What is a MiFID passport?

July 17, 2020 Off By idswater

What is a MiFID passport?

MiFID. Passporting enables firms that are authorised in any EU or EEA state to trade freely in any other with minimal additional authorisation. These passports are the foundation of the EU single market for financial services.

Who is MiFID II applicable to?

MiFID II not only covers virtually all aspects of financial investment and trading but also covers virtually all financial professionals within the EU. Bankers, traders, fund managers, exchange officials, and brokers—and their firms—all have to abide by its regulations.

Can a branch passport?

Passporting can be effected through either the establishment of a branch in another Member State (subject to notifying the home member state) or by the provision of services in another Member State (i.e. services are provided in another Member State but no physical presence is established in that State), also subject …

Does MiFID II apply to Asia?

It comes as no surprise that the legislation’s impact extends beyond the EU (including the EEA) to other regions, such as Asia-pacific. Although the MiFID II restrictions will not be directly applicable to APAC firms, they will have an indirect effect on their business.

Does the UK still have passporting rights?

UK joins the EEA – full EEA-wide market access As an EEA member state, financial institutions established in the UK and in other EEA member states would continue to enjoy full passporting rights and to be able to establish a branch and/or conduct business on a cross-border basis in all EEA member states.

What is EU passporting?

Passporting allows a firm registered in the European Economic Area (EEA) to do business in any other EEA state without the need for further authorization from that country. Passporting is particularly relevant to financial and banking firms located in the Eurozone with cross-border operations.

What is the purpose of MiFID II?

The objective of MiFID II is to make European financial markets more transparent and to strengthen the investor protection. MiFID II revises certain rules and regulations for investment firms and trading venues.

Which countries does MiFID II apply to?

The list of members who have fully transposed MiFID II includes the UK, Cyprus, Germany and Italy, while those who have not communicated transposition status include Malta, the Netherlands and Bulgaria.

Does MiFID apply to asset managers?

While US asset managers are not directly in scope of the MiFID II authorization and operating conditions for firms, MiFID II introduces significant structural changes to EU financial markets that will have an impact on all asset managers, including those domiciled in the United States and registered with the US …

What is EU passporting rights?

Is there an EU passport?

An EU passport is a passport issued by one of the 27 member states of the European Union and allows you to travel visa-free between all EU countries, and to a large number of third-countries the EU has bilateral agreements with.