licenses & documents
Markets in Financial Instruments Directive
Markets in Financial Instruments Directive ("MiFID") replaces the Investment Services Directive of 1993 and comes into effect throughout the European Economic Area ("EEA") on November 1, 2007.
MiFID covers three basic areas:
(I) Conduct of business which includes rules governing best execution policies, client categorisation requirements and procedures and defines suitability/appropriateness characteristics, transaction reporting requirements and client order’s handling.
(II) Organisation which includes rules regarding licensing, European passport, compliance and risk management, outsourcing of vital functions, conflicts of interest issues and inducements, and governance in general .
(III) Equity Market Transparency which includes rules regarding pre- and post - trade transparency, and new function of systemic internalisation.