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;…
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Source: European Commission