Mifid II - EU mulls changes to investor protection rules
Photo © Lee Torrens - Fotolia
(BRUSSELS) - The EU Commission opened a consultation Monday on changes in investor protection in the Markets in Financial Instruments directive (Mifid), which sets out rules for European securities markets.
These rules, which have been in force since 3 January 2018, are seen as a cornerstone of the reforms the EU put in place following the financial crisis. They aim to improve investor protection and ensure transparent, efficient and competitive trading in financial instruments.
While the Commission sees the rules as having worked well overall, it believes some adjustments may be required.
In particular, today's consultation asks about potential changes to investor protection rules, in order to strike the right balance between promoting investor participation in capital markets, the competitiveness of the EU's financial sector and safeguarding the interests of investors.
It also consults on potential actions to foster research coverage for SMEs.
The consultation addresses the possible introduction of a new transparency tool that allows investment managers, investment advisers and their clients to have access to "live" asset prices across the EU in a consolidated format (the consolidated tape).
The introduction of the consolidated tape might require changes to MiFID and MiFIR.
"We need well-functioning financial market rules to ensure that EU capital markets work, both for companies raising financing, and for Europeans looking to invest their money," says EC vice-president Valdis Dombrovskis: "This is an essential component of boosting our Capital Markets Union. Today's consultation aims to ensure that MiFID contributes to the CMU and our wider policy priorities."
Today's consultation is available online and runs until 20 April 2020. It will feed into the Commission's legislative work in the months to come.
Review of the regulatory framework for investment firms and market operators