What are the basic principles of the MiFID directive?

MiFID (Markets in Financial Instruments Directive)

The three basic principles of the MiFID Directive are to provide clients of financial institutions with greater protection in terms of investments, more transparent information and greater efficiency in asset management.

This directive took effect on 21 April 21, 2004 (Community Directive 2004/39/CEE of the European Parliament and Council), introducing policies governing the execution of orders, the management of conflicts of interest, risk management and asset protection. MiFID emphasizes the importance of “Know Your Customer” (KYC).

Laws in Andorra that contain the principles of the MiFID Regulations:

• Law 7/2013 of 9 May on the rules governing entities operating in the Andorran financial system and other provisions regulating financial activities in the Principality of Andorra.
• Law 8/2013 of May 9 on the organisational requirements and operating conditions of the entities operating in the financial system, investor protection, market abuse and financial guarantee agreements.