In 2015, the Markets in Financial Instrument Directive and Regulation (MiFID II / MiFIR) project will enter the negotiation phase relating to technical application measures, and are scheduled to come into force on 3 January 2017. The new legislation will affect, to varying extents, participants in all parts of the asset management value chain and all financial instruments.
With this revision of MiFID I, the European authorities are adjusting legislation according to new practices and new developments in the markets. They want to enhance pre- and post-trade transparency by widening the scope of financial instruments covered – limited to equities under MiFID I – to include derivatives, bonds, structured products and CO2 quotas. They also want to increase investor protection, partly through rules relating to the management of conflicts of interest, e.g. the concept of independent advice and rules regarding inducements.
A directive and a regulation
- MiFID II governs the activities of investment companies, defines rules for protecting investors and sets out minimum requirements regarding penalties. It must be transposed into the national legislation of EU member-states.
- MiFIR deals with the organisation of markets, access to the European market for companies from other countries, and the powers of regulators. It will be directly applicable in all member-states.
> MiFID - Directive of 15 May 2014 concerning markets in financial instruments, amending directive 2002/92/EC and directive 2011/61/EU
> MiFIR - Regulation 596/2014 of 16 April 2014