MiFID II IB Inducements regulation into force on 1 July 2017

As previously communicated in our June newsletter, Denmark has decided to implement new rules on inducement effective 1 July 2017.

Saxo has looked at all IB relationships to ensure these will be compliant after the introduction of the new rules. You might have been in contact with your Account Manager to discuss the following topics:

  • Services delivered by you to the end-clients.
  • Whether you can continue on a traditional commission paying model, which is considered inducement.
  • Whether adjustments are needed to the price at which the end-clients are serviced.

In the cases where we have had to present you to a reduced end-client pricing, we have notified you that such corrected prices will be enforced as of 1 July 2017.

In addition, we would like to emphasize that the inducement rules are tied with the requirements for increased client transparency. While all end-clients already are able to see any payment they have made to their IB, we will also introduce a new IB commission report that shows any payment Saxo has made to their IB, based on their trading activities from 1 July 2017 and onwards. The IB commission report will be made available to your end-clients in “My Account” by end of August 2017, after we have presented you to a sample of it.

Saxo continues to value all of our IBs as business partners and we are always open to discussing and developing our joint business, as well as end-client pricing.