MIFID: more transparency for investment services

MiFID (Markets in Financial Instruments Directive) is a new European directive regulating the Market in Financial Instruments. Its main objectives are to reduce the barriers to cross-border trading in transferable securities, to facilitate investment and consequently to stimulate the European economy. The MiFID Directive comes into force on 1 November 2007.

The significance of MIFID

The MiFID Directive will introduce a comprehensive and harmonised regulatory framework within the European Union, Iceland, Norway and Liechtenstein.

It covers a wide range of investment services and financial instruments such as equities, bonds, treasury bills, funds and derivative instruments (e.g. options, swaps, futures).

The new provisions apply to all companies providing investment advice or services: banks, stockbrokers and other financial intermediaries.

By increasing the efficiency and transparency of the financial markets, the MiFID Directive will create new opportunities, which Fortis  as a major investment service provider in Europe  wants its clients to take full advantage of.

Maximum protection and more transparency

The MiFID Directive offers a number of advantages to investors as a result of:

a greater assurance that products and services meet their risk profile
best execution of orders
higher standards in terms of order processing
stringent provisions on transparency and the information to be provided
a larger choice of investment products and service providers – who will be required to conform to higher standards in turn – which should lead to higher quality services at more competitive prices
the same high level of protection whether you choose a domestic or foreign service provider

The main subjects covered by MIFID

The Directive requires banks to categorise their clients. In addition, Fortis needs to gather information on its clients' financial situation, their investment knowledge, experience, and objectives.

For more information on MiFID and its main subjects such as client classification, client profiling, suitability & appropriateness, best execution, reporting to clients and information to clients, please read our documents in the right column. You can also watch two related videos:

Fortis welcomes MiFID as an opportunity to consolidate high-value services and innovative and competitive solutions.

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