MiFID II: A critical analysis

The 2014 Markets in Financial Instruments Directive (MiFID II) along with the Regulation (MiFIR) advances ‘integration’ and ‘harmonisation’ of the European financial market.[1] MiFID II furthers the goals of its predecessor.[2] With the 2004 MiFID, the European Union focused on creating an integrated financial market for increased competitiveness, or, in other words, a level playing field in investment services across European member states. MIFID II further advances this goal. MiFID II’s revolutionary regime carves a significant milestone on the road to the European single supervisory mechanism. The Single Supervisory Mechanism (SSM) refers to constructing a single European supervisory structure for financial regulation. This involves weeding out irregularities in financial supervision and emphasising harmonisation in the regulation of all member state investment firms.