MiFID Information brochure

Transcription

1 MiFID Information brochure for clients of Raiffeisen Bank Polska S.A.

2 TABLE OF CONTENTS PART 1. A guide to MiFID 4 I. What is MiFID? 4 II. The process of providing investment services 4 A. Pre-trade 5 1. Segmentation 5 2. Adequacy and suitability test 5 3. Information provided by the bank before making an investment 5 B. Implementation of investment services 6 4. Execution of orders 6 5. Confirmation of concluding transactions 6 C. Ongoing requirements 6 6. Managing conflicts of interest 6 7. Safeguarding a client s financial assets and money 6 8. Complaints handling 6 PART 2. MiFID standards in the activities of Raiffeisen Bank Polska S.A. 7 I. Categories of clients 8 A. Retail clients 8 B. Professional clients 8 C. Eligible counterparties 9 II. Acting in the best interests of a client 10 III. Managing a conflict of interest 11 IV. The principles for accepting and transferring financial and nonpecuniary benefits. 12 V. handling of complaints 13 VI. InformationS about the bank 15 VII. NOTES 17 2

3 MiFID Information brochure for clients of Raiffeisen Bank Polska S.A. Dear reader, This brochure is intended for those clients of Raiffeisen Bank Polska S.A., who have invested or are intending to invest in financial instruments, investment products or are using or intend to use investment services through the intermediary of our bank 1). It deals with the most important European Union directive in this field on MiFID ( Markets in Financial Instruments Directive ) and presents the draft Polish regulations to implement the Directive in the Polish legal system. 2) In this brochure we shall call the provisions of these drafts the MiFID regulations. The main objective of the MiFID regulations is to protect the interests of clients. This objective is achieved by increasing harmonisation in the offers and implementation of investment services and increasing the transparency and competitiveness of investment companies. They are obliged to operate in accordance with the best perceived interests of clients, i.e. honestly, fairly and professionally. Another significant obligation of investment companies clearly defined in the Directive s provisions is the identification, elimination or management of conflicts of interest, which might occur between the bank, a person connected with the bank and a client of the bank or group of clients. The provisions of the MiFID introduce a coherent legal framework for financial markets and investment services in the countries of the European Union, as well as Iceland, Norway and Liechtenstein. MiFID relates to investment services and financial instruments, including among others, shares, bonds, money market instruments, derivatives, investment funds or asset management services. This brochure contains detailed information on the objectives and areas of application of MiFID, including a presentation of the benefits for clients and a description of the activities of Raiffeisen Bank Polska S.A. undertaken in accordance with the provisions of MiFID. 1) including Brokerage House of Raiffeisen Bank Polska S.A. 2) The bank is obliged to respect domestic laws, and in particular: the ordinance of the Minister of Finance on the procedure and conditions for the activities of investment companies and banks, as specified in article 70, section 2 of the act on trading in financial instruments, and custodian banks; The ordinances determining the technical and organisational conditions for investment firms and custodian banks and the conditions for the estimation by brokerage houses of internal capital and reviewing the valuation process and maintaining this capital, which incorporate into domestic law the provisions of the European Parliament concerning financial instruments, are as follows: Directive 2004/39/EC of the European Parliament on markets in financial instruments; The Commission Directive introducing implementing measures for Directive 2004/39/EC of the European Parliament and Council in relation to the organisational requirements and operating conditions for investment firms and terms defined for purposes of this Directive; The Commission Regulation implementing the executive measures for Directive 2004/39/EC of the European Parliament and Council in relation to investment firms with respect to record keeping, transaction reporting, market transparency, admission of financial instruments to trading, and the definitions of terms for the purposes of this Directive. 3

