What is MIFID II?

New industry-wide legislation was introduced on 3 January 2018 that may affect your ability to trade on Smart Investor. If you’re confused by the changes, we explain everything you need to know below.

  • What happens if I don’t provide the details of my nationality?

    You’ll still be able to use your account but you won’t be able to buy and sell shares, Exchange Traded Funds (ETFs), investment trusts or bonds, or a number of other stock market-listed investments. To set up any orders, regular investments or automatic dividend reinvestments, you’ll need to confirm your nationality.

    You also might not be able to take part in some corporate actions for investments that you already hold. As soon as you provide us with the information requested, you’ll be able to trade as normal.

  • We have a joint account, do we both have to provide nationality?

    Yes. If you have a joint account with us, as joint owners, you’ll both need to provide these details before either of you can trade – even if only one person actively manages the account.

  • Why can’t I purchase certain stocks?

    New industry-wide regulations introduced on 3 January 2018 mean that some stocks are currently not available to purchase. That’s because we haven’t been provided with all the key information you’d need to be sure the investment is appropriate for you. Some assets must have a Key Information Document (KID) and/or details on costs and charges available before investors can purchase them. Please check any managed orders or regular investments you have, as you may find these haven’t been processed. We’re working closely with the relevant parties to resolve this as quickly as possible.

  • I only hold funds – do I need to provide details?

    If you currently only hold funds you won’t need to provide us with this information right away. We’ll ask you for it the next time you log in or call us.

  • What form of identification can you accept?

    If you’re a UK national only, we’ll ask you to confirm this and provide your National Insurance number. If you have multiple nationalities or are a non-UK national, once you’ve confirmed your nationality, we’ll ask you for your passport number or national/personal identity number.

  • How do I find my NI number?

    You should be able to find your National Insurance (NI) number on a work payslip. If you’ve lost your NI number, you can find more information on what to do on the Government’s official website.

  • What if another area of Barclays has already asked me for this information?

    If you have other accounts or services with Barclays, you may receive similar requests for this information. Please respond to each request independently to make sure that the correct details are held for you across all your accounts and services.

  • How does MIFID II affect me if there’s a Power of Attorney on my account?

    In most cases both the Attorney and the account holder will need to provide the required information before the Attorney can trade.

  • I am the legal guardian of a Child SIPP – whose details do I provide?

    We’re required to confirm the nationality of both the legal guardian and the child.

  • Do I need to complete another knowledge check if I’ve already done one?

    As part of MiFID II, an appropriateness assessment is required when purchasing a complex investment product through a non-advised service, such as Barclays Smart Investor. We’ll ask a number of questions relating to your knowledge, experience and understanding to determine if the investment is appropriate for you.

    Separately, knowledge checks are required upon your first purchase of a non-complex product.

    Please note that if there is a period of 12 months where you’ve not placed a trade in one of those asset types, you’ll be asked to take the appropriateness assessment or knowledge check again.

  • What happens when I open a new Smart Investor account?

    If you’re an existing Smart Investor customer and you haven’t already provided your nationality details, you’ll be asked to do this before your new account is opened. You’ll also be presented with a full overview of costs and charges associated with the account, which you’ll be asked to read and accept.

    If you’re a new Smart Investor customer, you’ll be asked to provide your nationality details whilst completing your application. You’ll also be presented with a full overview of costs and charges associated with the account, which you’ll be asked to read and accept.

  • Why am I now seeing more information about costs and charges?

    You’ll now see more detail around the costs and charges associated with investing with Smart Investor.

    That’s because new MiFID II legislation, introduced in January 2018, requires us to provide you with information about all costs and charges, presented in a standard format. You’ll generally see:

    • A breakdown of your costs and charges
    • Worked examples of how much you might pay, using some typical portfolios
    • A clear picture of the total cost – taking everything into account such as taxes and third party costs and charges.

    More specific detail will be given each time you place a trade.

  • Why do I need this information and what are you going to do with it?

    The rules of MiFID II require financial services companies, like Barclays, to collect additional information about our customers. Specifically, we require customers who want to buy or sell shares, ETFs/ETC, investment trusts, bonds and a number of stock-market listed investments to confirm their nationality and provide us with what is known as a ‘national client identifier’ such as a National Insurance number. For every share, or other listed investment, trade you place, we will now share your nationality and National Client Identifier along with your first name, surname and date of birth with the Financial Conduct Authority (FCA).