The European Commission’s final draft proposals for the revised Markets in Financial Instruments Directive (MiFID II) along with a related regulation (MiFIR) were published 20 October 2011. The objective of the original MiFID, which was passed in 2004 and came into force in 2007, was to improve investor protection and promote cross-border market access across the EU. As proposed, MiFID II is designed to further that objective and to address issues which have been exposed by market developments since the onset of the financial crisis from 2008 to date.

Various previous drafts have been leaked and there is not much in the final draft that was not anticipated.

It is to be expected that there will be amendments to MiFID II prior to its final adoption (see below under the heading “European Legislative Process”). Once it is adopted, which likely will be in mid- to late-2012, member states will then be required to implement MiFID II’s provisions into their own national laws. The period allowed for this generally is two years after the adoption of a Directive.