The MiFID II directive, designed to regulate the operation of financial markets from January 3, 2018, is a “child of the crisis”, Professor Charalambos Gotsis, chairman of Hellenic Capital Market Commission said on Monday.
Addressing a seminar organised by the Commission on “MiFID II – MiFIR: Necessary adjustments to a new environment” Gotsis said:
“Undoubtedly, MiFID II is a child of the crisis. A phenomenon, that as history teaches us, is repeated from time to time. After a crisis, a period of intense regulatory activity follows, then a period of deregulation and then a new crisis erupts”.
He noted that a collapse of the financial system led to a collapse in customer confidence, with the financial sector suddenly becoming the focus of criticism. “Only when the financial system is stable and citizens trust it, [do we have] economic growth and social prosperity thrives. Absence of stability means crisis, the cost of which is passed to taxpayers and the weaker classes. That’s why, preserving stability in the financial system must be a constant goal of economic policy,” he said.
The European Commission drafted the MiFID II directive and the MiFIR regulation with the aim to help financial markets become more efficient, resilient and transparent and, above all, to enhance investors’ protection, Gotsis said. These laws will affect all companies with investment activities, platforms, investment managers, investment consultants and data reference service companies, he added.