The Directive on Markets in Financial Instruments (MiFID) was adopted by the European Parliament and Council and came into effect on November 1, 2007. It regulates the markets of financial instruments
for provision of investment services and activities within the European Economic Area (EEA). The EEA includes the 27 EU member states as well as Iceland, Liechtenstein and Norway.
The main objective of the MiFID is to harmonise the governing of financial markets within the EEA, and therefore to increase efficiency, enhance financial transparency, increase competition,
and offer greater consumer protection in investment services. Under MiFID, an investment firm may freely provide its services within the territory of another member state or a third country,
provided that such services are covered by the investment firm’s authorisation.