Markets in Financial Instruments Directive (MiFID)

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The Markets in Financial Instruments Directive (MiFID) will come into effect from 1 November 2007 and will widely affect the investment industry. It replaces and updates the Investment Services Directive (ISD), originally launched in 1995.

MiFID is the main element of the European Union’s Financial Services Action Plan (FSAP), which aims to harmonise and promote trading across Europe’s financial markets.

The London Stock Exchange states, “All market participants – from buy and sell side firms, vendors, exchanges and technology companies – will be impacted by the Markets in Financial Instruments Directive (MiFID).”

If you are trading as an investment bank, portfolio manager, stockbroker, broker dealer, corporate finance firm, futures, options or commodities firm, it is likely that you will have to comply, according to the Financial Services Authority. It may also affect a part of your organisation’s services, for example, a bank selling an investment product.

Organisations need to update themselves with the increasing number of detailed requirements that will come into play with MiFID. These will affect their controls and systems and promote transparency.

MiFID will set out basic guidelines for the governance of your firm, incorporating new developments that have occurred since ISD. Along with MiFID, organisations will also have to comply with the January 2007 Capital Requirements Directive (CRD), setting standards in capital regulations.

Working with us

At Mazars, we are experts in compliance, working UK and International frameworks – from The Combined Code to Sarbanes-Oxley.

With MiFID’s wider remit and CRD, Mazars can provide the guidance and resources needed during its implementation – for businesses already familiar with ISD and those complying for the first time.

We can help you put the right systems and controls in place for both directives, sparing your in-house resources. We look at existing processes and how to adapt them to the new MiFID directive in a cost-effective manner.

As a result, you can benefit from: