Amendments to general terms and conditions and book-entry accounts as of 1 January 2018

The EU’s new MiFID II directive, which enters into force next year, will have an impact on our customer agreements. We have informed our customers of the effects of the new regulation on the terms and conditions of their agreements. The amendments do not require any action on our customers’ part. 

See the new terms and conditions

Key changes

Investment advisory services 

Legislation defines investment advisory services provided by a bank to its customers as being non-independent by default, because a bank offers investment advice principally in relation to its own products or products to which the bank has close connections. The bank evaluates the suitability of investment products for the customer separately in each investment advice session but does not provide the customer with a regular evaluation of the suitability of the investment products recommended to the customer unless otherwise agreed with the customer.

Sales commissions received by Nordea from partners

The purpose of the incentives is to improve the quality of the service offered to customers. Nordea implements this, for instance, by using revenue from incentives towards the continuous development of services and offering more diverse products.

Before any service is offered to the customer, information is separately provided concerning the incentives related to that service (in EUR). If the precise amount is not known, the customer is told how the incentives are calculated, and the customer is informed of the precise amount of the incentive in EUR afterwards. 

Recording conversations and other communications

The bank will in the future record conversations and other communications between the bank and the customer that lead or may lead to the bank receiving, transmitting or executing customer orders. The bank has the right to use recordings of phone conversations and other communications as evidence in the resolving of any disputes that may arise and for other purposes, of which the bank will separately inform the customer. 

The bank is obliged to disclose such recordings to the competent authorities if they so request. Copies of any recorded conversations and communications exchanged with the customer will be kept available on request for five years. The recordings will be retained for seven years if so requested by the competent authorities.

Citizenship of a personal customer in transaction reporting

With the new legislation, the bank’s obligation to report to the authorities on trading in investment products will expand. The bank will be required to include the citizenship of personal customers in its reporting, and therefore the bank must have information on all of a personal customer’s citizenships.

Companies and other entities will need a Legal Entity Identifier (LEI) for engaging in securities transactions

Companies and other entities will need a Legal Entity Identifier (LEI) in order to trade in listed shares, bonds, exchange-traded funds (ETFs) and derivatives. Introduced on the basis of EU regulations, an LEI can be obtained from the Finnish Patent and Registration Office for a fee. 

Changing the terms and conditions of agreement

If the bank exercises its right to change the terms and conditions of agreement, the bank will inform the customer by letter or in Netbank of any changes that will increase the customer’s obligations or restrict the customer’s rights. 

Notifications sent by the bank

A notification sent by mail is considered to have been received by the recipient no later than seven (7) days from the date when it was sent, and an electronic notification is considered to have been received on the date when it was sent. In the case of customers permanently resident abroad, a notification sent by mail is considered to have been received by the recipient within 14 calendar days of the date when it was sent, unless otherwise proven.