Information about us and our
securities services
Information about us and our
securities services
Information for clients (version: 15. June 2015)
Pursuant to the Austrian Securities Supervision Act (WAG
2007), we are required to provide you with the following
information about us and our securities services.
A. Information about us
Erste Group Bank AG
(Erste Group), Graben 21, A-1010 Vienna, Austria
24h service
tel.: +43 (0)5 0100 - 20111
E-Mail: [email protected]
Central switchboard
tel.: +43(0)5 0100 - 10100
fax: +43(0)5 0100 9 – 10100
License
Registered Seat Vienna
Registration No. 33209m, Commercial Court Vienna
UID No.: ATU15361506
DVR 0031313
Swift code/BIC: GIBAATWGXXX
Bank code: 20100
License: licensed credit institution acc. to section 1 (1)
Austrian Banking Act
Responsible supervisory authority
Financial Market Authority
A-1090 Vienna, Otto-Wagner-Platz 5
www.fma.gv.at
Chamber/Trade Association
Austrian Federal Economic Chamber
Sector Banking and Insurance
A-1040 Vienna, Wiedner Hauptstrasse 63
www.wko.at
Legal regulations
The principal legal provisions are the Austrian Banking
Act (Bankwesengesetz, BWG), the Austrian Securities
Supervision Act (Wertpapieraufsichtsgesetz, WAG), and
the Austrian Savings Bank Act (Sparkassengesetz, SpG), in
each case as amended (www.ris.bka.gv.at)
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B. Additional information in
accordance with the Austrian
Media Act
Imprint
www.erstegroup.com>Imprint
Links
On its website, Erste Group hosts links to other websites.
Erste Group does not review such websites with respect to
their content or lawfulness. Erste Group has no influence
over the design of such websites and expressly disavows
any unlawful content that may be depicted there.
Moreover, Erste Group assumes no responsibility or liability
for such content.
E-Mail
Please be advised that, in conformity with the Austrian
E-Commerce Act, email sent to us is downloaded only
during normal banking hours.
Languages
You can communicate with us in one of the following
languages: German or English.
Data protection
All personal data is handled by us in accordance with the
Austrian Data Protection Act (DSG 2000).
Annual report
The consolidated annual report of Erste Group Bank AG
can be downloaded from our website as a PDF document
beginning in the 2nd quarter of the subsequent financial
year: www.erstegroup.com
C. Deposit Insurance and
investor indemnification
Every Austrian credit institution that accepts deposits
(either to current accounts or to home-loan savings
accounts) that are required to be insured and/or provides
investment services that are required to be insured is
obligated by statute to belong to an insurance scheme.
The company providing insurance coverage to Erste Group
and the Austrian savings banks is Sparkassen-Haftungs
Aktiengesellschaft.
C.1. Statutory deposit guarantee scheme
The statutory deposit insurance scheme ensures that
deposits of customers (both natural and legal persons
alike) that are held by an Austrian bank will be paid out, up
to a total amount of EUR 100,000. This means that capital
and interest in current accounts, passbooks and savings
accounts with ProfitCard, and home-loan savings accounts
are protected up to a total amount of EUR 100,000 per
natural or legal person and per bank.
Only deposits in accounts or passbooks that are
denominated in euros or other EEA member state currency
are covered by the deposit guarantee scheme.
C.2.Statutory investor indemnification
The statutory investor indemnification scheme insures
claims by customers against a bank resulting from services
relating to securities. This includes all cases in which the
bank is no longer able to pay out monies credited to noninterest-bearing accounts from securities transactions (e.g.
monies from dividend payouts) or if it is no longer able to
return securities. Customers who are natural persons are
insured up to EUR 20,000. Customers that are legal entities
or partnerships are insured up to 90% of their claim, but
not more than EUR 20,000. Customers are entitled to the
protection afforded by investor indemnification in addition
to deposit insurance.
Deposit insurance and investor indemnification protect
customers in those cases in which the bank is no longer
able to pay out their assets to them because the credit
institution is in bankruptcy, is under court supervised
management, or has been ordered to suspend payments.
