BNP Paribas and MiFID

03 July 2007 ---

What is MiFID ? MiFID (Markets in Financial Instruments Directive) is a far reaching piece of EU legislation which sets out a comprehensive regulatory regime covering investment services and financial markets. It contains measures which will change the organisation and functioning of investment firms, facilitate cross border trading and aims to encourage the integration of EU capital markets. In addition, it will be changing the rules with which investment firms must comply in the fields of investor protection and market transparency. MiFID brings with it many advantages, but there is also an amount of administration which firms must undertake. What are the immediate implications of MiFID for our clients? MiFID requires BNP Paribas to: • Classify each of its clients in accordance with set criteria. The classification will determine which MiFID requirements will apply to each client • Communicate certain information to clients regarding transactions and business processes • Obtain clients’ consent in relation to some of these requirements. This will depend, in part, on the selected classification. When will MiFID be effective ? MiFID will be implemented by 1st November 2007 For further information on MiFID Please download the following informative documents prepared by BNP Paribas Compliance Department. Alternatively, please call your usual contact at BNP Paribas.

Official date : 03/07/2007