REGULATORY DISCLOSURES AND CONFLICTS OF INTEREST

Ancillary securities-related services

DZ BANK Research offers the clients of DZ BANK AG the following services:

  • Economic research and forecasts
  • Financial analyses and other forms of generic investment recommendations on issuers of and / or transactions in securities and other financial instruments
  • Investment research and other forms of generic studies and investment recommendations on commodities, currencies, reference values, indices, investment strategies and other capital and / or financial market ratios
  • Investment research and other forms of generic studies and recommendations on the underlyings of certificates, options, futures, swaps, forwards and other derivatives 

Regulatory framework

The ancillary securities-related services of DZ BANK Research are subject to the requirements currently set forth in the acts of the European Union as well as the transforming German acts decreed in respect thereof, in particular:

  • Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (Market Abuse Regulation - MAR) as well as the delegated acts of the Commission decreed in respect thereof, in particular

    Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 regarding the objective presentation of investment recommendations, other information recommending or suggesting an investment strategy and on the disclosure of particular interests and indications of conflicts of interest

  • Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments (MiFID II) as well as the delegated acts of the Commission decreed in respect thereof, in particular

    Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 regarding the organizational requirements, operating conditions for investment firms and defined terms

    Commission Delegated Directive (EU) 2017/593 of 7 April 2016 regarding the safeguarding of financial instruments and funds belonging to clients, product governance obligations and the rules applicable to the provision or reception of fees, commissions and monetary or non-monetary benefits

  • the relevant provisions of the Securities Trading Act (Wertpapierhandelsgesetz - WpHG) and the regulations decreed in respect thereof

Competent supervisory authorities

DZ BANK is supervised as a credit institution and as an investment firm by:

  • European Central Bank, Sonnemannstraße 20 in 60314 Frankfurt / Main, www.ecb.europa.eu

and as an investment firm by

  • Bundesanstalt für Finanzdienstleistungsaufsicht, Marie-Curie-Straße 24 - 28 in 60439 Frankfurt / Main, www.bafin.de

Recipients of research reports prepared by DZ BANK Research

  • Financial analyses

    are directed at eligible counterparties and professional clients. Therefore,  they are not suitable for retail clients unless

    (a) a particular financial analysis has been explicitly labelled as appropriate for retail clients, or

    (b) it is properly disseminated by an investment firm authorized in the European Economic Area (EEA) or Switzerland to retail clients, who evidently have the necessary knowledge and sufficient experience in order to understand and evaluate the relevant risks of the relevant evaluation and / or recommendations.

    They have been approved by DZ BANK only for dissemination to the aforementioned recipients in Member States of the EEA and Switzerland.

  • Other Research Information

    are directed at eligible counterparties and professional clients. Therefore,  they are not suitable for retail clients unless

    (a) a particular Other Research Information has been explicitly labelled as appropriate for retail clients, or

    (b) it is properly disseminated by an investment firm authorized in the European Economic Area (EEA) or Switzerland to retail clients, who evidently have the necessary knowledge and sufficient experience in order to understand and evaluate the relevant risks of the relevant evaluation and / or recommendations.

  • They have been approved by DZ BANK only for dissemination to the aforementioned recipients in Member States of the EEA and Switzerland.

Mandatory disclosures and DZ BANK Research information requiring disclosure

The regulatory disclosures provided for by the above mentioned supervisory regulations for the framework conditions for and information relating to the activities of DZ BANK Research is set forth below as follows:

  1. Conflicts of interests and managing conflicts of interest by DZ BANK Research:
    Conflicts of interests and managing conflicts of interest by DZ BANK Research

  2. Definitions of the 'keys' in investment recommendations according to § 85 WpHG of DZ BANK Research which indicate potential conflicts of interest regarding specific issuers:

    1) DZ BANK owns a net long position exceeding 0,5% of the total issued share capital of the issuer, calculated according to Article 3 of Regulation (EU) No. 236/2012 and Chapter III and IV of Commission Delegated Regulation (EU) No. 918/2012.

    2) DZ BANK owns a net short position exceeding 0,5% of the total issued share capital of the issuer, calculated according to Article 3 of Regulation (EU) No. 236/2012 and Chapter III and IV of Commission Delegated Regulation (EU) No. 918/2012

    3) DZ BANK or any of its affiliates beneficially owns 1 % or more of any class of common equity securities of the issuer.

    4) The issuer holds shares of DZ BANK exceeding 5 % of its total issued share capital.

    5) DZ BANK, any of its affiliates or a natural or legal person involved in the preparation of the investment recommendation acting under contract, is a market maker, designated sponsor and / or liquidity provider in financial instruments of the issuer at the time of publication of this research report.

    6) DZ BANK, any of its affiliates or a natural or legal person involved in the preparation of the investment recommendation acting under contract, has managed or co-managed a private and / or publicly disclosed offering of financial instruments of the issuer in the past 12 months.