C.3. Exceptions to deposit insurance and investor
indemnification
The following are not covered by deposit insurance or
investor indemnification:
–Deposits and claims not denominated in euros, Swiss
francs, or an EEA member state currency (all EU member
states, Iceland, Liechtenstein, and Norway)
–The credit institution’s debt instruments (e.g. bonds
issued by a residential construction bank (Wohnbank),
medium-term notes (Kassenobligationen), covered
mortgage bonds (Pfandbriefe) etc.). In the event of
bankruptcy by the issuing bank, these are satisfied in
accordance with the terms and conditions of issue
(e.g. preferentially from a separate asset pool, as is the
case with Pfandbriefe, or at the recovery percentage or
subordinated after satisfaction of other creditors)
–The bank’s equity components (e.g. participatory or
supplemental capital)
–Deposits and claims by large corporations within the
meaning of Section 221, para. 3, of the Austrian Business
Enterprise Code (Unternehmensgesetzbuch, UGB)
–Deposits and claims by individuals affiliated with the
credit institution, such as members of the management
board or supervisory board, personally liable company
members, auditors of the bank, and individuals holding
more than 5% of the bank’s capital, including where such
individuals are working for companies affiliated with the
bank (other than insignificant holdings). Also excluded
from insurance are close relatives of individuals affiliated
with the credit institution, as well as third parties, where
such close relatives or third parties are acting for the
account of the individuals affiliated with the credit
institution.
–Deposits and claims by other companies considered
companies affiliated with the credit institution
(Section 244 UGB)
–Deposits and claims for which the depositor or claim
holder received interest payments or other financial
benefits from the credit institution on an individual
basis that contributed to a deterioration of the credit
institution‘s financial condition
–Deposits and claims related to money laundering
–Deposits and claims by credit institutions, financial
institutions, or securities companies, or by institutional
investors, such as insurance companies, investment
companies (funds), pension insurance funds, and the
like
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–Deposits and claims by the Federal government,
states, or municipalities, or by comparable foreign
public authorities
In addition, please see the statutory provisions in
Sections 93 et seq., 103h, and 103k BWG regarding
deposit insurance and investor indemnification, which
we will be glad to provide you upon request.
C.4. Savings banks joint liability scheme
In connection with mutual liability agreements, Erste Group
und Sparkassen is liable for the disbursement of customer
deposits well beyond the amounts insured by statute. This
liability thus acts as a supplement to the statutory deposit
insurance and investor indemnification schemes.
Moreover, the basic agreement on the joint liability scheme
to which all Austrian savings banks are party (other than
Allgemeine Sparkasse Oberösterreich Bankaktiengesell­
schaft, which concluded a trilateral liability agreement with
Erste Bank and Erste Group Bank AG) contains an earlywarning system, in order be able to react in timely
fashion in the event a savings bank experiences economic
difficulties.
The paramount task of this early-warning system is to
increase the economic viability of the savings bank group
for the benefit of customers and thus to safeguard the
deposits of our customers. No Austrian savings bank has
ever gone bankrupt, and no customer of a savings bank
has ever lost a single euro.
By way of this joint liability scheme, Erste Group and the
Sparkassen seek to document and reinforce this aim.
D. Safekeeping of client assets
D.1. Securities purchased in Austria
Securities purchased in Austria are held in custody in Austria, usually with a third-party custodian commissioned by
Erste Group. Normally, they are held in a custody account
at the central securities depository of Oesterreichische
Kontrollbank AG (OeKB) or at another credit institution authorised to act as a custodian. When securities are held In
Austria, this generally takes the form of collective custody.
This does not interfere with the customer’s rights, since in
particular the scope of the customer’s securities holdings
can be determined at any time. Austrian law is applicable
to custody in Austria.
D.2. Securities purchased abroad
Securities purchased abroad are held in custody abroad,
usually with a third-party custodian commissioned by Erste Group. When securities are held abroad, this generally
takes the form of depository custody in which the depositor has no claim to ownership but instead only to surrender
of equivalent securities (Wertpapierrechnung). In this case,
the customer is credited with a claim to delivery of that
share of securities held by Erste Group for the customer’s
account out of the total portfolio held abroad. When securities are held in custody abroad, foreign laws and practices
apply.
