This is a guide for retail investors on the new European Directive for financial markets: the Markets in Financial Instruments Directive (MiFID). Based on that published by the Committee of European Securities Regulators (CESR), the guide aims to explain, in clear and straightforward language, the new safeguards retail consumers will benefit from when buying a range of financial services following the introduction of this legislation across Europe.
The MiFID Directive, which came into effect on 1 November 2007, is a key legislative instrument which establishes how investment firms and the services they provide are regulated. One of its core principles is that firms wishing to provide services to retail investors, must act professionally, provide fair information on financial products, and take into account the individual circumstances of each consumer. The Directive aims to harmonise investor protection throughout Europe and increase consumers’ confidence that the products they are being sold are actually appropriate for their needs.
The key message of this guide is that the degree of protection that an investor will now receive as a customer in Europe, is directly related to the reliance he places on the firm and on himself. For example, an investor with low financial knowledge or experience who relies on the investment firm for advice or to take decisions on his behalf is afforded the highest degree of protection.
| Download the English version | Download the Maltese version |
Send an e-mail with your contact details (Name, address and phone number) to Consumerinfo@mfsa.com if you would like to receive a copy of the guide by post .
