MiFID

Markets in Financial Instruments Directive

The Markets in Financial Instruments Directive ('MiFID') was implemented in November 2007. MiFID is the successor to the Investment Services Directive, and forms the basis by which European investment firms can passport their services to other EU countries. It aims to harmonise the financial services industry across Europe.

MiFID has substantially affected the way in which securities markets operate, including regulating a wider range of financial instruments and change areas, such as the quotation of prices, transparency, execution, reporting principles and generally apply a higher level of protection to investors.

As an example of this, advisors need to assess the financial situation of their clients, requiring at the very least details of income and current assets, such as property and financial commitments including debts.

For more detailed information on MiFID, please visit the FSA's website by clicking here.