MiFID Objectives

he objective of creating an integrated financial market, in which investors are effectively protected and the efficiency and integrity of the overall market are safeguarded…

MiFID: What is it?

  • MiFID stands for “Markets in Financial Instruments Directive” and builds on the regulatory principles and structures established by the existing Investment Services Directive (“ISD”) which MiFID will replace.
  • MiFID is a major part of the European Union’s Financial Services Action Plan (FSAP) which is designed to create a single market in financial services across the EU.
  • MiFID, like the ISD, will from the basis of the regulatory framework that governs the way in which UBS conducts the bulk of its business operations in Europe.
  • MiFID covers both retail and wholesale markets.
  • MiFID applies to the distribution of mutual funds as well as other investment products (e.g. structured products). UCITS managers, however, to the extent they solely manage UCITS and do not provide other financial services, are not subject to MiFID, since they are already regulated by the UCITS Directive.
  • MiFID became effective on 1st November 2007 following the completion of a 4 level implementation process carried out by the EU Commission and national regulators (who will be responsible for local enforcement of MiFID rules).