The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results.

MiFID definition

The Markets in Financial Instruments Directive (MiFID) was first implemented in November 2007 to regulate the provision of investment services by financial institutions within the EU. Its primary focus is to increase competition and consumer protection.

MiFID definition

The Markets in Financial Instruments Directive (MiFID) was first implemented in November 2007 to regulate the provision of investment services by financial institutions within the EU. Its primary focus is to increase competition and consumer protection.

The directive aims to do this by requiring firms to:

  • Gain more information regarding their clients’ appropriateness for trading specific products
  • Handle orders in clients’ best interests
  • Provide greater transparency regarding market conditions both before and after a trade (eg volumes, best bid and ask prices)
  • Make sure best execution is achieved on all client orders

Since the introduction of MiFID a new directive, MiFID II, has been approved to expand the scope of its predecessor. Its intended implementation date is January 2018.

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