D.3. Liability of Erste Group
In connection with securities custody, Erste Group is liable
to customers for fault by a third-party custodian in accordance with the principles of vicarious liability under Section
1313a of the Austrian Civil Code (Allgemeines
Bürgerliches Gesetzbuch, ABGB) to the same extent as
for its own negligence.
D.4. Banking secrecy
We are obligated by law to comply with banking secrecy.
This means that we are not allowed to provide information
to foreign issuers that request disclosure of shareholders
and holders of debt securities, since, depending on national
laws, this could cause them to incur detriments, such as
loss of dividends, withdrawal of voting rights, and restrictions on negotiability.
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E. Customer profile and
customer categories
Our customers are always the focus of our efforts. In order
to ensure that we can give you advice that is tailored to
your personal needs, comprehensive information needs to
be provided to your customer advisor.
E.1. Customer profile
As our customer, you can be assured of receiving the
best possible advice from us. Before making you an offer,
your customer advisor has to obtain extensive information
from you. We need this data in order to be able to tailor
our recommendations to your needs. This is moreover
intended to help you assess the consequences and
ramifications of the recommended financial instruments.
The scope of the data to be collected is defined in
detail in the WAG 2007. This includes identifying the
customer’s assets, the customer’s income, the purpose
of the investment, the duration of the investment, risk
tolerance, and knowledge about and experience with
financial instruments. The scope of advisory services
depends to a great extent on the amount of information
that you provide about your personal situation. The
more detailed the information that you provide, the more
focused the work by your advisor can be in developing
recommendations tailored to your needs. If you are not
prepared to give us the minimum information required by
law, we are not allowed to make any recommendations.
E.2. Customer categories
The WAG 2007 sets forth three categories of investors:
the customer, the professional customer, and the eligible
counterparty. The differentiation is based on well-defined
criteria. Customer advisors assign customers to one of the
three categories. If you wish to be reassigned to a different
category, you must make an application, after which we
will review the criteria mandated by statute. The WAG 2007
provides for a specific level of protection for you depending
on the category to which you have been assigned. This
means that reassignment to a different category also
results in a change in the level of protection.
E.2.1. Customer category
Customers in the customer category enjoy the
highest level of investor protection. This protection includes
comprehensive duties to provide information. Also, a
suitability and appropriateness review must be undertaken
when providing investment advice.
This category also includes self-employed individuals,
entrepreneurs, and other legal persons. It makes no
difference whether the assets are personal or part of a
business. The size of the investment is irrelevant as well.
E.2.2. Professional customer category
Customers in the professional customer category are those
who have extensive experience with and knowledge of
the investment business and can evaluate and control
the relevant risks correctly and comprehensively. Only
the suitability review is undertaken when providing
investment advice. The customer is expected to have
adequate financial means.
This category may include:
–Financial institutions, insurance companies,
investment companies, pension funds
–Countries, states, regional governments
–Central banks, supranational entities (World Bank,
International Monetary Fund, European Investment Bank)
– Large companies that meet at least two of the following
requirements:
–
total assets: EUR 20 million
–
net turnover: EUR 40 million
–
own funds: EUR 2 million
E.2.3. Eligible counterparty category
Being classified and treated as an eligible counterparty
requires meeting the prerequisites for a professional
customer. Eligible counterparties receive the lowest level of
protection under the WAG 2007. Customers in this category
receive no investment advice within the meaning of
Section F.2.1. However, if they are given investment advice,
they are treated as professional customers.
F. Advisory process
F.1. Suitability and appropriateness review
When providing investment advice, your customer advisor
will review whether your customer profile is up to
date and, if necessary, modify it to reflect changed
circumstances.
On the basis of your customer profile, your advisor will
determine whether the recommended financial instrument
is right for you. In other words, he or she will review
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Information about us and our
securities services
whether you have adequate financial resources, what
level of risk you are prepared to assume, and whether the
financial instrument corresponds to your investment goal
(investment purpose and investment term) (suitability
review).