4 PART 1. A guide to MiFID I. What is MiFID? The abbreviation MiFID stands for Markets in Financial Instruments Directive. 3) The directive aims to increase the degree of harmonization of financial services in the European Union and Iceland, Norway and Liechtenstein, which seeks to guarantee investors the highest level of protection for their investments in various financial instruments. The provisions of the directive are implemented into the legal systems of the countries listed above through domestic legislation. All providers of investment services or services connected with instruments and financial markets are obliged to comply with the provisions of MiFID. The provisions of the directive are implemented by Raiffeisen Bank Poland SA (hereinafter in this brochure called the bank). In accordance with the provisions of the directive, any person offering investment services is required: to act honestly, fairly and professionally and in accordance with their client s best interests; to provide relevant and complete information, which is accurate, clear and not misleading; to provide clients with services tailored to their specific investment needs. II. The process of providing investment services The bank s clients can purchase or sell financial instruments and investment products through the intermediary of the bank, as well as take advantage of investment services such as: custodian services, and asset management. The provisions of MiFID differentiate the following stages in the provision of investment services: pre-trade; during and after the investment. In both cases the bank is obliged to carry out the activities specified in the Directive. Figure 1. Stages in the investment process A. Pre-trade B. During and after the investment 1. The bank conducts the process of segmenting clients 2. The bank conducts an adequacy test in relation to clients 3. The bank provides clients with information on the scope of the services necessary to take investment decisions 4. The bank passes a client s instruction for execution while retaining the principle of acting in the best interests of the client 5. The bank is required to provide receipts and statements of a client s assets stored or recorded at the bank C. The bank s requirements during the whole process of providing investment services 6. Information on the process for managing conflicts of interest 7. Safeguarding the client s financial assets and money 8. Complaints handling 3) The MiFID Directive is Directive 2004/39/EC of the European Parliament and Council of 21st April 2004 on markets in financial instruments, amending Council Directive 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and Council and repealing Council directive 93/22/EEC (Official Journal L 45 from 30/04/2004, page 1). The executive acts to the MiFID Directive are: Commission Directive 2006/73/EC of 10th August 2006 introducing implementing measures for Directive 2004/39/EC of the European Parliament and Council in relation to the organisational requirements and operating conditions for investment companies and defined terms for the purposes of this directive (Official Journal L 241 from 2/9/2006, page 26; Commission Regulation (EC) No. 1287/2006 of 10th August 2006 introducing implementing measures for directive 2004/39/EC of the European Parliament and Council in respect of the obligations of investment firms for record keeping, transaction reporting, market transparency, admission of financial instruments for trading and defined terms for the purposes of this directive (Official Journal L 241 from 2/09/2006, page 1). 4

5 A. Pre-trade 1. Segmentation The bank qualifies clients into one of the following categories: Retail clients, Professional clients, Eligible counterparties. Underlying such client segmentation is the recognition that different types of clients, depending on the level of experience, knowledge and expertise and ability to independently evaluate the investment risk in the use of investment services and financial instruments, should be provided with a different level of protection and should be provided with appropriate information. Detailed information on the conditions laid down for each category are shown in Part II of the brochure, (page 8). 2. Adequacy and suitability test In the next stage, the bank conducts an adequacy test with respect to retail clients. The bank must ensure that the investment service or financial instruments are adequate for the client. Adequacy means at least an understanding of the product by the client, in particular any risks associated with a given product or service. Therefore, an assessment of the knowledge and experience of the client is required in relation to financial instruments, investment products and services, and in particular complex investment products and services. The result of the test is the determination of which instruments of a similar level of risk and characteristics may be considered appropriate for the client in question. In the case of retail or professional clients using asset management services or investment consultancy, the manager is obliged to conduct a suitability test (prior to commencing the service), which apart from an analysis of the client s knowledge and experience, also examines such questions as: the objective, the customer s investment horizon, the preferences regarding the acceptable level of risk and the client s financial position including an analysis of the sources and amounts of regular income, assets held (including liquid assets), investments, real estate and fixed financial obligations. The recommendation presented to the client should implement the client s investment objectives, should not exceed the level of risk accepted by the client and should be of a nature enabling it to be understood and an assessment to be made of the risk associated with it, taking into account the knowledge and experience of the client. The provisions of MiFID primarily provide retail clients with greater protection. This relates to two issues: information on financial instruments (including related investment risk, fees and costs) and information on the adequacy of the product or service. The bank must frequently advise a client not to purchase specific financial instruments or present a documented warning if a client decides nevertheless to carry out the transaction. In the case of transactions with professional clients, the bank may consider that the client has the necessary knowledge and experience in relation to the transaction in question and is able to bear the associated investment risk. MiFID provisions, however, assume that a client, who has so far benefited from a specific type of product or service, has the experience and knowledge necessary to understand the risks associated with that product or service. In this event an evaluation of general adequacy is not required. 3. Information provided by the bank before making an investment In accordance with the provisions of MiFID, all the information received by clients should be accurate, unambiguous, not misleading, and understandable for the group of clients to whom they are addressed. This principle refers both to the content of the information and to the way it is presented. Before making the investment the bank is obliged to provide, among others, the following information: agreements defining the basic rights and duties of the client and the bank; information about the bank and the services offered by the bank; information on asset management for the purposes of governance, risk, product types and transactions, which may be found in the portfolio and the methods and frequency of valuation of assets; information about financial instruments, investment services and products to explain the nature and risks associated with an investment; information on all direct and indirect costs and how to calculate them (current or paid fees and commissions) associated with investments in financial instruments. 5

