Markets in Financial Instruments Directive ("MiFID"): Commission sends formal drafts for "level 2" implementing measures to Parliament and ESC

The European Commission has presented its formal drafts to the European Parliament and the European Securities Committee (ESC) for a series of technical measures implementing the Markets in Financial Instruments Directive (MiFID). The MiFID is one of the corner stones of the Financial Services Action Plan which seeks to create a single market for financial services in Europe and is also a response to structural changes in the European securities markets. The objective of the MiFID is to enable investors to invest and procure investment services across EU borders more easily, to remove obstacles to the use of the EU passport by investment firms, to foster competition and a level playing field between Europe's trading venues, and to ensure appropriate levels of protection for investors and consumers of investment services across Europe. The MiFID will play an essential part in building the more integrated, deeper and efficient capital market which Europe needs to lower the cost of capital, generate growth and boost its international competitiveness. The proposed measures now being submitted to the European Parliament and the ESC are the so-called "level 2" measures(or implementation measures) required under the "Lamfalussy" process; they will make operational the principles set out in the "level 1" Directive (IP/04/546). The draft measures are being tabled after a very extensive round of intense consultations with all stakeholders over the last two years. They are designed to protect investors and consumers without imposing unnecessary compliance burdens on firms. The measures have been drafted to provide firms with clear and predictable rules and to give greater security to investors and consumers who buy services from foreign firms.