Abstract

The article discusses the MiFID II/MiFIR regulatory framework consisting of a revised directive (MiFID II) and a new regulation (MiFIR). The EU package aims at increasing investor protection by creating a more efficient, risk-aware and transparent investment services market.

The full regulatory impact for investment firms is significant, as MiFID II has broad implications for their operating and business conduct models.

In particular, MiFID II strengthens investor protection standards (e.g. regulating the issues of independent and dependent advice, inducements and product governance) and introduces a new EU – wide product governance regime which applies to both sides of the product development and sales process, namely to: (1) product manufacturers; and (2) product distributors (if different).