1. MIFID II, Client profile and investment strategy / July 2018

This text is intended to provide information pursuant to the Markets in Financial Instruments Directive (“MiFID”). This Directive was later modified to strengthen investor protection. Its updated version is now commonly referred to as the MiFID II. Any reference to the MiFID Directive in this text should be understood to mean the MiFID II Directive.

The Directive resolutely protects the interests of the investor insofar as the management firm is obliged to act based on global and in-depth consideration of an investor’s particular situation. This is achieved by using a client classification system. Not all clients have the same knowledge of or experience with financial instruments and their related risks. Clients are classified in one of three categories (private or retail clients, corporate clients, or eligible counterparties) to ensure each client a suitable level of protection. Private investors, as opposed to corporate investors, are entitled to the highest level of protection. Furthermore, the MiFID allows category changes (private to corporate, for example) with relative flexibility provided that certain conditions are met.
Prior to investing in financial instruments, clients must fill out a form with their manager to determine the extent of their knowledge and experience in investment products; their investment objectives and horizon; their financial situation and risk tolerance, in order for OPPORTUNITE to ensure that the products and services its offers are suited to the client’s profile and that the management firm can act in their best interests.
More generally, collected information is used to choose an investment portfolio strategy in line with the investor’s profile.

The Directive protects and informs the client in the following areas:

  • Banking institutions are now obliged to submit a detailed report to their client informing them of the costs and fees related to the investment services, along with all costs and fees related to the financial instruments.
  • Financial sector professionals must establish a “best execution policy” based on a comparison of the offers and prices of different service providers.
  • Professionals must also establish a strict conflicts of interest policy.

Full compliance with these obligations is strictly and systematically monitored by regulation officials and authorities.

Myriam HENRY

2. The client relationship / Out-of-court dispute settlements / July 2018

The CSSF is competent to receive complaints from customers of the professionals subject to its supervision and to act as an intermediary in order to seek an amicable settlement of these complaints.

The CSSF acts in its capacity as a dispute resolution body, notably pursuant to European legislation relating to the out-of-court resolution of consumer disputes that were transposed into Luxembourg national law and introduced into the Consumer Code in 2016.

The CSSF is registered on the list of alternative dispute resolution (ADR) bodies within the meaning of Article 431-1 of the Consumer Code and on the list of ADR entities established and published by the European Commission.

The complaints are handled by the “Consumer Protection / Financial Crime” legal department.

Opening an out-of-court complaint resolution procedure with the CSSF is subject to the condition that the complaint has been dealt with by the management of OPPORTUNITE Luxembourg S.A.beforehand. In this respect, the complaint must have been first submitted in writing to the manager responsible for complaint handling, Mme Catherine WAJSMAN.

In the case where one month after having sent your complaint to the manager responsible for complaint handling, you have received neither a satisfactory answer nor an acknowledgement of receipt, you can apply for an out-of-court resolution of your complaint with the CSSF.

DIn this case, please use the form published on the CSSF website and follow the instructions specified therein:
http://www.cssf.lu/fr/consommateur/reclamations/

Myriam HENRY

3. Conflicts of interest policy

OPPORTUNITE’s conflicts of interest policy is aimed at establishing all reasonable measures implemented to identify potential conflicts of interest between OPPORTUNITE and its subsidiaries (including the interests of its directors, staff, and where applicable, agents or any person directly or indirectly linked to the company by way of control) and between its obligations to each Client and between the different interests of two or more Clients.

This policy determines the effective organisational and administrative arrangements made by OPPORTUNITE to ensure that all reasonable measures are taken to protect the interests of its Clients from conflicts.

Implemented measures reflect the size and structure of OPPORTUNITE as well as the nature, scale and complexity of its activities.

OPPORTUNITE ensures that a Chinese Wall exists between investment research activities and those involving management and the negotiation of terms with sales partners.

OPPORTUNITE’s obligation in respect of the Policy is an obligation of means, not an obligation of result. As such, where organisational and administrative arrangements are not sufficient to ensure, with reasonable certainty, that risks of damage to client interests will be prevented, OPPORTUNITE will clearly disclose the general nature and/or sources of conflicts of interest to the client before undertaking business on their behalf.

OPPORTUNITE keeps a record of any service provided and every transaction made in accordance with current regulation to ensure the monitoring of its obligations in managing conflicts of interest.

Myriam HENRY