Markets in Financial Instruments Directive II (MiFID II)

On this page we would like to inform you on how Yapi Kredi Bank Nederland N.V. (hereafter: YKB) implemented the Markets in Financial Instruments Directive II (MiFID II) legislation that entered into force on 3 January 2018.

MiFID II is the successor of the MiFID directive, which came into force in 2007. This new European directive has been developed to further increase market transparency, increase the level of investor protection and intends to improve the level playing field between market participants. We are committed to requirements under MiFID II so that our clients benefit from the opportunities MiFID II has to offer.

In order to achieve this, we have adjusted our policies and procedures and would like to inform about the main requirements that may affect our business relationship with investment clients. MiFID II covers almost all financial instruments and investment services provided by YKB and thus will be applicable only for ‘investment clients’.

Please find below the MiFID II arrangements in summary.

Client Classification

Under MiFID II, investment clients are assigned to one of the three MiFID client categories:

  • Retail Clients
  • Professional Clients
  • Eligible Counterparties (ECP)

The purpose of the classification is to acknowledge different types of clients on which different levels of investor protection is applied and to ensure that appropriate information about the investment products and investment services are provided to clients.

Services in scope of MiFID II

We, as YKB, provide the following services to our investment clients, which fall in the scope of MiFID II:

  • Execution of orders on behalf of clients;
  • Reception and transmission of orders in relation to one or more financial instruments (RTO);
  • Investment Advice (non-independent advice only).

Suitability Assessment

The suitability assessment is in place to enhance investor protection by ensuring that YKB acts in the clients’ best interests. Suitability has to be assessed against clients’ knowledge and experience, financial situation and investment objectives. In order to achieve this, we have to obtain the necessary information from our clients. This thorough assessment of client specific information is called the Suitability Test. Based on this, YKB should assess whether the requested investment service or financial instrument is suitable for the client.

Best Execution and Order Handling

While executing transactions of clients YKB always tries to achieve the best results possible for the client. MiFID II sets out additional requirements with the purpose to increase the investor protection and the efficiency of the best execution assessment. Based on this we have updated our Best Execution Policy. Also as part of this, we will make available to the public, without any charge, information related to the quality of execution of transactions and the “top five” execution venues on which clients’ orders have been executed in the preceding year.

Inducement Ban

The inducement ban under MiFID II was already an obligation under the existing Dutch law. YKB takes all appropriate steps to identify and prevent or manage conflicts of interest between the Bank, the clients and third parties caused by the receipt of inducements from these third parties. Therefore, YKB does not provide or receive any fees related to the provision of an investment service or ancillary service from third parties.

Product Governance

MiFID II further improves investor and market protection with stricter rules regarding product governance. Based on MiFID II, the decision of developing a new product should be made in a diligent and honest way where the duty of care towards clients and client interest is explicitly taken into account. Based on the Product Approval and Review Procedure of the bank, we will take appropriate steps so that financial instruments are marketed to a pre-determined target market of clients that is specific to a given financial instrument. This could also mean that YKB may not be able to sell a certain product to a certain type of client.

Information on Costs and Charges

MiFID II sets out additional requirements with the purpose to make available more-in-depth information and to make investors aware of how costs will affect their investments return. Information must include all costs and associated charges relating to both investment and ancillary services.

Accordingly, YKB has established arrangements to ensure that our clients receive an overview of costs and charges prior to the provision of the trade in a financial instrument. we will present the costs and charges aggregated in order to allow clients to understand the overall cost of their investment and its cumulative effect on the return of the investment.

Legal entities: LEI code

To be able to make use of investment services YKB provides, legal entities should have a Legal Entity Identifier (LEI) code assigned which should be shared with us.

The Legal Entity Identifier (LEI) is the International ISO standard 17442. LEI’s are identification codes that enable consistent and accurate identification of all legal entities that are parties to financial transactions, including non-financial institutions.

If you represent a legal entity and have not yet requested or communicated your LEI code, you are advised to provide us your LEI code as soon as possible.

Recording of Telephone Conversations

In line with the provisions stipulated in the Directive (EU) No 65/2014 and the Regulation (EU) 2017/565; all telephone conversations and electronic communications relating to activities intended to result in the conclusion of a transaction or the provision of client order services are being recorded - even if they in fact do not lead to a transaction. 

The period of time for the retention of a record shall begin on the date when the record is created. The records shall be kept for a period of five years and, where requested by the competent authority, for a period of up to seven years.

Do you have any questions?

We acknowledge that you may have more detailed questions regarding MiFID II or any other arrangements related to this issue. We are happy to answer any questions you may have on the impact of the MiFID II on your relationship with us. Please contact your contact person within YKB in such case or send an e-mail to


Best Execution Policy
Order Handling Consent
Execution Quality Report 2017
Execution Quality Report 2018
Execution Quality Report 2019
Execution Quality Report 2020
Top Five Execution Venue 2017

Top Five Execution Venue 2018
Top Five Execution Venue 2019
Top Five Execution Venue 2020

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