What is MiFiD?
MiFiD came into effect on 1 November 2007 replacing the existing Investment Services Directive (ISD). MiFID extends the range of activities and instruments that firms can passport. In particular, MiFID: • upgrades advice that involves a personal recommendation to a core investment service that can be passported on a stand alone basis; • clarifies that operating an MTF can be passported • extends the scope of passporting to cover commodity derivatives, credit derivatives and financial contacts for differences for the first time.
The challenge MiFID – the Markets in Financial Instruments Directive will significantly alter financial services regulation in Luxembourg and Europe. It is considered to be one of the biggest challenges for the financial sector in the near future. MiFID replaces and extends the coverage of the Investment Services Directive (ISD) but it also makes significant changes to the regulatory framework. It introduces new and more extensive requirements in particular concerning conduct of business and internal organisation.
The Markets in Financial Instruments Directive (MiFID) is new European legislation that comes into effect on November 1, 2007 replacing and updating the existing Investment Services and Banking Co-ordination Directives. MiFID’s aim is to enhance the single European financial marketplace, increase market transparency and improve investor protection. Rabobank recently published an informative MiFID brochure, which is now directly available as a download.
