Differentiation of investors' protection


On November 1st 2007, the European Union’s Markets in Financial Instruments Directive came into effect. The goal of this Directive is to ensure a single regulatory regime for financial instrument markets across the member states of the European Union due to its provisions defining increasing levels of investors’ protection as well as a transparent provisioning of high-quality financial services.

Since now the clients that are to receive investment services shall be classified into the following categories in compliance with their investment experience, financial situation, knowledge and investments goals:

  • Retail clients. This category includes the major portion of private customers and small companies.
  • Professional clients, which includes credit institutions, insurance agencies, brokerage companies, corporate investment entities and their management companies, governments of the states, big companies, etc.
  • Eligible counterparties include the clients with the high knowledge and experience in financial markets.

A level of the investors’ protection is specified in accordance with their categories - the highest level is applied to the retail clients, lower one - to the professionals and the least - to the eligible counterparties.

In order to implement the provisions under the present Directive, Šiaulių bankas shall collect more information regarding its clients’ knowledge, experience and financial status. The collected information shall be applied assessing clients’ needs, experience and risk exposure.
Instead of previously used agreements regarding Securities accounting (keeping) as well as acceptance and execution of orders, Šiaulių bankas, starting from 05/11/2007, shall enter into Securities account management and intermediation agreements with the clients. The mentioned agreement shall include other documents in the form of annexes, which will be related to the rendering of investment services. These documents shall define the category allocated to the client by the bank as well as procedures in accordance with which the client will be able to apply for another category with different level of protection measures applied.

Starting from 05/11/2007 the clients shall able to submit new orders for securities operations only after signing a Securities account management and intermediation agreement. Therefore, the clients who are already being provided with the investment services are welcome to visit the bank to sign the agreements as well as other relevant documents. While new clients shall sign documents prior to starting using the investment and additional services defined in the Law on Financial Instruments Markets of the Republic of Lithuania provided by the bank.  Starting from 01/01/2008 the (old) agreements regarding Securities accounting (keeping) as well as acceptance and execution of orders will become invalid, therefore, all the clients, who had entered into the agreement previously, are welcome to visit the bank in order to sign new agreements.

 More information shall be provided by the following sub-departments of Šiaulių bankas’ Treasury Department that render investment and additional services:
Securities Trading Sub-department, tel. +370 41 595 654, 595 608, e-mail: vp.prekyba@sb.lt
Securities Accounting Sub-department, tel. +370 41 595 669, 595 652, e-mail: vp.apskaita@sb.lt