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THE ENTRY INTO FORCE OF THE MIFID II DIRECTIVE HAS HAD A VERY SUBSTANTIAL IMPACT ON PRIVATE BANKING ACTIVITY.

2018 was a year of great challenges for Bankia Banca Privada, on account of a change in its customer segmentation model, following the entry into force of the MiFID II directive and the integration of the BMN network.

Moreover, these challenges had to be met in a highly volatile market environment, in which a high proportion of assets had negative yields, especially the more conservative euro area portfolios.

This translated into an increasing demand for information and monitoring, which explains Bankia Banca Privada’s decision to lower the cut-off point from 1,000,000 to 500,000 euros, thus giving a larger number of customers access to its services.

Customers did not have to change branch to do so: while staying with their usual branch, they were given access to a specialist in markets, taxation, investment products and services to supplement the advice given by their usual financial adviser.

The integration of BMN allowed the bank to open three new Banca Privada branches in Murcia, Granada and Palma de Mallorca

ADVICE

The entry into force of the new MiFID II Directive has had a very significant impact on the activity of Bankia Banca Privada, whose model of recurring non-independent advice includes a wide range of proprietary and third-party products and services and a typically fluid, transparent relationship. Portfolio management plays a predominant role, but without neglecting brokerage in cases where customers decide to make their own investment decisions, taking advantage of the opportunities provided by online banking.

Thanks to the integration of the BMN network, three new Bankia Banca Privada branches were opened in BMN’s areas of influence: Murcia, Granada and Palma de Mallorca.

As a result, at 31 December 2018 the Bankia Banca Privada team is made up of 95 people, 75 of whom managed 6,504 portfolios, with a total business volume of 6,475.53 million euros.

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