andbanc / Private Bankers


This is a Community regulation applicable to the provision and commercialization of investment services on financial instruments.

MiFID stands for Directive 2004/39 / EC on markets in financial instruments.

This Directive has been transposed into the legislation of the various countries of the European Union (e.g. through Law 47/2007, of 19 December and Royal Decree 217/2008, of 15 February in Spain), as well as in the Principality of Andorra, where its basic principles are covered by Law 8/2013, of 9 May, regulating organizational requirements and operating conditions of entities operating within the financial system, investor protection, market abuse and financial guarantee contracts.

One of the main objectives of the MiFID regulations (hereinafter MiFID) is to increase the degree of protection for investment services customers, as a result of the growing complexity of the investment products and services that are on the markets.

In this sense, MiFID obliges financial institutions to incorporate a wide range of standards to which they must adjust in terms of providing investment services, as well as to improve the levels of information that must be provided to the investors themselves.

Andbank has developed a document called the "Welcome Pack" that details pre-contractual information, such as information about our Institution and the services we offer, financial instruments, etc., which is available for you.

Likewise, in order to comply with this regulation, Andbank has adopted a Best Execution of Orders Policyand a Conflicts of Interest Management Policy.

We are attaching a document with a detailed description of the products and financial instruments from our catalogue that are affected by the MiFID, including a description of the risks inherent in these. (Investor Guide).

In terms of information regarding fees and expenses related to the investment services and products or instruments offered by Andbank, we advise you that our Rates Book is available for your perusal in our branches.


MiFID establishes a scheme that classifies customers into three different categories that aim to reflect their level of knowledge and experience in markets:

Retail customers, who are essentially private individuals acting as individuals, SMEs and receiving the highest level of protection provided for and the greatest scope of pre- and post-contractual information that must be provided to them.

Professional customers, who are institutional investors and large companies and are given a lower level of protection than retail customers on the assumption they have sufficient knowledge of financial markets and instruments to make their own investment decisions and understand and assume the risks therein.

Eligible Counterparty Customer, banks, savings banks, investment and pension funds; a basic level of protection is envisaged for this type of customer due to the fact they are institutions that, by their nature, have to act directly and frequently in the financial markets.

With the aim of providing maximum protection to our customers, Andbank classifies them as Retail customers by default, unless they are customers related to the financial system, who will then fall into one of the other categories. We are attaching a letter of assessment aimed at our Retail Customers

Retail customers can request to change their category to professional customer, which specifically implies expressly rejecting being treated as a retail customer and the associated level of protection, in addition to meeting two of the three requirements detailed below:

• having made transactions with significant volume in the securities market in the last 4 quarters with an average frequency greater than 10 transactions per quarter;

• having assets in securities deposited in financial institutions and in cash whose value is greater than 500,000 euros;

• occupying or having occupied for at least one year in the past a professional position in the financial sector that requires knowledge about the transactions planned.

Andbank reserves the right to award the classification above, according to the opinion of the banker as a legal requirement.


The MiFID regulations make a distinction between basic execution services and services that require prior assessment to ensure that the service and/or product is suitable in terms of the costumer's needs and/or appropriate to his or her level of knowledge and experience.

To meet this requirement, andbank has designed a MiFID test, which will be given to customers prior to any services being provided. The information obtained will be used exclusively for the assessments indicated.

Customers wishing to get more information may go to their relationship manager or private banker who, as always, will be at their service.

Below we are also including a list of FAQs related to the MiFID.


1.- What is an MiFID customer?

Those customers who are offered an investment or auxiliary service referring to a financial instrument that is regulated by the MiFID regulations.

2.- What is an MiFID product?

There are a series of MiFID products that are affected by the regulations and series of Non-MiFID products that are not affected by the regulations.

Non-MiFID products would mainly include loans, current accounts, passbooks and time deposits, insurance and pension plans.

Conversely, fixed income securities, equities, investment funds and similar collective investment institutions, derived instruments, portfolio management and financial advice are all affected by the rules.

3.- What is a retail customer?

Those customers who benefit from the highest level of investor protection. Under this classification, our Institution is obligated to:

• Request information from them according to the product and service we are going to offer them.

• Provide them with information to help in making their investment decisions.

• Execute their orders quickly and under the best terms.

• Confirm execution of their orders and give them regular information about their investments.

They may request to change their classification to a professional customer, which would entail less protection, provided that they meet the requirements established in Law 8/2013 in this area.

4.- What is a professional customer?

Any customers who have the experience, knowledge and qualification needed to make their own investment decisions and to properly assess the risks inherent in these decisions.

They may request to change their classification to retail customer in order to get a greater degree of protection.

In addition, they may request to change their classification to eligible counterparty to get a lesser degree of protection, provided that they meet the requirements established in Law 8/2013.

5.- What is an eligible counterparty?

