MiFID II – Law 7/2024, of 27 May, on the organisation and functioning of the operating institutions of the financial system and market abuse.

• To increase investor protection
• To guarantee the transparency and proper functioning of the markets

All the financial products are classified in accordance with the degree of difficulty in understanding their characteristics and the risk associated with them, with the aim of adapting the applicable investor protection standards.

• Non-complex products: These are products which, due to their characteristics and risks, the available information, the market price, etc., are easier for a client to understand. For example, listed shares, state subscriptions, UCITS funds, etc.
• Complex products: These are products which, due to their characteristics and risks, may be more difficult for the client to understand. For example, derivatives, structured products, private equity, etc.

Clients are classified in accordance with their level of knClients are classified in accordance with their level of knowledge and experience of the financial markets, as well as their ability to assume the risks arising from their investments.

• Retail clients: These are essentially all individuals (natural and legal persons) who don’t invest professionally. Retail clients have the least knowledge and experience of the financial markets and, therefore, they enjoy the highest level of protection.
• Professional clients: These are clients who have the experience, knowledge and qualifications necessary to make their own investment decisions and the ability to assess the risks inherent in these decisions. The level of protection they are granted will therefore be lower than that of retail clients.
• Eligible counterparties: These are banking institutions, financial (non-banking) entities specialising in credit, financial investment institutions, collective investment bodies, including those related to securitisation and venture capital, and their management companies, insurance companies, pension funds and their management companies, operators in raw materials and derivatives of raw materials, operators who contract on their own account and other institutional investors. The Law establishes a basic level of information and protection for these clients, given that, by their very nature, they are deemed to be acting directly and frequently in financial markets.

The current regulation establishes, in certain cases, the need to obtain information on the clients’ knowledge and experience, their investment goals and their financial situation, depending on the type of service to be provided to them and their classification. This information will be obtained in the adequacy and suitability tests, which will be carried out prior to the provision of the investment service. The aim is to offer the clients products and services suited to their needs.

• The adequacy test is carried out by the order transmission and reception service to determine whether the client has the knowledge and experience required to trade in complex assets.
• The suitability test is carried out by the portfolio management and investment advisory services to determine both the knowledge and experience required to trade with the asset and to check that the asset is suited to the client’s goals, risk profile and financial situation.

• Order execution policy:

The order execution policy focuses on taking reasonable steps to obtain the best possible results for the clients’ transactions, taking into account the price and costs, the speed and likelihood of the execution and settlement, the volume, the nature of the transaction and any other relevant component of the execution of the order. This document also regulates the order management circuits and systems that allow their rapid and proper execution and allocation, in such a way that no client is harmed when transactions are carried out for several ones and no trading with clients is entered into on their own account.

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• Asset protection policy

The asset protection policy lists the measures adopted by Crèdit Andorrà, S.A. to protect the rights of clients over the financial instruments and funds they entrust to us, to prevent the improper use of these financial assets on their own account and to establish records that distinguish the assets owned by each of the clients from those owned by the institution.

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• Conflict of interest management policy

The aim of this conflict of interest management policy is to establish the general principles and action procedures to address potential or real conflicts of interest that arise in the provision of the investment and auxiliary activities and services.

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• Incentive policy

The incentive policy seeks to establish a procedure for identifying and analysing the incentives given or received in relation to the provision of the investment and auxiliary services and announcing them to the clients.

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• Pre-contractual information for retail customers

Download MiFID leaflet

Download pre-contract information discretionary portfolio management

Download pre-contract information investment advice