The amended and recast Markets in Financial Instruments Directive and Regulation (MiFID II) and other important information

Background

As of 3 January 2018, NAB London is subject to the updated Markets in Financial Instruments Directive (MiFID II).

MiFID II impacts the majority of European Economic Area (EEA) financial services providers (including NAB London) and the way in which they provide investment services to both EEA and non-EEA clients.

This site contains information regarding NAB’s MiFID II responses and reports in relation to the different areas of MiFID II.

More Information about NAB’s MiFID II Response

If you have any questions about our response to MiFID II, please contact cordd.london@eu.nabgroup.com.

Important disclosures

NAB London Data Protection Notice

The European Union General Data Protection Regulation (EU GDPR) establishes a uniform data protection law across the European Economic Area (EEA) and aims to protect the privacy and use of EEA resident’s personal data in an increasingly digital world. As such, we (National Australia Bank) are required to comply with the EU GDPR since we process personal data relating to EEA residents.

National Australia Bank Limited which has its UK branch (number BR001924) at 52 Lime Street, London EC3M 7AF ('NAB', 'we' or 'us') provides banking services to businesses. The EU General Data Protection Regulation 'Privacy statement (UK)' tells you how we collect, use, store and share personal information when we provide these services and the appropriate measures we undertake to ensure that we can engage securely with and for customers.

Please familiarise yourself with the NAB European General Data Protection Regulation (EU GDPR) statement.

NAB European General Data Protection Regulation (EU GDPR)

NAB London Complaints Procedure

Complaints procedure

NAB places great importance on providing the highest standards of service to our customers.

If you feel that on this occasion we have not met the high standards we strive to achieve then we encourage you to let us know. Your feedback is important as it allows us to improve our services and the products that we offer.

We aim to get your complaint resolved as quickly as possible by the appropriate staff with the experience, knowledge and authority to handle your complaint efficiently and effectively.

We therefore aim to:

  • make it easy for you to raise your complaint;
  • listen to your complaint;
  • consider your suggestions in putting matters right;
  • ensure you are satisfied with how your complaint was handled;
  • be polite, efficient and fair in all of our dealings with you.

This procedure explains what to do if you have a complaint about any of our services or products. It also outlines the timescales you should expect for resolving complaints and who to contact if you are not satisfied with our response.

How and where to complain

If you are dissatisfied with any aspect of our service or products, there are several ways in which you can choose to raise a complaint. You can advise us in person, in the first instance by contacting your usual business contact. If the issue is not resolved please email our Complaints Officer Simon Nye at at simon.z.nye@eu.nabgroup.com.

What we will do

We aim to resolve all complaints promptly and will acknowledge your complaint upon receipt. Our acknowledgement will outline the steps we propose to take in order to resolve your complaint. Sometimes, due to the nature of the issue we will need time to investigate it, but we will keep you updated on our progress and the anticipated timescales for responding to you.

Where we are unable to resolve your complaint after three business days, we will write to you or email you to acknowledge your complaint and to explain the action that we intend to take and who will be dealing with your complaint.

What to do if you are unhappy with our response

If you are not satisfied with our final response, you have the right to take legal action if you consider this necessary.

Summary of NAB’s Conflicts of Interest Policy

Please familiarise yourself with NAB’s Conflicts of Interest Policy.

The NAB Group's corporate governance framework plays a key role in supporting our business operations. It provides clear guidance on how authority is exercised within the group.

As a fundamental element of our culture and business practices, our corporate governance framework provides guidance for effective decision making in all areas of the Group through:

  • strategic and operational planning
  • risk management and compliance
  • financial management and external reporting
  • succession planning and culture
  • managing customer experiences and outcomes.

The Group's corporate governance framework plays a key role in supporting our business operations.

You can read about the key aspects of our corporate governance framework and practices for the 2019 year in the Corporate Governance Statement (PDF, 2.7MB), and our compliance with the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations is shown in our 2019 Appendix 4G (PDF, 102KB).

Key documents and policies which form part of our corporate governance framework and highlight the Group's significant commitment to corporate governance are set out below.

