban on IB inducements, will come into force earlier in Denmark – on July 1, 2017.

Saxo Bank is implementing measures to comply with the new requirements.

In line with the new rules, Saxo Bank A/S cannot pay inducement to IBs providing discretionary portfolio management to the customers or independent advice, as of July 1, 2017. The company plans to implement a selection of solutions that will enable its IBs to work within certain boundaries or move to a non-inducement fee model.

All IBs will be contacted by their Account Manager within the next weeks and will be provided with more detailed information with regards to their own situation.

Saxo Bank explains that the ban does not apply to payments in kind of minor value, which may increase the quality of the service provided to the customer, and which cannot prevent the investment company in question from complying with its duty to act in the customer’s best interest.

According to the Danish Regulation the companies that are not allowed to receive and keep any fees etc. in connection with provision of discretionary portfolio management to the customers and independent advice include: banks, investment firms, and investment management companies with authorizations as investment firms.

Apart from the above mentioned cases, companies are allowed to pay or receive a fee or commission in connection with the provision of an non-independent investment services or an ancillary service, if the payment aims to improve the quality of the relevant service to the client and does not counteract with the company’s duty to act honest, fairly and professionally in accordance with the best interest of its clients.

Read this next

Institutional FX

Euronext reports double-digit growth in FX volume

Pan-European exchange, Euronext has reported a 10 percent rebound in the average daily volume on its spot foreign exchange market. The ADV figure stood at $19.6 billion in January 2022, which is up from December’s $18 billion.

Digital Assets

Voyager subpoenas FTX’s inner circle over Alameda loan

Bankrupt crypto broker Voyager Digital, represented by law firm Kirkland & Ellis, is seeking court approval to subpoena Sam Bankman-Fried’s inner circle, as well as Alameda Research’s former executives.

Retail FX

AvaTrade seals sponsorship deal with F1’s Aston Martin team

Dublin-based forex broker AvaTrade today announced that it has concluded a sponsorship deal with Formula One’s Aston Martin Cognizant team that entails sponsorship rights and other marketing benefits.

Executive Moves

M4Markets onboards Invaxa CEO Marios Antoniou as COO

Seychelles-regulated brokerage firm M4Markets has appointed Marios Antoniou, who has a colorful career within the foreign exchange industry, in the capacity of its Chief Operations Officer.

Digital Assets

GK8 now allows clients to control their digital assets as they would their fiat

“As the institutional market is increasingly turning to self custody, our policy engine empowers them to automate transactions, approvals, and even crucial workflows, while providing the highest degree of security, consistency, governance and control.”

Digital Assets

Retail CBDCs in the UK: “Welcomed” by CryptoUK and R3, but “Dystopian” for ETC Group

“At this stage, we judge it likely that the digital pound will be needed in the future. It is too early to decide whether to introduce the digital pound, but we are convinced preparatory work is justified”, said the BoE and HM Treasury.

Institutional FX

Centroid taps Iress API to provide retail brokers with real-time market data

“It has always been a challenge to have an efficient, elegant solution for market data and order execution for retail brokers, but with Iress we have found absolutely the right partner to add to our client offering.”

Digital Assets

Ramp launches FCA-approved off-ramp product, onboards Brave, Trust Wallet, Ledger

“To obtain and maintain our FCA registration, we must meet and operate within their strict anti-money laundering and counter-terrorist financing standards. This is a huge achievement for us, as compliance is a cornerstone of our business and what we stand for.”

Institutional FX

State Street launches FIX API for Fund Connect ETF platform

“Expanding from proprietary APIs to the FIX industry standard will bring us closer to our goal of 100% digital interactions. This is another example of innovations we’ve brought to our operating model as we celebrate 30 years of servicing ETFs since the launch of SPY.”