Any legal entity that meets the requirements to be classified as a professional customer, and that additionally meets the following requirements:

• Banking institutions, specialised credit financial institutions (non-banking), investment financial institutions, collective investment bodies and their management companies, as well as domestic and foreign insurance companies.

• States and public administrations in general; public bodies that manage public debt; central banks: international and supranational bodies such as the World Bank, IMF, ECB, EIB and other similar international organisations.

Customers classified as eligible counterparties will benefit from complete freedom to take out products and services without any kind of additional process.

They may request to change to a category with greater protection; this change will normally be aimed at being classified as a professional customer, but they may also request a classification change to retail customer.

6.- How are customers rated?

There is an initial direct classification: legal entities that meet the requirements to be classified as professionals (large companies that on an individual scale meet two of the following requirements: total balance: €20M, net turnover: €40M, equity: €2M; authorised or regulated financial institutions; governments and bodies), the rest – legal entities that do not meet the requirements and individuals – will be classified as retail customers.

There is another indirect classification that occurs when a retail customer wishes to be considered as a professional customer, upon request, or because it is a legal entity that already meets the requirements established in the previous paragraph to be classified as professional according to the initial classification. This could also occur in the case of an individual who meets the requirements established by the MiFID regulations to change to a professional customer, or when a professional customer or eligible counterparty wants to be treated as a retail customer.

7.- How does a change in classification work?

Any change in classification must be requested in writing; therefore Andbank has standard change request forms available for its customers.

For changes in classification to categories with a lower level of protection, Andbank will inform the customer that this change in category implies a lower lever of protection, resulting from the existence of fewer obligations from Andbank, and it will have to verify that the information provided by the customer meets the requirements established by Law 8/2013.

Once Andbank has carried out the corresponding verification, it will inform the customer of the final acceptance or rejection for the change.

In the specific case of a retail customer who wishes to be treated as a professional, Anbanc will have to verify that two of the following requirements established by the MiFID regulations are met:

• That during the past four quarters, he or she has made transactions in significant volumes (greater than 125,000 euros) in the securities market, with an average frequency of 10 or more per quarter.

• That the value of cash and the financial investment portfolio he/she has is greater than 500,000 euros.

• That the customer holds or has held for at least one year a professional position in the financial system that requires knowledge about the services or transactions planned.

For changes in classification to categories with a higher level of protection, the change request will be automatically accepted by Andbank when it receives the request from the customer.

8.- What is the purpose of the "MiFID test"?

The purpose of this test is to get sufficient information from the customer about his or her knowledge and experience, financial situation and investment aims to recommend the products and transactions that are most suited to him or her.

Within the framework of advising on investment or on discretionary portfolio management, the products and transactions recommended must meet the following requirements:

Responding to the customer’s aims; the customer is able to financially assume the associated risks and has the experience and the knowledge needed to understand the risks involved in the investment transaction or service.

Within the framework of marketing financial products, the aim of the test is to determine the customer’s knowledge and investment experience, so Andbank can assess whether a product is suitable or not for a customer, taking his or her ability to understand the risks resulting from the investment into account.

9.- What is pre-contractual information and what does it include?

It is the information that must be given to customers or potential customers prior to providing the investment service or activity.

This information must be clear, impartial and not misleading, and it must be provided sufficiently in advance so the customer has the time to take it in and respond to the information, as well as to read it and understand it before making an investment decision.

The pre-contractual information to be provided to retail customers by Andbank is divided into two groups:

• Welcome Pack: includes generic information on customer classification, on the Institution and the services it provides, on the safeguarding of financial instruments and customer funds and on order execution and conflict of interest management policies.

• Investor Guide: includes information relating to the nature and risks of financial instruments.

Professional customers will only be informed of their classification and the Best Execution of Orders Policy.

10.- What is the Best Execution of Orders Policy?

This is the policy adopted by Andbank to get the best execution, i.e. to guarantee that orders are filled in the most favourable conditions for the customer.

11.- What does Order Management consist of?

This is the set of procedures and systems adopted by Andbank to deal with customer orders.

These procedures and systems, described in this policy, are aimed at recording and assigning the orders to customers quickly and precisely, as well as ensuring fast and sequential execution (with the exception of market conditions or specific instructions from the customer).

12.- What is post-contractual information?

This is the information Andbank must provide its customers about the services provided, i.e.:

• Information regarding order execution.

• Regular information on the status of portfolio management.

13.- What is a conflict of interest?

There is a conflict of interest in situations where the impartiality of the people who work at Andbank Group’s actions may have been compromised, in the opinion of a neutral observer, which may adversely affect customer interests.

14.- How is a conflict of interest managed?

Andbank has established a Conflict of Interest Management Policy that establishes a set of procedures and measures aimed at:

• Identifying the potential conflicts of interest that could arise when providing investment services and auxiliary services.

• Managing these conflicts of interest by preventing damage to customer interests.