There is much within MiFID II, which was finally officially published on 12 June, beyond the scope of a simple briefing paper. Here we seek firstly to give you an update on progress regarding its contents and the timetable for its implementation, and secondly to highlight some issues which are of particular note/ interest.
When MiFID I was introduced from 2007, it was an acknowledgment that markets had moved on since the original Investment Services Directive (or ISD) had been introduced. Now we are moving on to the next stage where there is a recognition that there is a need to promote the integration and competitiveness and efficiency of EU financial markets yet further.
Steven Maijoor, ESMA Chair, indicated that the recently launched MiFID II/MiFIR consultation process is an important step in "the biggest overhaul of financial markets regulation in the EU for a decade. The reform of MiFID is an integral part of the EU strategy to address the effects of the financial crisis and aims to bring greater transparency to markets and to strengthen investor protection. These changes are key to restoring trust in our financial markets. We appreciate the magnitude of this exercise to stakeholders …"
The two main areas concern:
- financial market structure transparency regulation and
- investor protection.
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