6 B. Implementation of investment services 4. Execution of orders In accordance with the provisions of MiFID an order to buy or sell a financial instrument offered by a client and communicated to the bank should be executed immediately and in the order of acceptance. Further details of the execution of orders by the bank can be found in Part II of the brochure (page 10). 5. Confirmation of concluding transactions In executing orders, the bank should provide a retail client with information concerning the execution of the order immediately after its execution, but no later than the end of the working day following the date on which the order was executed. If the order is executed through another entity, the bank shall provide information no later than the end of the first working day following the date on which it was received from that entity. In providing storage and registration services for financial instruments and conducting cash accounts, the bank is required to provide the client with data giving information on the stored or registered assets. C. Ongoing requirements The provisions of MiFID impose permanent organisational requirements on banks. Some of these requirements are especially relevant for clients: 6. Managing conflicts of interest The bank is obliged to proceed in accordance with their client s best interests. For this reason it applies effective measures to prevent any conflict of interests that could have an adverse impact on clients. In providing these services, the bank avoids placing the interests of some clients or their own interest above the interests of other clients. The policy of counteracting a conflict of interest at Raiffeisen Bank Poland S.A. is described in detail in Part II of the brochure (page 11). 7. Safeguarding a client s financial assets and money Financial assets and cash, entrusted to the bank, are protected by: separating them from their financial assets and the bank s cash, and the cash of other clients; keeping accurate records and carrying out regular account reconcilliations for clients; sending a client a statement at least once a year with details of the financial assets and money held on the client s behalf. 8. Complaints handling The bank is required to establish effective and transparent procedures for the handling of complaints. After receiving a complaint from a client, the bank registers it together with the steps taken to resolve the problem and rectify the cause of the complaint. Detailed information on the resolution of complaints can be found in Part II of the brochure, on page 13. 6

7 PART 2. MiFID standards in the activities of Raiffeisen Bank Polska S.A. The purpose of the MiFID standards implemented by the bank is: To provide protection to the bank s clients with respect to transactions in financial instruments; To ensure professional standards of quality for investment services provided by the bank affecting the growth of client satisfaction and trust; To provide the basis for the development of internal procedures in the best interests of the bank s clients; To ensure compliance with the requirements of the Financial Supervision Commission. The financial instruments subject to MiFID and offered by the bank include: Treasury bonds, Treasury bills, Cash bills, Debt bills, Deposit certificates, Commercial bonds, Foreign debt instruments, Shares and other equity securities (pre-emptive rights, rights to shares, etc.), Term instruments and derivatives (IRS, CIRS, options, FX swaps, FX forwards), Investment funds units, Investment certificates, Dual currency deposits. The bank reserves the right to use MiFID regulations for other products in the bank s offer. The investment services provided by the bank include: Buying and selling financial instruments, Accepting and passing orders with respect to financial instruments (on the basis of a power of attorney from a client), Custodian services, Loans to conduct transactions in financial instruments, Providing transactional recommendations (portfolio management financial portfolios), and brokerage services from the Brokerage House of Raiffeisen Bank Polska S.A.: accepting and passing orders for the purchase or sale of financial instruments, performing orders for the purchase of sale of financial instruments on the account of the party submitting the order, acquiring or disposing of financial instruments on its own account, investment advice, offering financial instruments, the provision of services relating to the execution of underwriting contracts and service contracts, or concluding and executing other contracts of a similar nature, if they relate to financial instruments, storing or registering financial instruments, including managing securities accounts and managing cash accounts, advice for businesses on capital structure, corporate strategy and other issues related to such structure or strategy, advisory and other services with respect to mergers, splits and acquisitions, currency conversion, where this is associated with brokerage activities, the preparation of investment analyses, financial analyses and other recommendations of a general nature relating to transactions involving financial instruments, the provision of additional services connected with investment and underwriting services. 7

