EU Markets in Financial Instruments Directive (MiFD)
An EU regulation that increases transparency across the European Union’s financial markets and standardizes the regulatory disclosures required for firms operating in the European Union.
MiFID introduced pre- and post-trade transparency requirements and set out the standards of conduct to be followed by financial firms. It has a defined scope that primarily focuses on stocks.
The directive came into force across the EU in 2007 but was replaced by MiFID II in 2018.
In August 2021, the EU published amendments to the MIFID II regulations, introducing provisions for investment firms to integrate sustainability factors and risks into their operations – including client suitability assessments.