The evolution of MiFID and its impact on investment services firms

Abstract

The principal aim and objective driving this research study is to gain a better understanding of how MiFID II will impact investment services firm in scope for the Directive and ultimate end investors when it comes into forces in 2018. It will also provide insight on how the Directive has evolved since it was first introduced in 2007. Further, this study was particularly undertaken to address the gap there is in the literature review which fails to uncover how the implementation of MiFID II will affect the local financial market. This study is therefore important as it will help local investment services firm in scope of MiFID II understand how the new provisions introduced by this Directive will impact their operating model and how they interact with other market players such as service providers or even investors. In terms of similar studies, there was one in particular which was undertaken by Kyle Galea in 2012 - “The Financial Impact of MiFID in the Maltese Financial Services” however apart from being solely focused on the financial impact of MiFID, it only looked at how the Directive will impact the Maltese Financial Services market. It was therefore important for this research study to be undertaken to tackle the non-financial impacts on investment services firms.