The customer advisor will also review whether you are
familiar with the risks and opportunities of the relevant
financial instrument and whether you have the appropriate
knowledge (appropriateness review). If the review shows
that the financial instrument is not suitable or appropriate,
your customer advisor will point this out to you, issue a
warning, and refrain from making a recommendation. If
you nevertheless insist on concluding the transaction, you
would have to do so without advice.
F.2. Advice-based transactions and independent
transactions
What is the difference between advice-based transactions
and independent transactions?
–In the former case, your investment decision is based
on a recommendation by your customer advisor.
–In the latter case, it is based on your own decision to
acquire the financial instrument absent advice.
F.2.1. Advice-based transactions
Advice-based transactions cover investment advice
and asset management. They are characterised by the
recommendation of a financial instrument or an investment
that is geared to your needs. The recommendation is
made on the basis of the customer profile on file and your
familiarity with the product. In this regard, you will be
given comprehensive information about the recommended
financial instrument.
Our obligation to provide investment advice ends once
your order is executed. If you desire on-going support, we
can offer you special services, such as under an asset
management agreement.
F.2.1.1. Investment advice
It is considered to be a recommendation when we propose
an investment product that is suitable and appropriate for
you (e.g. buy, sell, hold, exercise rights, etc.).
However, it is not considered to be a recommendation
when we provide you with general information through
public media about a type of security or about investment
products, when we speak with you about market
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developments, or when we make informational material
available to you.
F.2.1.2. Asset management
Asset management means the management of a portfolio
for an individual customer with discretionary latitude in
connection with the customer mandate, provided such
portfolio contains one or more investment products. In
addition to general information, you will be specifically
informed about the chosen investment strategy before the
agreement is signed.
F.2.2. Independent transactions
With independent transactions, we will review whether
your investment decision is appropriate. The review of
whether your investment decision is suitable can be
omitted. If the appropriateness review is negative, you will
be warned by us in a standardised manner.
It is considered to be an independent transaction when
–You have made it explicitly clear that you wish to make
the investment
–We have made no personal recommendation
–You insist on execution of the order despite a negative
suitability and/or appropriateness review
–A suitability or appropriateness review cannot be
performed (e.g. when you fail to provide the necessary
information for generating the customer profile)
–You execute your transactions on your own via
netbanking
F.2.2.1. Orders by means of phone, fax or email
A suitability review can be performed only by a qualified
Erste Group employee. Orders that you give to us by
phone or fax will therefore generally be executed only as
independent transactions. However, we do perform an
appropriateness review in these cases as well.
Information, market prices, and assessments do not
constitute recommendations to enter into or refrain from
certain transactions.
You have to expressly assure us that
–You have the necessary knowledge and experience with
regard to money and capital markets and the chosen
investment products, and that
–You are familiar with the associated risk and
opportunities, as well as any (exchange) practices.
Investment advisory services can be provided only in
person by your advisor or other qualified Erste Group
employee – either as part of an agreed investment
discussion at or away from the premises of Erste Group
or in connection with a contact by our customer service
centre.
F.2.2.2. Orders by means of netbanking
We also accept orders given by means of netbanking and
execute them as independent transactions. The criteria set
forth in Section F.2.2.1. apply mutatis mutandis.
G. Inducements for the bank in
investment services
When rendering investment services, we accept benefits
(„sales incentives“) from third parties, e.g. funds, under
agreements that we have in place with them.
These third-party benefits are designed to help us improve
the quality of our services and to ensure the quality of our
customer advisory services in the long term.
Annual fees are paid by third parties for brokering the
following securities. This corresponds to customary
international practice.
Real estate shares
Certificates
0–0.50 %
0–1.00 %
Bonds
Residential housing bonds
Structured bonds
Other bonds
0–1.00 %
0–1.00 %
0–1.00 %
ERSTE-SPARINVEST funds
Equity funds
Bond funds
Other funds
0–1.44 %
0–0.80 %
0–1.00 %
Third-party funds
0–1.45 %
Percentages refer to the mathematical value in the case of funds and to the market
price for all other categories.
We expressly declare that acceptance of such benefits does
not interfere with our acting in the best interests of our
customers.
