On the new legal acts of the European Union

16/01/2018 18:55

Please be informed that in 2018 a range of new EU legal acts became effective in Latvia. For your convenience, we have prepared a brief summary of the basic aspects.

Markets in Financial Instruments Directive II (MiFID2) will foster stability and transparency of investment products and financial instruments, as well as protection of your funds.

  • First visible changes will relate to the amount of documents to be filled out. Prior to acquiring financial products, Norvik Banka will have to assess the suitability of this product for the client – the client’s investment objectives, knowledge, experience and financial condition.
  • The transparency of transactions will be one of the most significant changes. MiFID2 foresees the openness of all direct and indirect commission fees.
  • Moreover, the extended list of requirements as regards persons involved in a transaction (banks, brokerage firms, stock exchanges, etc.) that will ensure a better performance of transactions.

Payment Service Directive (PSD2) will open a financial market providing you with an opportunity to receive a wider range of services.

  • Controlling your financial resources and performing transactions will be even easier (even if you have accounts in several banks).
  • The decrease in payment service prices is expected.
  • Such changes will foster integration of new technical solutions.

General Data Protection Regulation (GDPR) will improve the processing of your personal data and step up their protection.

  • The level of your data protection will increase, as the service provider will be authorised to request only personal information that is necessary to ensure service provision.
  • Tighter restrictions as regards personal data storage periods are introduced. As contractual relationships are over, the service provider will be prohibited to use the data of the respective person and will be obliged to destroy data after a certain period.
  • The personal data will not be forwarded to other organizations or abroad without due protection.

To introduce new provisions, Norvik Banka improves current systems and puts large efforts to develop new processes and systems. If Norvik Banka requires additional information from the clients in connection with the requirements of the aforementioned regulatory enactments, we will contact you individually.

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