What is the primary aim of MIFID?

The primary aim of MIFID (Markets in Financial Instruments Directive) is indeed to create a common market with harmonised rules across the European Union. This directive was established to foster a cohesive regulatory framework that enhances both the efficiency and transparency of financial markets. By ensuring that financial instruments are traded under uniform regulations, MIFID facilitates easier cross-border transactions, which ultimately encourages greater competition among financial service providers.

MIFID's focus on harmonisation means that it aims to reduce the fragmentation that can arise when different countries have varying regulations. This promotes a level playing field for financial firms operating in multiple jurisdictions, benefiting both consumers and providers by ensuring a higher level of investor protection, alongside increased market integrity and competitiveness.