MiFID (the Markets in Financial Instruments Directive) is legislation for the regulation of investment services within the European Economic Area. MiFID replaces the Investment Services Directive (ISD), reflecting changes that have taken place in financial services and markets since the earlier Directive was issued.
MiFID was designed to:
- Create harmonization across jurisdictions
- Protect investors
- Increase efficiency
- Enhance financial transparency.
MiFID is part of the European Commission's Financial Services Action Plan.