The Markets in Financial Instruments Directive governs how funds (and other financial instruments) can be sold and distributed to investors throughout the EU. It does this by balancing investor protection (governing under what rules and conditions investment advice and portfolio management can be given) with providing the right amount of information about products and services (information about the products’ objectives and costs). In most cases, this type of financial advice, which connects funds with end investors, is provided not by fund managers, but by other financial players, such as banks or financial advisers.

Against this backdrop, EFAMA wants to ensure that these rules are balanced and the information provided to investors is meaningful. While more protection is necessary for retail investors, MiFID should allow other, more professional investors, more freedom in defining what information is necessary to conduct their day-to-day business. Also, MiFID must not make it impossible for ordinary EU citizens to access financial advice to save for their future and retirement.