The MIF 2 directive: What major changes for your savings?
IN BRIEF |
|
With the MiFID 2 directive, the savings and investment landscape in Europe has evolved considerably. This regulation aims to strengthen investor protection, improve the transparency of financial products and guarantee better governance of financial instruments. This article explores the main changes brought by MiFID 2 and their implications for savers.
Better investor protection
The MiFID 2 directive introduced several important measures aimed at strengthen investor protection. Among them, the obligation for financial service providers to provide clear, complete and understandable information on the products offered. This includes details of the costs, risks and expected performance of the investments.
In addition, each investor now benefits from a unique identifier number, allowing better traceability of operations. This measure increases transparency and ensures that investors’ interests are better protected.
Increased transparency of financial products
Another crucial aspect of the MiFID 2 directive concerns the improvement of transparency of financial products. Service providers must now detail more precisely the characteristics of the products they offer. They must also clearly indicate what type of clientele these products are intended for, based on their financial situation and investment objectives.
This increased transparency allows savers to make more informed decisions about their investments, by better understanding the benefits and risks associated with each financial product.
Stricter governance of financial instruments
MiFID 2 also imposes more rigorous governance of financial instruments. Issuers of financial products must now put in place internal procedures to ensure that their products are adequately designed, marketed and monitored.
This governance ensures that all products meet the guidelines and are tailored to the needs of target customers. Issuers must also regularly evaluate the effectiveness of products and make changes if necessary.
Impacts on financial advisors
Financial advisors are directly affected by the MiFID 2 directive. They must adapt their practices to comply with the new requirements, particularly in terms of information collection and of presentation of financial products. They are also required to justify the relevance of each advice provided, taking into account the requirements of each client.
This development aims to further professionalize the financial advice sector and increase trust between investors and their advisors.
In conclusion, the MiFID 2 directive has brought significant changes in the area of savings and investment. By strengthening investor protection, increasing the transparency of financial products and establishing strict governance of financial instruments, this regulation aims to create a more secure and transparent environment for savers. It is essential for them to understand these changes in order to optimize their savings strategies and make informed choices.
| Changes | Impact on your savings |
| Increased transparency | Access to clearer information on financial products |
| Better product governance | The products are better suited to your investor profile |
| Customer Classification | Savers classified according to their financial profile |
| Investor protection | Strengthened regulations to avoid abuse and bad practices |
| Obligation to advise | Advisors must provide more personalized and justified advice |
| Customer follow-up | More rigorous monitoring of operations to ensure their traceability |
| Method of remuneration of advisors | More transparency on commissions and fees |
| Cost report | Detailed fee information for better comparability |
- Increased transparency: Clearer information on financial products and associated costs.
- Unique identification: Assignment of a unique identifier number for each investor.
- Customer classification: Adaptation of financial products according to the client’s profile and objectives.
- Product governance: Rigorous monitoring and adequacy of products offered to customers.
- Increased protection: Strengthened measures to protect investors and improve the security of financial markets.
- Return of commission: Strict supervision of commissions paid for better transparency.
- Investment advice: Obligation for advisors to provide more appropriate and transparent advice.
- Regulatory compliance: Strengthening controls and regulatory oversight by competent authorities.
