Alternative Investment Management Association Representing the global hedge fund industry
The first Markets in Financial Instruments Directive (MIFID) came into force on 1 November 2007, replacing and expanding upon the Investment Services Directive. MiFID’s objective was to increase the integration and efficiency of EU financial markets by establishing a harmonised regulatory framework for the provision of investment services in financial instruments across the EU and for the operation of regulated markets by market operators.
Following the global financial crisis, the European Commission decided to review the MiFID framework and on 20 October 2011 published proposals for (i) a revised Directive (MiFIDII) and (ii) a new Regulation (MiFIR).
The European Parliament voted on its amendments to the Commission’s proposals on 26 October 2012 and the Council reached a General Approach in June 2013. Trialogues between all three EU legislative institutions then commenced, with a political agreement for the Level 1 MiFIDII/MiFIR texts being reached on 14 January 2014.
The Level 1 text, among other things:
Preparatory Level 2 work on implementing MiFIDII/MiFIR has been commenced by ESMA. We anticipate the publication of formal discussion and consultation papers during Q2 2014.
Given the level of work left to be completed, a long lead-in time is set by MiFIDII/MiFIR, with rules due to go live 30 months after the legislation is formally published in the Official Journal of the European Union. Rules are, therefore, likely to come into effect in late 2016 or early 2017.
Text of MiFID 1 (April 2004)
MiFID I Implementing Regulation (September 2006)
MiFID I Implementing Directive (September 2006)
Politically Agreed Text of MiFIDII (February 2014)
Politically Agreed Text of MiFIR (February 2014)
AIMA position paper on MiFIDII/R (January 2012)