The Markets in Financial Instruments Directive (MiFID), due to be effective across the EU/EEA from 1 November 2007, will have significant implications for all asset managers including hedge fund managers located in the EU/EEA. As part of the European Commission’s Financial Services Action Plan, it seeks to allow investors to invest and obtain investment services on a pan-European basis more easily, to foster competition between trading venues in Europe including venues which are not stock exchanges, to improve the effectiveness of the EU passport for investment firms and to ensure standardised levels of protection for investors across Europe.
MiFID is not intended to affect the organisation or distribution rules for hedge funds themselves, which will continue to be regulated individually by member states.