We do not receive any annual fees (as described above)
for
–Investments in closed-end funds taking the form of
limited partnerships or similar legal forms (although
these do not issue any securities, they nevertheless
represent forms of investment), or
–Shares issued in connection with capital measures.
It is however conceivable that third parties may pay
one-time fees here at the time of contract conclusion.
Commissions can range from 0% to 10% for investments
and from 0% to 3% for shares.
In addition, provided that there is no interference with
customer interests, Erste Group can accept invitations
and gifts to the limited extent customary and permissible
between business partners, for instance, in the form of
invitations to cultural events and to business meals in
restaurants.
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Information about us and our
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H. Information about
execution principles
designed to ensure that it will make no difference to the
customer whether the order is executed by the Erste Group
itself or instead by a third party.
H.1. Introduction
In conformity with the provisions of the WAG 2007, the
Erste Group has established guidelines as to how it will
execute the orders of its customers in order to constantly
achieve the best possible result for them. These guidelines
are called the Execution Principles. These Execution
Principles are applicable for retail clients pursuent to WAG
2007, for professional clients pursuent to WAG 2007 other
principles are applied which reflect the special needs of
this cilent category. The main aspects of the Execution
Principles will be described in the following:
Under certain circumstances, it may be in the customer’s
interest for the Erste Group to consolidate several
orders (see H.5.).
H.2. Scope of application
The Execution Principles apply to purchase and sale orders
for financial instruments within the meaning of the WAG
2007 that are executed by Erste Group for its customers.
Under the WAG 2007, issuance and redemption of units in
domestic investment funds and real estate funds as well
as shares in foreign investment undertakings that may
be marketed in Austria or through a depot bank shall not
constitute execution of customer orders in the above sense
and accordingly is not subject to the criteria set forth under
H. Execution Principles. The issuance and redemption of
units in all other forms of investment funds which are not
falling under the description of the last sentence (e.g. units
in foreign investment undertakings that are not allowed
to be marketed in Austria) will be executed by Erste
Group only in case of a customer instruction. A deviating
procedure applies for Exchange traded funds (ETFs) as
special form of investment funds. ETFs are executed solely
via stock exchange by Erste Group and hence the Execution
Principles under H.7.1 are applicable.
H.3. General information about execution
The Erste Group will execute customer orders for the
purchase and sale of financial instruments optimally in
accordance with the criteria set forth in H.6., either as a
commission agent or, in some cases, by trading for its own
account (see H.4.). In the event it is not a member of the
exchange, the Erste Group will forward the customer order
to third parties, who are then to execute it in accordance
with the Execution Principles of the Erste Group. Such third
parties are carefully selected by the Erste Group. The Erste
Group works only with third parties that are especially
reliable and have at most a negligible error rate. This is
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H.4. Fixed-price transactions
If the Erste Group and the customer agreed on a fixed
price for a certain financial instrument, this results in the
conclusion of a purchase contract. This involves a so-called
„fixed-price transaction” in which both the spread and the
commission is calculated into the price.
The Erste Group undertakes to ensure, paying due regard
to the rules on achieving optimal order execution, that
when trading for its own account, a result will normally be
reached that is equivalent to that which the Erste Group
would have achieved through execution of the order as a
commission agent. If trading is possible at an alternative
execution venue to which the Erste Group has access, it will
also accept orders at the customer‘s instruction to execute
at such execution venue (see H.9.).
H.5. Consolidation and allocation of orders
The Erste Group reserves the right to consolidate customer
orders with other customer orders or with transactions
for its own account. Orders will be consolidated only if
it is not to be expected that such consolidation will be
disadvantageous for the customer. In accordance with
statutory provisions, it should be noted that consolidation
of an order with other orders
and transactions may, however, be disadvantageous with
respect to a specific order.
In order to ensure fair consolidation of orders and their
subsequent allocation, guidelines for consolidation
and allocation have been established and effectively
implemented within the Erste Group.
If the Erste Group consolidates a customer order with an
order for its own account, and if the consolidated order is
executed only in part, the Erste Group will give the customer priority over its own transactions when allocating
the bundled transactions. However, in order for the Erste
Group to convincingly show that it could not have executed the order without consolidation, or not under equally
favourable terms, it will allocate the transaction for its own
account on a pro-rata basis.
