The Markets in Financial Instruments Directive, or MiFID1, is one of the centrepiece legislative measures in the European Union’s Financial Services Action Plan (FSAP). It is effective in the UK from 1 November 2007 (which is also the deadline for all 30 EEA Member States; the deadline will not be met in most cases).
The implementation of MiFID will have an impact on the securities markets and investment firms of all member states. The measures in the Directive are primarily targeted at regulated firms operating in the financial markets, but MiFID nonetheless will have an impact on corporates who are active in the markets as customers of regulated firms. Treasurers therefore do not need to be experts on MiFID but they do need to be aware of the implications for their companies.
This Briefing Note explains the specific practical changes that will affect corporates, Additionally it goes into the technical details of MiFID as useful background for the Treasurer, in-house lawyer, or company secretary.