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Frequently Asked Questions

Below you will find the answers to some frequently asked questions

  • What is MiFID?

    MiFID is the Markets in Financial Instruments Directive (2004/39/EC) and has been in force across the EU since November 2007.  It is the cornerstone of the EU’s regulation of financial markets and seeks to improve their competitiveness by creating a single market for investment services and activities.  It also aims to ensure a high level of harmonised protection for customers investing in the financial instruments in scope.

  • What is MiFID II?

    MiFID II is the “new and improved” version of MiFID.  It applies from 3rd January 2018 and will further strengthen investor protection policies and improve the functioning of financial markets by making them more efficient, resilient and transparent.  It is considered to be one of the most significant and important regulatory initiatives undertaken in the EU since the financial crisis began in the late 00s.  MiFID II actually has two components: (i) the MiFID II Directive (2014/65/EU) and (ii) the Markets in Financial Instruments Regulation (“MiFIR”), which has direct validity throughout the EU without implementation by Member States (whereas the Directive must be transposed into each Member States’ national law).

  • Who does MiFID II apply to?

    MiFID II applies to all entities which are considered to be MiFID firms (commonly referred to an “investments firms”), which are firms conducting MiFID business in the European Economic Area (EEA).  

  • What is an investment firm under MiFID?

    Investment firms are “any legal person whose regular occupation or business is the provision of one or more investment services to third parties and/or the performance of one or more investment activities on a professional basis”.  Therefore, this covers all natural and legal persons who perform investment services and activities using financial instruments, as a regular occupation or business, and on a professional basis.  

  • What is MiFID business?

    MiFID business refers to investment services and activities and ancillary services conducted by an investment firm.  Examples of investment services are portfolio management, executing orders on behalf of clients and the reception and transmission of orders in relation to one or more financial instruments.  Ancillary services include custodianship, , foreign exchange services connected to the provision of investment services and investment research and analysis relating to transactions in financial instruments.