MiFID_II_EN

17 Financial institutions that offer investment services must always com- mit to their customers in a loyal, honest and professional manner . That standard is also called duty of care. The same duty was already in place under MiFID I. MiFID II will ex- tend its scope from 2018 onwards. The general principle remains unchanged, but financial institutions will have to act in the interest of the customer even more than before. Concretely, that means the following: | | They must provide their customers with more detailed informa- tion about the costs of the services and products they offer. | | They must deliver a written report their customers about the investment advice they have provided. | | The target market must be determined when developing new products. Furthermore, they are required to demonstrate sufficient caution . They must take stock of the financial situation and wishes of their customers and then adequately inform them. They must verify the in- formation offered by the customer as well so they can decide, where necessary, not to provide the requested services. What is duty of care and how does MiFID II impact this?