    7) The issuer is or has been a client to DZ BANK regarding investment banking services over the 12-month period preceding the date of publication of this research report.

    8) DZ BANK or any of its affiliates received compensation for investment banking services from the issuer in the past 12 months.

    9) DZ BANK or any of its affiliates expects to receive or intends to seek compensation for investment banking services from the issuer in the next 3 months.

    10) The issuer is or has been a client to DZ BANK, to any of its affiliates or a natural or legal person involved in the production of the investment recommendation acting under contract regarding non-investment banking securities-related services, as set out in Sections A and B of Annex I of Directive 2014/65/EU, which agreement has been in effect or has given rise to the obligation to pay or receive compensation during the 12-months period preceding the date of publication of this research report.

    11) The issuer is or has been a client to DZ BANK regarding non-securities services over the 12-month period preceding the date of publication of this research report.

    12) DZ BANK and / or any of its affiliates have been a party to an agreement with the issuer relating to the preparation of investment recommendations concerning financial Instruments issued by him.

  3. The issuers covered by DZ BANK Research in respect of which interests and / or conflicts of interest exist that must be stated using the "key" defined above can be found here:
    Potential conflicts of interest (PDF)

  4. Mandatory disclosures for financial analyses on issuers, securities and other financial instruments of DZ BANK Research:

    Financial analyses are independent client information containing generic investment recommendations for specific issuers and / or specific financial instruments, but they do not make allowance for any individual investment criteria.
    Disclosures for financial analyses

  5. Mandatory disclosures for other research information of DZ BANK Research:

    Other research information is independent client information which does not contain any investment recommendations for specific issuers or specific financial instruments. Such information does not make allowance for any individual investment criteria.

    Disclosures for other research information
    Disclosures for economic publications

  6. Quarterly statistics on the percentage distribution of the categories for investment recommendations for equities and fixed income instruments, also in relation to the analysed issuers to whom securities-related services and / or ancillary securities-related services have been rendered by DZ BANK AG:
    Quarterly statistics

  7. 12-month statistics for all investment recommendations contained in financial analyses of DZ BANK Research:

1) The rating history for publications on Linde AG is valid through 10/13/2017 for the share with ISIN DE0006483001, thereafter for the share with ISIN DE000A2E4L75.

2) This table lists the investment recommendations for issuers of the senior unsecured instruments of a certain group parent company, grouped together under the name of this group parent company even if the aforesaid is not itself the issuer. The investment recommendations of these issuers do not differ since the group consideration lies at the forefront of attention. The individual legal issuers allocated for this purpose to a group parent company named her are accordingly listed in the following tables:
Financials, Corporates, Emerging Markets, EMU Countries

3) The investment recommendations for covered bonds shown in this table are valid for one day. The covered bond issuers with their legal form and their country of origin are listed in the following table:
Covered Bonds

Disclaimer

  1. Research Reports are directed at eligible counterparties and professional clients. Therefore, they are not suitable for retail clients unless

    (a) it has been explicitly labelled as appropriate for retail clients, or

    (b) is properly disseminated by an investment firm authorized in the European Economic Area (EEA) or Switzerland to retail clients, who evidently have the necessary knowledge and sufficient experience in order to understand and evaluate the relevant risks of the relevant evaluation and / or recommendations.

    Research Reports are prepared by DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, Germany ('DZ BANK') and have been approved by DZ BANK only for dissemination to the aforementioned recipients in Member States of the EEA and Switzerland.

    If a Research Report is expressly marked as ‘Financial Analysis’ in sub-section 1.1 of its Mandatory Disclosures, its distribution to recipients is subject to the section International Restrictions of Use and these additional rules:

    This Financial Analysis may only be brought into the Republic of Singapore by DZ BANK via the DZ BANK Singapore Branch, but not by other persons, and may only be disseminated there to 'accredited investors' and / or 'expert investors' and used by them.
    It is neither allowed to provide Financial analyses to customers in the United States of America (USA) nor to conclude corresponding transactions with them.

    If this Research Report is expressly marked as ‘Other Research Information’ in sub-section 1.1 of its Mandatory Disclosures, its dissemination to recipients is subject to these additional rules:

    It is neither allowed to provide Other Research Information to customers in the United States of America (USA) nor to conclude corresponding transactions with them.

    The dissemination of Other Research Information in the Republic of Singapore is in any case restricted to DZ BANK AG Singapore Branch.

    In all before named countries, Research Reports may only be distributed in accordance with the respective applicable laws and rules, and persons obtaining possession of this document should inform themselves about and observe such laws and rules.

  2. Research Reports are being handed over solely for information purposes and may not be reproduced, redistributed to other persons or be otherwise published in whole or in part. All copyrights and user rights to this document, also with regard to electronic and online media, remain with DZ BANK.