Summary of National Australia Bank's Policy on conflicts of interest applicable to National Australia Bank Limited and its controlled entities

Overview

The National Australia Bank Group (NAB) operates in a number of jurisdictions across the globe, providing a wide range of financial services to a broad customer base. NAB will face actual, potential or apparent conflicts of interest on a regular basis in the course of its normal business activities.

NAB has internal policies and procedures in place to identify and manage conflicts of interest, and to prevent those that cannot be managed. This document provides a description of those policies and procedures in summary form.

Identification of conflicts of interest

Conflicts may arise in a number of circumstances in the course of NAB’s business, including where:

  • NAB’s interests conflict with those of its customers;
  • the interests of NAB’s directors, offices, employees and secondees or contract hires of NAB (a “NAB Person”) conflict with those of its customers;
  • the interests of NAB and a NAB Person conflict;
  • the interests of differing NAB entities conflict; or
  • conflicts of interest may occur between different customers of NAB.

NAB also has principal interests of its own and maintains procedures appropriate to keep separate these interests from those of its customers.

Management of conflicts of interest

NAB’s policies and procedures describe the methods which NAB may use to manage actual, potential or apparent conflicts of interest. These include (but are not limited to) physical, technological and organisational arrangements to protect customer interests and to manage actual or potential conflicts of interest. Most importantly, NAB Persons who undertake different business activities must do so with an appropriate degree of independence.

NAB also maintains certain arrangements that prevent or control the flow of information between NAB Persons performing particular roles involving a risk of a conflict of interest where the exchange of information may harm the interests of one or more of NAB’s customers.

In certain instances, where NAB determines that a conflict cannot be adequately managed, NAB will decline to proceed with the proposed service or transaction. Alternatively, NAB may determine that it is possible to proceed, but that additional disclosure regarding conflicts is required as per the “Disclosure” section below.

Disclosure

There may be occasions when NAB’s procedures and controls are not sufficient to ensure, with reasonable confidence, that risks of damage to the interests of a customer will be prevented. Should this occur, and in accordance with applicable regulatory requirements, before undertaking the business on the customers behalf, NAB shall clearly disclose the general nature and/or sources of the potential conflict to the customer and steps taken to mitigate the potential conflict in sufficient detail to enable the customer to make an informed decision and, in appropriate circumstances, NAB may obtain the customer’s written consent before proceeding.

Further information

Detailed internal NAB policy documents and operating procedures may not be fully represented in the summary description set out above. If you would like further information regarding NAB’s conflicts of interest policies and procedures, please get in touch with your usual NAB contact.

Information on risks, costs and charges for financial instruments offered from NAB London

Please familiarise yourself with the information (including Risks, Costs and Charges) related to the MiFID II regulation.

Systematic Internaliser Commercial Policy - NAB London

Execution Policy - NAB London

Please refer to our Execution Policy (PDF, 165KB)

National Australia Bank Ltd RTS 28 Top 5 Execution Venues

NAB London branch does not select execution venues in the manner contemplated by RTS 28 (Commission Delegated Regulation (EU) 2017/576). On client transactions, the execution venue is always determined by the manner in which our client engages with us.

For our business, the only circumstances relevant to RTS 28 involve over-the-counter trading and, in those cases, NAB will always be the execution venue.

For the purposes of Article 3(3) of RTS 28, please note that for relevant transactions, NAB London branch achieves best execution by the application of its order execution policy.

NAB does not conduct MiFID business with retail clients

National Australia Bank Ltd RTS 28 Top 5 Execution Venues Year ending 31 December 2019 (CSV, 5KB)

National Australia Bank Ltd RTS 28 Top 5 Execution Venues Year ending 31 December 2018 (CSV, 5KB)

National Australia Bank Ltd RTS 28 Top 5 Execution Venues Year ending 31 December 2017 (CSV, 5KB)

NAB Europe Ltd RTS 28 Top 5 Execution Venues

NAB Europe Limited does not select execution venues in the manner contemplated by RTS 28 (Commission Delegated Regulation (EU) 2017/576). On client transactions, the execution venue is always determined by the manner in which our client engages with us.

For our business, the only circumstances relevant to RTS 28 involve over-the-counter trading and, in those cases, NAB Europe Limited will always be the execution venue.