8 I. Categories of clients In accordance with the provisions of MiFID the bank s clients are classified into three categories: A. Retail clients This category includes individuals and companies that do not meet two of the following conditions: a) the balance sheet total of a business amounts to at least 20,000,000 euro, b) revenues from sales of at least 40,000,000 euro, c) equity or own funds of a business of at least 2,000,000 euro. Evidence of compliance with the above conditions is the data from the financial statements for the last year. The scope of information and protection available to retail clients prior to commencing the use of an investment service by the bank includes: a) Information relating to the the bank s policy for the management of conflicts of interest; b) Information on the policy to act in the best interests of clients with respect to investment services and trading in financial instruments; c) Information containing a detailed description of the nature of the financial instruments offered by the bank and the associated risk; d) Information on the bank and the bank s activities, and information related to the service to be provided to the client. A retail client has the right to request a change of category to professional client. A change in category occurs when the client meets the conditions for being eligible for the professional category of client, if the client s application is positively considered. B. Professional clients This category includes: a) entities conducting activities on the financial markets: banks; investment companies; insurance companies; investment funds of investment fund companies; pension funds or pension companies;. commodity brokers, agents who, as part of their business, conclude transactions on their own account on futures markets, options or other derivatives, or in the money markets for the sole purpose of hedging positions taken on these markets, or acting for that purpose on behalf of other members of such markets if responsibility for the execution of the obligations arising from these transactions is borne by participants clearing those markets; other financial institutions than those listed above; institutional investors other than those listed above, conducting regulated activities on the financial market; entities outside the Republic of Poland conducting equivalent activities to the activities conducted by the entities specified above; b) businesses satisfying at least two of the following requirements, wherein the equivalent to the amounts indicated in euros is calculated using the average exchange rate of the euro determined by the Polish National Bank on the date of drawing up the financial statements of the business: the balance sheet total of a business amounts to at least 20,000,000 euro; the achievement by a business of revenues from sales of at least 40,000,000 euro; the equity or own funds of a business amount to at least 2,000,000 euro. c) national and international public institutions: government and local government entities; public bodies that manage public debt; central banks; the World Bank; 8

9 the International Monetary Fund; the European Central Bank; the European Investment Bank; other international organisations performing similar functions; other institutional investors whose main business is investing in financial instruments, including entities engaged in the securitisation of assets or concluding other types of financial transactions. d) a retail client may be classified as a professional client, if he meets at least two of the following requirements: I. II. III. he has concluded transactions with a value of at least the equivalent in zloty of 50,000 euro each, on an applicable market, with an average frequency of at least 10 transactions per quarter, over the last four quarters; the value of the client s portfolio of financial instruments, including cash including in the portfolio, is at least the equivalent in zloty of 500,000 euro; he works or has worked in the financial sector for at least one year at a position which requires professional knowledge relating to transactions in financial instruments or investment services, which would be provided by an investment firm for him on the basis of a contract concluded for this. It is essential to note that equivalent amounts expressed in euro, as specified, are determined using the average exchange rate of the euro published by the Polish National Bank in effect on the day preceding the date of the client submitting his request for a change in category. The following constitutes evidence of fulfilment of the above conditions: extracts from operations carried out in a financial instruments account confirming the conclusion of the transaction and the value of the portfolio in terms of the condition specified in points I and II ; certificate of employment, civil contracts defining the scope of responsibilities, or relevant documents, translated into Polish or English, confirming the length of employment in the financial sector and the knowledge possessed with respect to financial instruments, with respect to satisfying the condition specified in point III. The scope of information and protection available to professional clients prior to commencing the use of an investment service by the bank includes: a) a)information relating to the the bank s policy for the management of conflicts of interest; b) information on the policy to act in the best interests of clients with respect to investment services and trading in financial instruments; c) information containing a general description of the nature of the financial instruments offered by the bank and the associated risk. A professional client has the right to change category to a retail client or eligible counterparty by submitting a request for a change in category. A change in category occurs if the client s application is positively considered. C. Eligible counterparties This category includes financial institutions and professional clients, who have expressed their consent to be included in the category of Eligible counterparties. The category of Eligible counterparties includes the aforementioned entities, only in the event that the bank concludes transactions with these entities or acts as intermediary in concluding transactions for the following investment services: a) providing the service of executing orders, b) providing the service of accepting and transferring orders, c) the purchase or sale of financial instruments on its own account. 9

