MiFID refers to the Markets in Financial Instruments Directive (2004/39/EC) that has been adopted in 2007 by all European Union (EU) member states, creating a single authorisation for investment firms enabling them to conduct business anywhere in the EU. It refers to the provision/performance of investment services/activities and the operation of regulated markets. The main objectives of the MiFID are to increase competition and consumer protection in investment services.
As part of a number of measures enacted in response to the financial crisis, in April 2014, the European Parliament approved an updated version of the MiFID, the Directive 2014/65/EU (herein after “MiFID II”), and its accompanying Regulation (EU) 600/2014, known as “MiFIR”, which became effective in January 3, 2018.
The local transposed MiFID II Law is cited as the Investment Services and Activities and Regulated Markets Laws of 2017 (Law 87(I)/2017).
MiFID II, Law 87(I)/2017 and MiFIR expand the scope of the original MiFID legislation, cover a larger group of financial products and seek to make financial markets in Europe more resilient, transparent and investor friendly.
Scope of MiFID
Which Firms are affected by MiFID?
MiFID applies mainly to:
Key Areas of MiFID
- Authorisation, regulation and passporting
- Client categorisation
- Client order handling
- Pre-trade transparency
- Post-trade transparency
- Best execution
- Conflict of Interests
- Outsourcing