We have updated this note to include a link to Practice note, Consultation responses: MiFID II and MiFID review ( www.practicallaw.com/9-517-2322) .
A guide to Practical Law Financial Services' MiFID materials
This practice note acts as an index to Practical Law Financial Services' resources on the Markets in Financial Instruments Directive (2004/39/EC) (MiFID) and its implementing legislation. It links to materials on the UK's implementation of MiFID, the European Commission's review of MiFID and MiFID II.
Scope of this note
Directive 2004/39/EC on markets in financial instruments (the Markets in Financial Instruments Directive (MiFID)) and its implementing legislation came into force on 1 November 2007. MiFID repealed Directive 93/22/EEC on investment services in the securities field (the Investment Services Directive (ISD)) and introduced wide-ranging changes to the regulation of firms conducting investment business throughout the EEA.
It is generally accepted that many of the original objectives of MiFID have been met. In particular, MiFID resulted in better protection and services for investors and, with the emergence of new trading systems and opportunities for pan-European trading, increased competition and innovation. However, it was widely acknowledged that there was room for improvement. In December 2010, following a review of MiFID, the European Commission published a consultation paper setting out proposals to amend MiFID. The MiFID review addressed those areas where modifications are considered to be necessary, as well as specific weaknesses in financial markets that emerged during the financial crisis. It also took account of technological developments and trading patterns that have significantly changed the structure of equity secondary markets since MiFID was first implemented. The Commission subsequently published its legislative proposals to amend MiFID and its implementing legislation in October 2011 (known as MiFID II).
After much negotiation, the Commission's legislative proposals evolved into the final MiFID II legislation, which takes the form of
A Directive on markets in financial instruments repealing Directive 2004/39/EC (2014/65/EU) (the MiFID II Directive).
A Regulation on markets in financial instruments and amending Regulation [EMIR] on OTC derivatives, central counterparties and trade repositories (Regulation 600/2014) (MiFIR).
The above legislation is accompanied by a large amount of level 2 regulation from the Commission and the European Securities and Markets Authority (ESMA).
This practice note lists and provides links to Practical Law Financial Services' resources on MiFID, the UK's implementation of MiFID, the Commission's review of MiFID and MiFID II.
Practice note: overview
Practice note, MiFID: overview ( www.practicallaw.com/6-509-0196) . This note, by Hugh Merritt of Hogan Lovells, summarises the principal requirements of MiFID, and discusses UK implementation of MiFID through regulatory rules and guidance.
Practice note, Hot topics: MiFID II ( www.practicallaw.com/6-503-3276) . This note tracks the proposals for amending MiFID, including a high level overview of the MiFID II proposals, links to related key primary source material, and a What's next? table to help subscribers track developments.
Practice notes on MiFID
Practice note, What is MiFID business? ( www.practicallaw.com/3-380-4071) . This note explains the circumstances when a firm will carry on MiFID business.
Practice note, MiFID II: legislative proposals ( www.practicallaw.com/0-509-5291) . This note outlines the European Commission's legislative proposals to amend MiFID which were published on 20 October 2011 (MiFID II).
Practice note, MiFID review consultation: markets and trading platforms ( www.practicallaw.com/3-508-1565) . This note provides a detailed summary of the Commission's consultation proposals (published in December 2010) that will impact on market structure and the way those markets, and those operating within them, function. It covers, for example, the proposals to enhance requirements relating to the disclosure of trade transparency data, transaction reporting, the trading of derivatives on organised venues, oversight of derivatives trading, and commodity derivative markets.
Practice note, MiFID review consultation: investor protection and provision of investment services ( www.practicallaw.com/9-504-2651) . This note provides a detailed summary of the Commission's consultation proposals (published in December 2010) on the scope of MiFID (including exemptions), conduct of business issues, the provision of investment services (including authorisation and organisational requirements), the sanctions regime, member state options and discretions, and third-country firm equivalence.
Practice note, MiFID review: CESR's technical advice to the European Commission ( www.practicallaw.com/5-504-2629) . This note outlines the technical advice and information provided by the Committee of European Securities Regulators (CESR) to the Commission during 2010, which helped to inform the Commission's review of MiFID.
Practice note, Passporting under MiFID ( www.practicallaw.com/7-214-7011) . This note sets out the procedures to be followed by firms wishing to establish branches or offer services cross-border through the EEA under MiFID.
Practice note, Services and activities that can be passported under MiFID ( www.practicallaw.com/0-205-5670) . This note sets out the services and activities that can be passported throughout the EEA under MiFID.
Flowcharts and checklists
Checklist: MiFID Level 1/Level 2 provisions mapping table ( www.practicallaw.com/9-205-5675) (This checklist has a law-stated date of 1 November 2007)
Practice notes and checklists on UK implementation of MiFID
The following notes explain how specific aspects of MiFID have been implemented in the UK:
Practice note, Regulated activities: dealing in investments as principal and dealing in investments as agent: Impact of MiFID on the regulated activities of dealing as principal or agent ( www.practicallaw.com/0-201-9842)
Practice notes on MiFID II
The following resources documents identify and track the progress of key UK and EU developments (including consultations, policy and guidance) relating to specific aspects of MiFID. The EU material is presented in both documents by subject matter.