MiFID II (Directive 2014/65/EU) is a legislative framework instituted by the European Union to regulate financial markets in the bloc and improve protections for investors with the aim of restoring confidence in the industry after the financial crisis exposed weaknesses in the system. It is a revised version of the Markets In Financial Instruments Directive (2004/39/EC), or MiFID, and was rolled out on January 3, 2018, more than six years after the European Commission adopted a legislative proposal for the revision.
It aims to strengthen investor protection and improve the functioning of financial markets, making them more efficient, resilient and transparent.
The local transposed MiFID II Law is cited as the Investment Services and Activities and Regulated Markets Laws of 2017 (Law 87(I)/2007) and is effective as of January 3, 2018.
MIFID II Key Areas:
· Market insfrastructure
· Market transparency (pre- and post-trade)
· Best execution
· Investor Protection
· Client categorization
· Client reporting, Conflict of Interest and code of conduct
· Transaction reporting
· Cost transparency
· Product Governance and target market
· Complex financial Instruments
· Authorisation, regulation and passporting