MiFID - planning and implementation Part 1

This is the first of two articles following the publication by the UK Financial Services Authority of its recent document on planning for the implementation of EU MiFID. This article looks at the major issues behind the implementation of the Directive. The second article will review some the specific areas, where technology investment may be required.

Bob McDowall, bta consulting, www.btaconsulting.co.uk

MiFID replaces the Investment Services Directive (ISD) which has been in place since 1993. The goal of MiFID is to ensure that investors and intermediaries can transact freely with clients in the European Economic Areas (which includes the addition of Norway, Switzerland and Liechtenstein) in addition to the EU Member States on the same terms and conditions as business transacted in their home country. Issuers should be able to tap a deeper and more liquid market, in which spreads and transaction costs and the cost of capital would be reduced.