On 1 November 2007, the Markets in Financial Instruments Directive, the so-called MiFID (see note 1 over), along with its European implementing provisions (see note 2 over) and national implementing measures, entered into force in the 30 EEA States, replacing the Investment Services Directive (ISD). The ISD, adopted in 1993, was the first piece of legislation which sought to develop a European regulatory framework for investment services.

MiFID goes further in advancing the integration and development of EU financial markets by setting up a more comprehensive and homogeneous regulatory framework. It aims to cope with, and further enable, the increased level of cross-border investment transactions. It is one of the most important and challenging reform projects in the financial sector set to overhaul regulation of EU financial markets with a view to enhancing the competitiveness of EU investment services industry in today‟s increasingly globalised markets and boosting the EU‟s economy. For further information please refer to the EPFSF Briefing Paper.