MiFID Directive
MiFID became law in the UK on 1 November 2007. It was designed to encourage competition between Europe’s trading venues for financial instruments. It also aimed to ensure appropriate levels of protection for investors and consumers of investment services across the European Union (EU).
More recently, the European Commission (Commission) reviewed the MiFID framework and concluded that change was needed. The revised legislation, MiFID II, became effective in the UK from 3 January 2018 and has the four following objectives:
- strengthen investor protection
- reduce the risks of a disorderly market
- reduce systemic risks, and
- increase the efficiency of financial markets and reduce unnecessary costs for participants
