Markets in Financial Instruments Directive. MiFID consists of a framework directive (2004/39/EC), an implementing directive (2006/73/EC), and an implementing Regulation (EC/1287/2006). MiFID is a wide-ranging piece of legislation that replaced the Investment Services Directive and was introduced to integrate the EEA’s financial markets, strengthen investor protection and enhance competition in the securities industry across the EEA and applies to investment banks, portfolio managers, brokers, corporate finance firms, and some derivatives- and commodities-related firms and provides a framework for such firms to be authorized and supervised by their local competent authorities. MiFID came into force on November 1, 2007, and introduced a “passporting regime,” whereby a firm authorized in an EEA member state can provide services within the scope of its authorization in other EEA member states without the need for additional authorization in such member states.

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