For the purposes of Article 3(3) of RTS 28, please note that for relevant transactions, NAB Europe Limited achieves best execution by the application of its order execution policy.

NAB Europe Limited does not conduct MiFID business with retail clients

NAB Europe Ltd RTS 28 Top 5 Execution Venues Year ending 31 December 2019 (CSV, 1KB)

NAB Europe Ltd RTS 28 Top 5 Execution Venues Year Ending 31 December 2018 (CSV, 1KB)

NAB Europe Ltd RTS 28 Top 5 Execution Venues Year Ending 31 December 2017 (CSV, 1KB)

NAB London Allocation Policy

Please refer to our Allocation Policy (PDF, 236KB)

Best Execution Reporting (RTS 27)

As execution venues, National Australia Bank Limited and NAB Europe Limited have the obligation to publish certain data on the quality of execution for financial instruments not subject to the trading obligation (under articles 23 and 28 of Regulation (EU) No 600/2014).

Under Regulation (EU) 2017/575 (known as RTS 27 which prescribes the data to be published by execution venues on the quality of execution of transactions), National Australia Bank Limited and NAB Europe Limited publishes information to cover the following report content:

  • Type of execution venue (table 1)
  • Type of financial instrument (table 2)
  • Price information (tables 3 and 4)
  • Likelihood of execution (table 6)
  • Additional information for request for quote (table 9)

We do not prepare and publish tables 5, 7 and 8 under RTS 27 as they are not relevant to our activities as an execution venue.

The data in the tables is prepared on a best efforts basis, but is incomplete in some respects. For example there are gaps in the capture of all quote and order data.

Time Period 1 January 2020 to 31 March 2020

National Australia Bank Limited (ZIP, 7KB)

National Australia bank Limited – systematic Internaliser (MIC Code NABA) (ZIP, 123KB)

NAB Europe Limited - No transactions during the period

NAB Europe Limited – Systematic Internaliser (MIC Code NABU) (ZIP, 31KB)

Time Period 1 October 2019 to 31 December 2019

National Australia Bank Limited (ZIP, 7KB)

National Australia Bank Limited - Systematic Internaliser (MIC Code NABA) (ZIP, 122KB)

NAB Europe Limited - No transactions during the period

NAB Europe Limited - Systematic Internaliser (MIC Code NABU) (ZIP, 23KB)

Time Period 1 July 2019 to 30 September 2019

National Australia Bank Limited (ZIP, 5KB)

National Australia Bank Limited - Systematic Internaliser (MIC Code NABA) (ZIP, 140KB)

NAB Europe Limited - No transactions during the period

NAB Europe Limited - Systematic Internaliser (MIC Code NABU) (ZIP, 25KB)

Time period 1 April 2019 to 30 June 2019

National Australia Bank Limited (ZIP, 7KB)

National Australia Bank Limited - Systematic Internaliser (MIC code NABA) (ZIP, 112KB)

NAB Europe Limited - No transactions during the period

NAB Europe Limited - Systematic Internaliser (MIC code NABU) (ZIP, 26KB)

Time period 1 January 2019 to 31 March 2019

National Australia Bank Limited (ZIP, 19KB)

National Australia Bank Limited - Systematic Internaliser (MIC code NABA) (ZIP, 141KB)

NAB Europe Limited - No transactions during the period.

NAB Europe Limited - Systematic Internaliser (MIC code NABU) (ZIP, 38KB)

Time period 1 October 2018 to 31 December 2018

National Australia Bank Limited (ZIP, 24KB)

National Australia Bank Limited - Systematic Internaliser (MIC code NABA) (ZIP, 124KB)

NAB Europe Limited (ZIP, 16KB)

NAB Europe Limited - Systematic Internaliser (MIC code NABU) (ZIP, 26KB)

Time period 1 July 2018 to 30 September 2018

National Australia Bank Limited (ZIP, 162KB)

National Australia Bank Limited – Systematic Internaliser (MIC code NABA) (ZIP, 5KB)

NAB Europe Limited (ZIP, 35KB)

NAB Europe Limited – Systematic Internaliser (MIC code NABU) (ZIP, 5KB)

Time period 1 April 2018 to 30 June 2018

National Australia Bank Limited (ZIP, 364KB)