10 II. Acting in the best interests of a client In providing an investment service for the purchase and sale of financial instruments, the bank applies the principles of acting in the client s best interests, which means that the bank executes a client s orders immediately, in order of acceptance. The bank assures clients that it acts: Honestly seeking to comply with all obligations to clients on terms that reflect market conditions, reflecting the valuation of the instrument according to the model used at the bank, while maintaining the bank s right to remuneration for the activity conducted and risk accepted; Fairly ensuring the immediate execution of orders in the order of their acceptance; Professionally ensuring handling by the bank s specialist staff. The bank executes client orders in the areas assigned to the individual financial instruments. The locations for the execution of orders, depending on the financial instrument, are presented in the following table: Financial instrument Debt securities: Treasury bonds, Treasury bills, commercial bonds, foreign debt instruments, deposit certificates, Debt bills, Forward transactions and derivatives, Structured instruments: dual currency deposits, investment deposits. Financial instruments admitted to trading on an organised market. Foreign debt securities, including structured bonds. Structured insurance, Life assurance with a capital insurance fund. Participating titles in investment funds. Location The bank s own account The investment company specified by the client or defined in an agreement. The entity carrying out an issue of foreign debt securities. Life assurance company. Transfer agent. 10

11 III. Managing a conflict of interest The provisions of the MiFID Directive impose on the bank an obligation to identify potential and current conflicts of interest and to implement measures to manage conflicts of interest with respect to investment services connected with the purchase and sale of financial instruments. A conflict of interest is understood in particular to be circumstances known to the bank which could lead to conflict between the interests of the bank, a person associated with the bank and the bank s obligation to act fairly, taking into account the best interests of the bank s client, as well as circumstances known to the bank that might lead to a contradiction between the interests of several clients of the bank. In accordance with the above definition of a conflict of interests, the bank has defined the circumstances which cause or may cause a conflict of interest, has described the measures to manage conflicts of interest and has developed appropriate procedures in this regard. The purpose of these procedures is to protect the interests of clients from the harmful effects of potential and current conflicts of interest that may arise in the course of providing investment services and trading in financial instruments. In particular, in its activities the bank applies the following principles and procedures: 1) the identification and registration of circumstances or events that may pose a potential or current conflict of interest, and the management of these circumstances and events in accordance with the procedures adopted by the bank; 2) restrictions and rules to monitor personal transactions by employees of the bank in accordance with the procedures established by the bank; 3) monitoring the flow and access to information through approved regulatory, organisational and technical measures, restricting and controlling access to information; 4) designing the internal organisational structure so as to minimize the possibility of concentrating the tasks or responsibilities making up control or supervision in one one position or organisational cell, which could result in actions and decisions detrimental to the interests of a client or group of clients; 5) the adoption of specific rules for the execution of orders for clients and the execution of the bank s own transactions, in accordance with the procedures adopted in the bank; 6) the implementation of an internal functional and institutional control system including the functioning of the internal audit unit at the bank, which occupy an independent position in relation to controlled entities of the bank; 7) the disclosure of existing conflicts of interest related to the provision of certain services to a client when there is no capacity to manage conflicts of interest, so as not to undermine the interests of the client; 8) non-execution of transactions where the transactions are in conflict with respect to one another and the condition of protecting the client s interests cannot be met, if from a formal perspective it is acceptable. Detailed information on the bank s procedures in connection with a conflict of interest shall be forwarded to a client on request. 11