H.6. Criteria for order execution
In achieving optimal results for customers in the long term,
the following criteria are relevant for the Erste Group:
–Rate/price
–Costs
– Probability of execution and settlement
–Speed
– Nature and scope of the order
The optimal result for the customer is determined by the
total fee (the total fee is based on the trading price, including the costs associated with order execution)
H.7. Execution venues
The Erste Group normally executes orders as a commission
agent, unless provided otherwise in the following. Orders
can be executed either on regulated markets or on multilateral trading facilities, as well as outside of these execution
venues.
H.7.1 Equities
Because equities are normally subject to price fluctuations,
meaning that it is impossible to rule out a price trend to the
detriment of the customer in the time following order issuance, consideration is given especially to those execution
venues on which it is likely to be possible to fully execute
the order in a timely manner pursuant to the criteria set
forth in H.6.
Consequently, orders will be preferentially executed on the
respective home exchange, since for reasons of liquidity,
less expensive execution is routinely possible there. The
term “home exchange” means the exchange where the
security was initially listed (usually, the exchange of the
country in which the issuer is located).
H.7.1.3. Sell orders will normally be executed in the
country in which the depository is also located, due to
costs associated with execution. This also applies to the
sale of subscription rights.
H.7.1.4. With respect to the above-listed execution venues, the following criteria may also have an effect on order
execution and lead to a deviation from the procedures
described in H.7.1.1. to H.7.1.3.:
–Time–related criteria
Differing order validity due to time zone differences or
exchange closing times
–Volume criteria
Denominations, taking into account the respective
execution venues, small and large orders
–Liquidity criteria
Higher liquidity on a different exchange
–Cost criteria
Lower costs in connection with order execution
on a different exchange
H.7.2. Bonds
H.7.2.1. The Erste Group offers the ability to buy and sell
bonds upon request directly at updated prices. They are
bought or sold at a fixed price agreed to with the Erste
Group (so-called „fixed price transaction“, see H.4.).
H.7.2.2. If a fixed-price transaction does not take place,
the Erste Group will at the customer’s instruction forward
orders for execution in the form of a commission
transaction on an exchange.
H.7.2.3. Sell orders will normally be executed in the country
in which the depository is also located, due to costs associated with execution.
H.7.1.1. Orders involving equities whose home exchange is
in Germany will be executed by the Erste Group primarily
on XETRA Frankfurt, due to costs associated with execution. If the corresponding security is not listed there, execution will take place on another German exchange pursuant
to the criteria set forth in H.6.
H.7.3. Certificates
H.7.1.2. Orders involving equities whose home exchange
is in the US will be executed by the Erste Group primarily
on NYSE. If the corresponding security is not listed there,
execution will take place on another exchange in the US
pursuant to the criteria set forth in H.6.
H.7.3.2. If a fixed-price transaction does not take place, the
Erste Group will at the customer’s instruction forward orders for execution in the form of a commission transaction
on an exchange.
H.7.3.1. The Erste Group offers certificates issued by itself
or others as a commission transaction for subscription or
purchase (and, in some cases, for redemption) at a fixed
price (so-called „fixed price transaction“, see H.4.).
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H.7.3.3. Sell orders will normally be executed in the country
in which the depository is also located, due to costs associated with execution.
H.7.4. Warrants
H.7.4.1. The Erste Group offers warrants issued by itself
or others as a commission transaction for subscription or
purchase (and, in some cases, for redemption) at a fixed
price (so-called „fixed price transaction“, see H.4.).
H.7.4.2. If a fixed-price transaction does not take place, the
Erste Group will at the customer’s instruction forward orders for execution in the form of a commission transaction
on an exchange.
H.7.4.3. Sell orders will normally be executed in the country
in which the depository is also located, due to costs
associated with execution.
H.7.5. Financial derivatives
H.7.5.1. These involve forward transactions that are traded
under standardised conditions on an exchange (futures,
options) or that are agreed to on an individual, over-thecounter (OTC) basis between the customer and the Erste
Group.
