The European Parliament and Council adopted the Directive 2014/65/EU, dated 15 May 2014, on Markets in Financial Instruments (MiFID II), which came into effect on 03/01/2018 and aims to regulate the markets of financial instruments for provision of investment services and activities within the European Economic Area (EEA). The Directive has also been adopted in Cyprus through the Cyprus Investment Services and Activities and Regulated Markets Law of 2017 (Law 87(I)/2017).

The European Union’s Markets in Financial Instruments Directive (MiFID II) provides a harmonized regulatory regime for investment services within the European Economic Area. The main objectives of the Directive are to increase efficiency, enhance financial transparency, increase competition, and offer greater consumer protection in investment services. One of the unique principles of MiFID II is that an investment firm may freely provide its investment and ancillary services within the territory of another member state and/or a third country, provided that such services are covered by the investment firm’s authorization.