12 IV. The principles for accepting and transferring financial and non-pecuniary benefits. The bank, its employees and related parties are obliged to act fairly and professionally in accordance with the principles of fair trading and with the best interests of clients of the bank. It is forbidden to accept or transfer the following financial and non-pecuniary benefits by the bank, its employees or related persons: 1) All benefits in the form of: a) cash, b) financial instruments, c) discounts on products or services, provided by a client or business partner, unless it results from the contract between the client or business partner and the bank, 2) Non-pecuniary benefits from clients or business partners prior to a decision in any case, in which the client or business partner is involved, in particular with respect to decisions on the conclusion of an agreement relating to the purchase/sale of financial instruments, the provision of investment services, the conclusion of an agreement for products exposed to credit risk, 2) Non-pecuniary benefits in kind from clients or business partners in return for benefits that clients would receive from the bank, 3) Non-pecuniary benefits accepted or passed by the bank in connection with the choice of business partner cooperating with the bank, 4) Non-pecuniary benefits, for which the acceptance or transfer is illegal or in breach of the standards in effect at the bank. The bank, including its employees and related parties, do not accept or transfer fees, commission, financial or in-kind benefits other than those necessary to provide the investment service to the client or in connection with the purchase/sale of financial instruments by a client. Fees, commission, financial and non-pecuniary benefits, other than those mentioned above, may be received and transferred provided that: a) information about these fees, commission, financial and non-pecuniary benefits, including the nature and amount or method of determining their amount, was transferred to the client prior to entering into a contract for the provision of an investment service or prior to the purchase / sale of a financial instrument, b) are adopted or transferred in order to improve the quality of the purchase/sale of financial instruments or other investment services provided by the bank to the client. The participation of employees and related parties in competitions organised by investment fund companies and insurance companies, where specific results from the sale of financial instruments and investment services are bonus prizes of a pecuniary or or non-pecuniary nature, is possible if all the following conditions are met: 1) Sales contests are organized by all investment fund companies and insurance companies, whose participating titles are distributed by the bank; 2) The conditions of sales competitions organised by all investment fund companies and insurance companies, including the size of prizes, are the same; 3) The client, in passing an order to the bank to purchase participating titles, is informed of the participation of persons involved in sales contests. The bank, the bank s employees and persons associated with the bank, may pass or receive the following non-pecuniary benefits, if all the following conditions are met: 1) There is no doubt that the acceptance/transfer of non-pecuniary benefits may give rise to conflicts of interest between the bank s staff and the client; 2) The purpose of accepting or transfer the non-pecuniary benefit is to maintain good business relationships with the client or business partner to the extent accepted in normal commercial practise and in compliance with applicable laws and bank policies; 3) Refusal to accept a non-monetary benefit, particularly in the form of a gift, will contribute to the infringement of a good relationship with the client or business partner and can could be perceived as a breach of good manners. 12

13 The list of permitted non-pecuniary benefits includes in particular: 1) The opportunity for a bank employee or person related to the bank to take part in travel to a training event organised by investment fund companies, investment companies, other business partners and clients. It is forbidden to travel to participate in training events, including conferences, if they are organised abroad (if, due to the nature of the training events/conferences, it is not possible to organize them in Poland). Training events/conferences should relate to financial instruments or investment services. 2) Possible participation of bank staff or related parties in educational competitions or contests on knowledge of financial instruments/investment services organized by investment fund companies, investment companies, other business partners and clients, provided that such competitions are rewarded with non-pecuniary prizes. 3) Non-pecuniary benefits in the form of gifts, if the following conditions are met: a) the value of the gift does not exceed 20 euros; b) the acceptance/transfer of gifts is in conformity with generally accepted commercial customs; c) in particular a gift may take one of the following forms: flowers, sweets, bottles of wine, company gifts (gadgets). 4) The opportunity to participate in meetings, business lunches and receptions at the invitation of a client/ business partner, in order to maintain business relationships in accordance with accepted commercial practice. 5) The possibility of organising meetings and lunches with clients/business partners in order to maintain business relationships in accordance with established commercial practice. The bank, in conjunction with the taking and forwarding of orders relating to participating units, does not charge fees or commissions from clients. Clients affect payment of fees and commissions due to the fund according to the terms and at the amounts defined in the information prospectus and fee table for the individual funds. The bank collects remuneration for handling the distribution of participating units in investment fund societies or management companies, with these being calculated on the basis of fees and commissions actually charged from participants by investment funds. The bank may also receive remuneration from investment fund societies or management companies that is linked to the volume of participating units sold by the bank in individual funds. At the request of the client, the bank shall present information on the basis, level and manner of determining the fees and commissions referred to above being charged. The bank hereby informs clients that it may in accordance with applicable, binding, legal provisions receive from third parties, including investment funds, pecuniary or non-pecuniary benefits, in particular relating to training, workshops, educational materials, contests (in particular educational and knowledge contests), software and IT systems, aimed at improving the quality of services provided, as well as to ensure a professional level of service. The bank hereby informs clients that the bank in accordance with applicable, binding, legal provisions working in cooperation with third parties, including investment funds, may forward pecuniary or nonpecuniary benefits to clients, in particular those relating to training, seminars - including instructional materials - and advertising materials in order to help increase the client s awareness relating to services and financial market instruments, in particular those relating to the construction, nature and principles of functioning of financial instruments. Detailed information concerning the basis, level and manner of determining the level of pecuniary and nonpecuniary benefits referred to above may be found at the bank s website V. handling of complaints In the event of noticing faults concerning brokerage services and financial instruments offered by the bank, the bank s clients may lodge claims in the following manner: in person at every bank branch office, however, this must be made in writing; by phone via the Call Centre: , * - for clients holding products from the former Polbank EFG S.A , * for private clients; *Calls charged at local rate 13

