MiFID II — What is MiFID II and what is its purpose?
MiFID II is the revision of Markets in Financial Instruments Directive. This directive is a key part of a package of European Union laws aimed at creating a single, more transparent market in financial services across all EU member states. In particular, MiFID II aims to strengthen investor protection and improve the functioning of financial markets making them more efficient, resilient and transparent.
MiFID II improvements
MiFID II and MiFIR will ensure fairer, safer and more efficient markets and facilitate greater transparency for all participants. New reporting requirements and tests will increase the amount of information available, and reduce the use of dark pools and OTC trading. The rules governing high-frequency-trading will impose a strict set of organisational requirements on investment firms and trading venues, and the provisions regulating the non-discriminatory access to central counterparties (CCPs), trading venues and benchmarks are designed to increase competition.
The protection of investors is strengthened through the introduction of new requirements on product governance and independent investment advice, the extension of existing rules to structured deposits, and the improvement of requirements in several areas, including on the responsibility of management bodies, inducements, information and reporting to clients, cross-selling, remuneration of staff, and best execution.
Click here to view the: L. 87(I)/2017 regarding the provision of investment services, the exercise of investment activities and the operation of regulated markets
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