MIFID PROJECT

FEDERACIÓN DE SERVICIOS DE UGT

Bruselas, 6 de Julio de 2011

Presentation Scheme• 3 Banks Mifid Survey Results.

• Actual Mifid Situation in Spain.

• Good and Bad Practices.

• Suggestions.

3 Banks Mifid Survey Results

• The first common answer related to Mifid clasification of clients is this: more task, more work.

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3 Banks Mifid Survey Results

• The second common answer related to Mifid directive is this: No more employees hired, more worries for the manager, the sales clerk, the client´s specialist, and finally the whole branch.

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3 Banks Mifid Survey Results

• FORMATION- TRAINING• Most of our colleagues, complaint about

lack of training, or only-online formation.(70%)

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3 Banks Mifid Survey Results

• FORMATION- TRAINING• 60% Of our colleagues, have not a clear

idea about the meaning of signing a conduct code or good practices code, and its implication.

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• INCENTIVES: As we don´t work with intermediaries, 92% of bank employees don’t appreciate, or see what incentives to work for.

• There is a disparity between the different types of remunerations, and punctuation scale.

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3 Banks Mifid Survey Results

3 Banks Mifid Survey Results

• INCENTIVES: The customers are not informed about the repercussion of bank´s interest in selling the different products, the same in many cases as the employee, because the software is not prepare for that purpose.

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3 Banks Mifid Survey Results

• INCENTIVES: The most contradictory situation is that, even thought our fellow colleagues know, that the products offered to clients, do not fit into their classification, due to the high pressure and commercial goals, they can possible fool the software system, with the correspondent fear about sanctions. (Inside, or outside the bank)…….

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Actual Mifid Situation in Spain.

Court Sentences in favour of clients.• 262 Sentences in favour of clients.• Central bank investigating about toxic

products in relation to mortgages endorsing to third parts.

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Actual Mifid Situation in Spain

• SWAPS, and IRS Options denounced. • Various clients and professional lawyers

bureaus have sued in Brussels against the spanish central bank, which does not consider this products as Mifid.

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Actual Mifid Situation in Spain

• MONOPOLY Situation.• Internalization and transparency

problems: the spanish players, (Banks) don´t see clear the aims of the competence.

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Actual Mifid Situation in Spain

• Market concentration process is going slow due to crisis and distrust of national players.

• Only 2 great spanish banks met the Tier 1 internalization standards to operate as a major player and MTF. Costs are a relevant question that could affect the Staff (Redundancies)

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Good and Bad Practices

• Good Practices:• Conduct codes and guides signed by

banks.• More quality& quantity in specific training

to employees and stakeholders.

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Good and Bad Practices

• Bad Practices:• Bad classification of clients.• Inadequate software tools can spoil trust

and specialized services. No arbitration system to solve problems involving employees and clients.

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SUGGESTIONS & CONCLUSIONS

UGT Proposals: To enter Mifid directive operations arbitration into the collective bargaining agreement for banking sector in Spain.

• To revise the bank employees responsibility due to companies goals &market pressure. (No dismissals)

• To agree to avoid sanctions due to inadequate software applications.

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SUGGESTIONS & CONCLUSIONS

UGT Proposals: To suggest the EU Commission to fulfill the differences in the Mifid directive application transposition to the national laws.

To establish better practices between all the stakeholders and to recognize the union’s role.

• To agree to create and Good & Bad practices Observatory in the follow-up of the application of the Mifid directive.

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