14 , * for Friedrich Wilhelm Raiffeisen clients; , * for SMEs; for corporate clients; * - for clients of Dom Maklerski Raiffeisen Bank Polska S.A. by mail: address for private and micro clients: Raiffeisen Bank Polska S.A, Wydział Relacji z Klientami i Reklamacji, ul. Fabryczna 5A, Warsaw address for corporate clients Raiffeisen Bank Polska S.A., Strefa Obsługi Biznesu, Al. Jerozolimskie 179, Warsaw address for Brokerage House clients: Dom Maklerski Raiffeisen Bank Polska S.A., ul. Piękna 20, Warsaw by electronic mail to the following address: strefa@raiffeisen.pl - in the case of clients of Dom Maklerski Raiffeisen Bank Polska S.A via Electronic Access Channels or other channels of remote communication if such have been made available to the client by the bank; All documents constituting grounds for examination of a claim should be attached to claim lodged or sent by fax or mail (in the case of notification by phone). The maximum period for the examination of a claim is 30 calendar days and is counted from the date the claim is received by the bank. If the claim cannot be handled within this period, the bank shall inform of the delay as well as the predicted deadline for the presentation of its response. Rules for the examination of claims by Riaffeisen Bank Polska S.A. are available at as well as bank branch offices. A private client (a natural person using the bank s services, holding an agreement concluded with the bank for the use of products offered by the bank, a person authorised to use the bank s offer directed towards such a group of clients) has the right to appeal the position presented by the bank in its response to the claim. In this event the client may: direct the appeal directly to the bank in accordance with procedures foreseen for the lodging of Claims; take advantage of the Bank Arbitrator at the Association of Polish Banks [Związek Banków Polskich] (for claims not exceeding PLN 8,000); file such with the County/Municipal Consumers Ombudsman [Powiatowy/Miejski Rzecznik Konsumentów] or Insurance Ombudsman [Rzecznik Ubezpieczonych] (for issues relating to insurance), or lodge a claim with the appropriate general court of law. A client may contact the bank in order to obtain information concerning the current status of the claim. Information may be obtained from a bank branch office or via the bank s Call Centre. Raiffeisen Bank Polska S.A. is subject to the supervision of the Polish Financial Supervision Authority (KNF) and, in respect of consumers, additionally the Competition and Consumer Protection Office (UOKiK). *Calls charged at local rate 14