H.7.5.2. OTC derivatives are bought and sold at a fixed
price agreed to with the Erste Group (so-called „fixed price
transaction“, see H.4.).
H.7.5.3. Derivatives traded on foreign exchanges are settled
on the exchange at the lowest price via electronic trading
systems using the Smart Order Routing System
H.7.5.4. Products tradable on the Austrian derivatives
market are settled via the trading system EUREX.
H.8. System outages and other events
If unforeseen events occur (e.g. system outages), the Erste
Group may be forced to choose types of order execution
that are different from those stipulated in the Execution
Principles. In these cases as well, the Erste Group will
attempt to achieve optimal execution.
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H.9. Customer instructions
If the customer expressly requests that his or her order be
executed at a certain execution venue (so called “customer
instructions”), we will comply with this customer request.
The Execution Principles of the Erste Group are accordingly
not applicable in this case.
The Erste Group expressly points out that in the event
of customer instructions and resulting deviation from
the Execution Principles established herein, it may be
prevented from achieving the optimal result for the
customer.
H.10. Review of the guidelines for executing
customer orders
The selection of exchanges made in accordance with
these Principles will be reviewed annually by the Erste
Group. In addition, a review will be undertaken if there are
indications that essential criteria that militated in favour of
a certain exchange are no longer valid.
The Erste Group will notify customers about material
changes.
H.11. Execution venues on which Erste Group primarily
relies
German-speaking Region
Land
Ausführungsplatz
Austria
XETRA Wien
Germany
XETRA Frankfurt
Frankfurter Wertpapierbörse (XETRA II)
Börse Stuttgart
Börse Berlin
Börse Bremen
Europe
Czech Republic
Prague Stock Exchange
Croatia
Zagreb Stock Exchange
Denmark
Copenhagen Stock Exchange
Finland
Helsinki Stock Exchange
Frankreich
Euronext PARIS
Hungary
Budapest Stock Exchange
Italy
Borsa Italia (Milano)
Netherlands
Euronext Amsterdam
Norway
Oslo Stock Exchange
Poland
Warsaw Stock Exchange
Romania
Bukarest Stock Exchange
Sweden
Stockholm Stock Exchange
Switzerland
SIX Swiss EX
SWX
Overseas
Spain
Madrid Stock Exchange
United Kingdom
LONDON LSE
Australien
Sydney Stock Exchange
Hongkong
Hongkong Stock Exchange
Japan
Tokio Stock Exchange
Kanada
Toronto Stock Exchange
USA
NYSE NEW YORK
NASDAQ NMS
Exchange-traded derivative products
Deutschland
EUREX
Frankreich
Euronext
Großbritanien
LIFFE
USA
CBOE Chicago Stock Exchange
PHOE Philadelphia Stock Exchange
11
Information about us and our
securities services
I. Basics regarding the handling
of conflicts of interest
Erste Group has taken the following steps to ensure that
conflicts of interest between Erste Group and its customers
or among its customers do not have a negative effect on
customer interests:
I.1. Conflicts of interest can arise within Erste Group
Between our customers and
– our bank
– the employees of our bank
– other customers
When providing investment services/ancillary services,
especially in the following areas:
–financing
– investment research
– asset management
– investment banking
– retail distribution
– order execution for third parties
– market making
– securities custody services
In particular, from relationships
–of our bank with issuers of financial instruments, e.g.
via participation in supervisory or advisory boards, or
–of issuers of financial instruments with our bank, e.g. as
customers of our bank
From relationships of our bank with issuers of financial
instruments, where
– the issuer is a subsidiary of our bank or
–our bank maintains a direct or indirect investment in the
respective issuer of financial instruments.
In addition, conflicts of interest may arise if our bank
–participates in issues of financial instruments undertaken by the respective issuer,
–acts as lender/guarantor for the respective issuer of
financial instruments
–participates in the production of an investment research
of the respective issuer of financial instruments,
–makes/receives payments to/from the respective issuer
of financial instruments
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–collaborates with the respective issuer of financial
instruments or
–operates/holds direct or indirect subsidiaries/investments together with the respective issuer of financial
instruments.
