MiFID II (Markets in Financial Instruments Directive II) is a legislative framework introduced by the European Union that came into force on 3 January 2018, replacing the original Markets in Financial Instruments Directive (MiFID I) from November 2007.
The regulation has been introduced to respond to developments in the trading environment as well as the lessons learnt from the 2008 financial crisis. It introduced greater protection for investors, extended the scope of financial instruments impacted by the regulation, and generally enhanced the existing regulatory regime.
MiFID II applies to EU and UK financial services firms undertaking MiFID business in the European Economic Area (‘EEA’) and the UK, as well as those providing services cross-border.
As part of improving levels of investor protection afforded to clients, MiFID II requires investment firms to provide disclosure of costs and charges to enable clients to make more informed investment decisions.
The following frequently asked questions outline the key impacts of MiFID II Costs and Charges regime and what you can expect.