MiFID is the Markets in Financial Instruments Directive (2004/39/EC) that has been adopted by all European Union (EU) member states and is in full force since 1 November 2007, 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.
The local transposed MiFID Law is cited as the Investment Services and Activities and Regulated Markets Laws of 2007 to 2016 (Law 144(I)/2007, as amended and ratified from time to time).
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 are set to take effect 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)/2007) and will be effective as of January 3, 2018.
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