The Markets in Financial Instruments Directive (MiFID) is the framework of European Union (EU) legislation for:
- investment firms that provide investment and ancillary services to clients, such as the provision of discretionary portfolio management services, in respect of one or more financial instruments; and
- the securities and financial markets.
MiFID has been in force since November 2007 and it was revised by MiFID II, which took effect in January 2018, to improve the functioning of financial markets in light of the financial crisis and to strengthen investor protection. MiFID II extended the MiFID requirements in a number of areas including but not limited to:
- stricter governance requirements for investment firms;
- new and extended requirements in relation to pre- and post-trade transparency;
- new rules on inducements, including the requirement for asset managers to “unbundle” research charges from execution; and
- new product governance requirements for manufacturers and distributors of MiFID ‘products’.
KBIGI’s Best Execution Policy and Conflicts of Interest Policy were updated to reflect MiFID II guidelines. Summary information of these policies are available upon request – simply call your Client Services Manager or alternatively our main desk at + 353 1 4384400.