Markets in Financial Instruments Directive (MiFID), is the European Directive that has been adopted by all member states of the European Union (EU) 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 Law (herein after “MiFID II”), and its accompanying Regulation, known as “MiFIR”. The Directive and Regulation expand the scope of the original MiFID legislation and cover a larger group of financial products.

MiFID II seeks to make financial markets in Europe more resilient, transparent and investor-friendly.

Both MiFID II and MiFIR are set to take effect in January 2018.

Scope of MiFID

Which Firms are affected by MiFID?

MiFID applies mainly to:

Banks
Co-operative Institutions 
Investment Firms
Regulated Markets
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