MiFID II

On the 3rd of January 2018 MiFID 2 will be implemented in the EU/EEA. The purpose of this section of our site is to provide guidance on how Pareto Securities will implement key parts of the new regulation.

Here you may find information regarding SI (systematic internaliser), a Q & A regarding LEI, our updated terms and conditions (currently only Swedish) and a letter for our clients informing them about relevant updates due to MiFID 2 in English and Swedish.

This site will be regularly updated with news and updates regarding MiFID 2.

About us and our capacity

Pareto Securities (Pareto) is an agency broker. We do not execute client orders against own book in any systematic way or to any substantial degree. Consequently we are not to be considered an execution venue according to the systematic internaliser (SI) definition (Article 4(1)(20) of MIFID II). Our trading activity is periodically gauged with regard to internalisation to ensure that our status is in accordance with the regulatory regime.

Pareto will, when applicable and possible, execute client orders on or according to the rules of a trading venue. Some trades may for a number of possible reasons nevertheless be required to be reported by us post-trade to an approved publication arrangement (APA). TradeEcho (LSE) has been chosen by us for this purpose.

Those of our clients who are in scope for the post-trade requirements because they are MiFID investment firms may request us to perform such post-trade reporting on their behalf. If you represent such a firm, we encourage you to contact us by sending an email to PSATR@paretosec.com in order to coordinate assisted trade reporting.

Unbundling of research

Pareto Securities can assist independent advisors and discretionary portfolio managers covered by the new rules regarding unbundling of research in various ways. For more specified information, please contact your main broker at Pareto Securities.

Research Subscription – Terms and conditions Pareto Securities AS (Norway) (pdf)
Research Subscription – Terms and conditions Pareto Securities AB (Sweden) (pdf)

Updated Terms and Conditions

Letter: Changes in Pareto Securities’ general terms and conditions in light of MIFID II (pdf)
Informationsbrev: Ändring av Pareto Securities allmänna villkor med anledning av MiFID II (pdf, Swedish)
Information och villkor Pareto Securities 2018 SV MIFID II (pdf, Swedish)

LEI Q&A

What is an LEI?
LEI stands for Legal Entity Identifier and provides an identification number for a legal entity in a securities transaction. The LEI demand is a result of the new MiFID II regulation that comes into force the 3rd January 2018. In order for a legal entity to engage in any securities transaction with Pareto Securities the LEI has to be provided for reporting purposes.

Who needs an LEI?
LEI has earlier been requested for legal entities engaging in derivative transactions. In connection with the implementation of MiFID II the demand for LEI had been broadened and now includes all securities transactions investment firms within EU/EES.

The LEI requirement includes entities such as;

  • Associations
  • Foundations
  • Companies
  • Credit institutions, investment firms, insurance and reinsurance groups and other intuitions under the supervision of the responsible Financial Supervisory Authority

An individual with a Pareto Securities account is not affected by the LEI demand; it only applies to legal entities.

How do I apply for an LEI?
An LEI can be requested from an authorized LEI provider also known as a LOU (Local Operating Unit).

Please see a selection of different providers below:

A more extensive list of LEI issuing organisations can be found here.

What happens if I don’t have an LEI registered the 3rd of January 2018 and reported it to Pareto Securities?
Current clients registered as entities will not be able to carry through any securities transactions if no LEI is registered on the entity when MiFID II comes into force. If you have no intention to transact after the 3rd January there is no need for an LEI.

This does however not mean that your Pareto Securities account will be shut down, only that certain functions won’t be available until an LEI is registered.

I have no intention to transact, only keep my current assets in my Pareto Securities account. Do I still need LEI?

As long as Pareto Securities do not have to transactions report anything on your behalf, there is no need for an LEI. Do however keep in mind that if you later on choose to transact in securities we will need a registered LEI to be able to assist you.

I have LEI, how do I inform Pareto Securities?
In order for us to register your LEI you need to send us an e-mail to PSlei@paretosec.com were you state the entity name, registration number and LEI.

My company has several accounts with Pareto Securities. Do I need an LEI for every account?
No, you only need an LEI for the registered legal entity regardless of how many accounts you have with Pareto Securities. If you have two different legal entities we need an LEI for each entity.

My legal entity is based outside of the EU/EEA but deals with institutions in the EU/EEA. Do we still need to report LEI to Pareto Securities?
If your entity conducts securities transactions with institutions within the EU/EEA an LEI has to be registered regardless of where the entity is based. The LEI is a tool for the institutions transactions reporting.

Pareto Securities LEI

Country Legal Name LEI
Finland Pareto Securities Oy 743700NDOKFSKZEMDX22
Norway Pareto Securities AS 549300H0QDQHRJXRM779
Singapore Pareto Securities Pte. Ltd. 5493007DDHK5IWY6PL83
Sweden Pareto Securities AB 549300446KJF7NHIXJ61
USA Pareto Securities Inc 549300XXWEPZGXETT322