    Whilst DZ BANK may provide hyperlinks to web sites of companies mentioned in a Research Report, the inclusion of a link does not imply that DZ BANK endorses, recommends or guarantees any data on the linked page or accessible therefrom. DZ BANK accepts no responsibility whatsoever for any such links or data, nor for the consequences of its use.

  3. A Research Report is not to be construed as and does not constitute an offer, or an invitation to make an offer, to buy securities, other financial instruments or other investment objects.

    Estimates, especially forecasts, fair value and / or price expectations made for the investment objects analyzed in a Research Report may prove incorrect. This may occur especially as a result of unpredictable risk factors.

    Such risk factors are in particular, but not exclusively: market volatility, sector volatility, measures undertaken by the issuer or owner, the general state of the economy, the non-realisability of earnings and / or sales targets, the non-availability of complete and / or precise information and / or later occurrence of another event that could lastingly affect the underlying assumptions or other forecasts on which DZ BANK relies.

    The estimates made should always be considered and evaluated in connection with all previously published relevant documents and developments relating to the investment object and to the relevant sectors and, in particular, capital and financial markets.

    DZ BANK is under no obligation to update a Research Report. Investors must inform themselves about the current development of business as well as of any changes in the business development of the companies.

    During the validity period of an investment recommendation, DZ BANK is entitled to publish a further or other analysis based on other, factually-warranted or even missing criteria on the investment object.

  4. DZ BANK has obtained the information on which Research Reports are based from sources believed to be essentially reliable, but has not verified all of such information. Consequently, DZ BANK does not make or provide any representations or warranties regarding the preciseness, completeness or accuracy of the information or the opinions contained in this document.

    Neither DZ BANK nor its affiliated companies accept any liability for disadvantages or losses incurred as a result of the distribution and / or use of a Research Report and / or which are connected with the use of a Research Report.

  5. DZ BANK and its affiliated companies are entitled to maintain investment banking and business relationships with the company or companies that are the subject of the analysis contained in this document. Within the limits of applicable supervisory law, DZ BANK’s research analysts also provide information regarding securities-related services and ancillary securities-related services.

    Investors should assume that (a) DZ BANK and its affiliated companies are or will be entitled to engage in investment banking operations, security operations or other business transactions from or with the companies that are the subject of the analysis contained in a Research Report, and that (b) analysts involved in the preparation of a Research Report can generally be indirectly involved in the conclusion of such business transactions to the extent permitted by supervisory law.

    DZ BANK and its affiliated companies and their employees may have positions in securities of the analyzed companies or investment objects or effect transactions with these securities or investment objects.

  6. The information and recommendations of DZ BANK contained in Research Reports do not constitute any individual investment advice and, depending on the specific investment targets, the investment horizon or the individual financial situation, may therefore be unsuitable or only partially suitable for certain investors. In preparing Research Reports DZ BANK has not and does not act in the capacity of an investment advisor to, or asset manager for any person.

    The recommendations and opinions contained in Research Reports constitute the best judgment of DZ BANK’s research analysts at the date and time of preparation of the Research Report and are subject to change without notice as a result of future events or developments. Research Reports constitute independent appraisal of the relevant issuer or investment objects by DZ BANK; all evaluations, opinions or explanations contained herein are those of the author of a research Report and do not necessarily correspond with those of the issuer or third parties.

    Any decision to effect an investment in securities, other financial instruments, commodities, merchandise or other investment objects should not be made on the basis of a Research Report, but on the basis of independent investment analyses and methods as well as other analyses, including but not limited to information memoranda, sales or other prospectuses. A Research Report can be no replacement for individual investment advice.

  7. By using a Research Report, in any form or manner whatsoever, or referring to it in your considerations and / or decisions, you accept the restrictions, specifications and regulations contained in this disclaimer as being exclusively and legally binding for you.

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Additional Information of Markit Indices Limited

Neither Markit, its affiliates or any third party data provider makes any warranty, express or implied, as to the accuracy, completeness or timeliness of the data contained herewith nor as to the results to be obtained by recipients of the data. Neither Markit, its affiliates nor any data provider shall in any way be liable to any recipient of the data for any inaccuracies, errors or omissions in the Markit data, regardless of cause, or for any damages (whether direct or indirect) resulting therefrom.

Markit has no obligation to update, modify or amend the data or to otherwise notify a recipient thereof in the event that any matter stated herein changes or subsequently becomes inaccurate.

Without limiting the foregoing, Markit, its affiliates, or any third party data provider shall have no liability whatsoever to you, whether in contract (including under an indemnity), in tort (including negligence), under a warranty, under statute or otherwise, in respect of any loss or damage suffered by you as a result of or in connection with any opinions, recommendations, forecasts, judgments, or any other conclusions, or any course of action determined, by you or any third party, whether or not based on the content, information or materials contained herein.