I.2. Conflicts of interest can also arise where
–Our bank or relevant individuals from our bank has/
have access to information that is not yet public
knowledge at the time of the customer transaction
–There are incentives to give preference to a certain
financial instrument, e.g. when giving advice, making a
recommendation, or executing an order.
I.3. In order to avoid such conflicts of interest as far
as possible, our bank has a multi-tier organisation with
corresponding allocation of responsibilities.
As a credit institution, we and our employees are obligated
by law to provide securities services and ancillary services
in a fair, honest and professional manner and in the
interests of our customers and to avoid conflicts of interest
as far as possible.
Apart from this, we can draw upon a compliance
organisation, which can, in particular, take the following
actions:
–Set up confidentiality zones with so-called „Information
Barriers“, i.e. virtual or actual barriers to limit the flow of
information
–Promulgate guiding principles for employees when
dealing for their own account, in particular, supplementary provisions on custodial accounts for employees in
confidentiality zones
–Obligate all employees to disclose their transactions
involving financial instruments
–Implement on-going monitoring of all employee
transactions involving financial instruments
–Maintain watch lists and blacklists for financial instruments that are prone to conflicts of interest. Transactions involving
financial instruments on the watch list are permitted
subject to certain restrictions, but they are centrally
monitored. Transactions involving financial instruments
on the blacklist are prohibited.
–Create rules regarding the acceptance and execution of
orders
–Create rules regarding the acceptance of gifts and other
benefits
–Procedures for the allocation of financial instruments in
primary issues
–Product approval process in case of new products
–Procedures for employee’s remuneration to ensure
objective advisory in the client’s interest and to avoid
preferential sale of specific financial instruments
–Obligation for all employees to disclose additional occupations, participations and mandates
–On-going training of our employees
K. Costs and ancillary costs
I.4. If certain conflicts of interest cannot be avoided through
the aforementioned allocation of responsibilities or our
compliance organisation, we will inform our customers
thereof in accordance with these Principles. In such cases,
we will refrain from making assessments, giving advice,
or making recommendations concerning the relevant
financial instrument.
Your advisor will be glad to answer any of your questions
in connection with this brochure.
This list shows the retained sales commissions in the
securities and derivatives business of Erste Group.
Please see the posted terms and conditions or the specific
product sheet for additional charges and costs (available
from your advisor)
(table, see page 14)
J. Reporting duties with regard
to customers
We will provide you with a statement of your individual
securities orders as soon as possible, but in any case not
later than on the banking day following execution of the
order.
Every six months, if necessary, we will send you information regarding orders that you have placed for routine
execution.
Likewise, every six months we will send you a list of
those securities orders that were settled in connection
with portfolio management. You can arrange with your
customer advisor to have this material sent at a different
interval.
You will receive a complete list of your securities once each
year via the custodial account statement. The complete
list can be dispensed with if the necessary information is
included in a periodic report.
13
Information about us and our
securities services
Product group
Maturity
Sales commission retained by Erste Group
Equities
–
0–1.10 % of the trading price
Bonds
(interest rates, EUR and foreign currency, structured
equities, indexes, commodities, loans, currencies,
funds, etc.)
up to 3 years
more than 3
years
0 – 3.00 %
0 – 6.00 %
Certificates (incl. alternative investments)
all maturities
Depending on the type of listing 0– 5.00 %
of the trading price or nominal value
Warrants (interest rates, currencies)
all maturities
0.0 – 3.00 %
Options (exchange-traded abroad/al foreign exchanges)for: shares, indexes, commodities, interest rates,
and currencies
–
Purchase/sale: max. 3.00% of premium, max.
EUR 100 base amount, max. EUR 150 minimum
fee per order
Futures (exchange-traded abroad/all foreign exchanges) for: shares, indexes, commodities, interest rates,
and currencies
–
Purchase/sale: 8.50 euros up to maximum
120 euros per contract, max. 100 euros basis
amount, max. 150 euros minimum fee per
order
Funds
Closed-end funds
Unless indicated otherwise, percentages relate to the nominal value.
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All fees and commissions for fund transactions
can be found in the short-form prospectus
(KID) of the relevant fund or in the posted
terms and conditions
all maturities
up to 5.00% of the investment