15 VI. InformationS about the bank Raiffeisen Bank Poland S.A., with its registered office in Warsaw at ulica Piękna 20, is a subsidiary of Raiffeisen International Bank AG (RBI), of which the majority shares are owned by Raiffeisen Zentralbank Österreich AG (RZB), with its registered office in Vienna. RZB is the parent company of the RZB Group and the central institution of the Raiffeisen Banking Group the largest banking group in Austria in terms of total assets and local distribution network. In addition, 13% of shares in Raiffeisen Bank Polska S.A. are held by Eurobank Ergasias.** The legal merger of Raiffeisen Bank Polska S.A. and Polbank EFG S.A. was carried out in The legal successor of the two banks is Raiffeisen Bank Polska S.A., which is present on the market under the name of Raiffeisen Polbank. The bank s clients may submit orders for investments in financial instruments offered by the bank through its network of branches, a list of which is available at and by contacting the bank s call centre on the following numbers: , * for private clients; , * for customers of Friedrich Wilhelm Raiffeisen; , * for small business; for corporate clients; Clients can contact the bank in Polish. All documents signed by clients of Raiffeisen Bank Poland S.A. and any information will also be forwarded in the Polish language. The bank reserves the right to communicate with clients in languages other than Polish. Raiffeisen Bank Poland S.A. has been authorised by the Securities and Exchange Commission (PSEC now FSC) to provide custodial services since The bank s offer of custodial services covers all securities offered in domestic and foreign securities, which are the subject of domestic investment, under the relevant provisions of law. Raiffeisen Bank Poland S.A., as a custodian bank, guarantees the safety of the assets stored, full confidentiality of stored assets, and their absolute separation from the bank s own assets. Securities may be registered in accordance with the wishes of the client, in a single joint account, in which it is possible to separate any number of sub-accounts, or in many separate accounts with sub-accounts. A client can deposit his securities in one custodian account containing any number of multiple sub-accounts or custodian accounts. The opening of every custodian account requires the signature of a separate contract to provide custodial services. Reporting from these accounts may be maintained in a flexible manner in accordance with the arrangements with the client. The custodian may present a separate report for each sub-account or a summary report for the whole of the trust account. Securities admitted to public trading are recorded in a dematerialised form and stored in accounts for clients. Securities in dematerialised outside regulated trading are stored and recorded in the register of physical securities at the Custodian Services Unit. The bank ensures that the systems installed at the bank guarantee the safety of assets held at the bank. Raiffeisen Bank Polska S.A. also holds a permit from the Financial Supervision Commission for the following: accepting and passing orders for the purchase or sale of financial instruments, performing orders for the purchase of sale of financial instruments on the account of the party submitting the order, acquiring or disposing of financial instruments on its own account, investment advice, offering financial instruments, *Calls charged at local rate ** On the basis of the transaction concluded in October, 2012, Eurobank Ergasias RBI sold its shares to RBI, wherein the transfer of ownership to these shares to RBI should take place in May

16 the provision of services relating to the execution of underwriting contracts and service contracts, or concluding and executing other contracts of a similar nature, if they relate to financial instruments, storing or registering financial instruments, including managing securities accounts and managing cash accounts, advice for businesses on capital structure, corporate strategy and other issues related to such structure or strategy, advisory and other services with respect to mergers, splits and acquisitions, the preparation of investment analyses, financial analyses and other recommendations of a general nature relating to transactions involving financial instruments, This activity is carried out by the Brokerage House of Raiffeisen Bank Polska S.A. - a separate organisational unit of the bank. Customers can contact the Brokerage House on the following numbers : or *, dom.maklerski@raiffeisen.pl, internet site: or The Brokerage House of Raiffeisen Bank Polska S.A. is subject to supervision by the Financial Supervision Commission with its registered office in Warsaw at Warsaw , Plac Powstańców Warszawy 1, telephone: , fax: , knf@knf.gov.pl, The Brokerage House is a member of a compensation scheme run by the National Depository for Securities. The compensation system is intended to provide investors with cash payments up to the amount specified by the act on trading in financial instruments and to compensate for the lost value of financial instruments held by them in brokerage houses, in the event of the following: the bankruptcy of a brokerage house, or a legal binding dismissal of an application for bankruptcy on the grounds that the assets of the brokerage house are insufficient to cover the costs of the proceedings, or the assertion by the Financial Supervision Commission that the brokerage house is unable, for reasons directly related to the financial situation, to perform its obligations arising from the claims of investors and it is not possible that they will be met in the near future. The compensation system secures the payment of an investors funds less the charges due to the brokerage house from the investor in respect of services provided, in accordance with the state on the date of the occurrence of one of the above circumstances, up to the equivalent in zloty of 3,000 euro - 100% of the funds covered by the compensation scheme, and 90% of the excess over that amount, wherein the upper limit of compensation is the equivalent in zloty of 22,000 euro. The value of the euro in zloty is calculated based on the average exchange rate of the National Bank of Poland, in accordance with the published exchange rate table, from the date of the occurrence of the circumstances giving rise to the compensation. The aforementioned amounts determine the maximum amount of the claims from an investor, regardless of how much funds and in how many accounts the investor had these funds, or how many claims he has entitling him to receivables from a given brokerage house. Customers can contact the bank and the Brokerage House in Polish. All documents signed with customers of Raiffeisen Bank Polska S.A. and all other information, shall also be presented in Polish. The bank reserves the right to communicate with customers in languages other than Polish. Up to date information on the MiFID is available at 16

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