NAB Europe Limited (ZIP, 88KB)

Time period 1 January 2018 to 31 March 2018

National Australia Bank Limited (ZIP, 5MB)

NAB Europe Limited (ZIP, 2.5MB)

Placement and Underwriting information for issuer clients

European union benchmarks regulation

Background

The Benchmark Regulation EU 2016/1011 of the European Parliament and of the Council dated 8 June 2016 (the BMR), was introduced due to concerns about the accuracy and integrity of indices used as benchmarks in financial markets. The BMR builds upon the global standards set out in principles published by the International Organisation of Securities Commissions (IOSCO) known as the “Principles for Financial Benchmarks” and imposes certain requirements on firms that provide, contribute to or use benchmarks in the European Union (EU) as defined in the BMR.

Although the BMR came into effect on 1 January 2018, it contains transitional arrangements for existing European Union (EU) and third country benchmark administrators, allowing these administrators to apply for authorisation before 1 January 2020. On 26 February 2019, the European Council and Parliament reached a political agreement to amend the BMR to extend the transitional provisions for critical and third country benchmarks for a further two years to 1 January 2022. As a result, significant and non-significant EU benchmarks are required to be authorised by 1 January 2020 for use within the EU.

EU supervised entities within the National Australia Bank Ltd group of companies (together NAB) are required to comply with the BMR, when relevant.

NAB robust written plan

Article 28.2 of the BMR provides, among other things, that:

EU supervised entities that use benchmarks must produce and maintain a robust written plan setting out the actions to be taken in the event that one or more benchmarks materially change or cease to be provided. Where feasible and appropriate, the plan shall nominate one or several alternative benchmarks that could be referenced to substitute the benchmarks no longer provided, indicating why such benchmarks would be suitable alternatives.

NAB has written “Financial Benchmark Fallback Plan” to address the requirement in Article 28(2) of the BMR (the Plan). This webpage contains a high-level summary of that Plan. Following a benchmark cessation or material change to a benchmark (together, a Trigger Event), NAB will invoke its Plan.

As a first step a qualitative assessment will be conducted to determine the materiality of the impact of the Trigger Event. Based on this materiality assessment an escalation decision will be made, after which a further, detailed impact assessment may be executed. This detailed assessment will include a quantitative and qualitative assessment of the Trigger Event, including where appropriate:

  • Identification of all products, transactions and counterparties including an impact analysis in terms of notional values, risk exposures and type of legal agreements;
  • A review of affected agreements, products, counterparties and transactions including checking whether the existing contractual arrangements already contain alternative benchmarks and to what extent a benchmark event frustrates or otherwise breaches the terms of any financial contract or financial instrument; and
  • A qualitative review of the impact to internal systems, models and processes.

The overall purpose of the steps outlined above is to identify, where feasible and appropriate, a suitable and appropriate alternative benchmark that can be referenced in substitute of the existing benchmark subject to the Trigger Event. NAB will follow market standards to identify such alternative benchmarks as much as possible. For example, it is expected that for “critical benchmarks” (as defined in Article 20(1) BMR) the market, for example a Central Bank or working group or calculation agent, will nominate an alternative benchmark which NAB expects to include in new contractual agreements, where appropriate and relevant.

If it has not been feasible and appropriate to nominate an alternative benchmark based on market standards, a proposal of actions to be taken in relation to the affected benchmark may be prepared. The proposal will take into account the impact assessment and shall consider the replacement of that benchmark with an alternative benchmark, seeking approval or notifying a regulatory body (where relevant), amendment to contractual documentation, and notification of stakeholders.

Once the proposal has been approved, internal stakeholders will work together to implement the proposal. For example, clients may be notified or their consent may be sought to change the benchmark, and contractual documentation may be amended.

The description above is a high-level summary of the Plan only, and the process to be taken in relation to different countries, business lines or circumstances may differ. This summary only serves to provide general background information, is indicative and not necessarily complete or correct and is not intended to provide any individual, legal or other advice. The Plan and this summary are subject to change without notice.

Details of the BMR are available at: https://ec.europa.eu/info/law/benchmarks-regulation-eu-2016-1011_en

Financial Benchmark Reform – Disclosures for Derivatives, Floating Rates Notes and Loans