CESR Publishes Questions And Answers On MiFID Based On Common Positions Agreed By CESR Members

MiFID is a major part of the European Union’s Financial Services Action Plan (FSAP), which is designed to help integrate Europe's financial markets and to establish a common regulatory framework for Europe’s securities markets.

MiFID came into effect on 1 November 2007. Its predecessor is the Investment Services Directive (ISD). MiFID allows exchanges, multilateral trading facilities (MTFs) and investment firms to operate throughout the EU on the basis of authorisation in their home Member State (the "single passport"). MiFID extends the coverage of the ISD and introduces new and more extensive requirements that firms will have to adapt to, in particular for their conduct of business and internal organisation. In general, MiFID covers most, if not all, firms that were subject to the ISD, plus some that were not. This includes investment banks, portfolio managers, stockbrokers and broker dealers, corporate finance firms, many futures and options firms and some commodities firms. One of the main purposes of MiFID is to harmonise investor protection throughout Europe.

If you have any questions for CESR on the practical application of any of the MiFID requirements, please send them to the following email address (mifid@cesr.eu). To view the Q&A published today click here.