Source: Katarina Krempova¸ PKF Malta¸ 10 January 2012

This proposal is a revision of ‘MiFID I’ which came into force in November 2007 as a core pillar in EU financial market integration.

 MiFID I establishes:

• a regulatory framework for the provision of investment services in financial instruments  by banks and investment firms;
• a regulatory framework for the operation of regulated markets by market operators;
• the powers and duties of national competent authorities in relation to these activities.

 

MiFID II proposal continues an integral part of the reforms and is primarily aimed at:

• establishing a safer ¸ sounder¸ more transparent and more responsible financial system working for the economy and society as a whole in the aftermath of the financial crisis;
• ensuring a more integrated¸ efficient and competitive EU financial market.

 

The initiative focuses on the following operational objectives¸ such as:

• ensuring that all organised trading is conducted on regulated trading venues¸ as well as to apply transparency requirements to all of these venues;
• ensuring a consistent regulatory approach based on MiFID provisions for the distribution to retail investors of different financial products;
• ensuring the appropriate coverage of MiFID provisions to firms providing investment services to clients and caring out investment activities on a professional basis;
• upgrading and refinement of the market structure framework¸ in particular in non-equity markets;
• improving corporate governance by strengthening provisions with regard to the profile¸ role¸  responsibilities of both executive and non-executive directors and balance in the composition of management bodies;…

 

To read whole proposal click here

Source: European Commission