The Securities Transaction Act
What does it mean for you, the client?
The purpose of the Markets in Financial Instruments Directive (MiFID) is to introduce a single market and regulatory regime for investment services across the 30 member states of the European Economic Area (the 27 Member States of the European Union plus Iceland, Norway and Liechtenstein). This will be of great benefit to you, our client, since the MiFID Directive is specifically designed to protect investors, increase transparency and promote competition. The implementation of MIFID will also lead to the provision of more detailed information, enabling you to make better investment choices, benefit from a closer and more scrupulous framing of your financial undertakings and greater protection.
It should also be pointed out that, while MiFID does bring about some important changes to the industry in general, many of its requirements simply underline best practice and the service Arion Bank already provides you with, such as acting in your best interest.
The MiFID Directive is designed to complete the process of creating a single European market for investment services, to respond to changes and innovations which have occurred in securities markets and bring the regulation up to date with these developments and to protect investors by making markets deeper, more competitive and more robust against fraud and abuse. This harmonization will also allow investment companies to deliver their services on a cross border basis in line with the reality of business dynamics and meeting clients’ expectations.
MiFID will extend the scope of existing European financial services legislation and will affect the vast majority of companies operating in the financial sector in the EEA. These include investment banks, portfolio managers, stockbrokers and broker dealers, corporate finance firms, many futures and options firms, and some commodities firms.