What is MiFID
MiFID (Markets in Financial Instruments Directive) is a European law that regulates financial firms in the European Union. The purpose of MiFID is to ensure complete regulation for investment services across the 30 member states of the EU.
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MiFID explained
The MiFID is a directive that plays a key role in the European Commission’s Financial Services Action plan. Its aim is to ensure efficient and transparent market activity, improve investor protection and enhance the means available to the component authorities.
The MiFID was developed in 2004 and applies to all investment firms based within the EU. The purpose of the MiFID is to deliver harmonization across European jurisdictions and offer investors high levels of protection. In addition to the above, the MiFID aims to provide a coherent and risk sensitive framework for the regulation of financial activity.
When setting up a forex company within the EU, not only will your company be authorized and regulated by the regulatory body in place within your chosen jurisdiction, but it will also be required to comply with MiFID law. For example if setting up a forex company withinCyprus, you will be regulated by CySEC and must also comply with MiFID law.
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