What are the basic principles of the MiFID directive?

MiFID (Markets in Financial Instruments Directive)

The financial sector is one of the main pillars of the Andorran economy and is deeply internationally interconnected through  its presence in other markets outside the Principality, as well as the European Union. It is therefore important that the Andorran legal framework meets the international standards in terms of financial regulation.

The former Law 8/2013 had already transposed most of the above-mentioned directives, so that these had already been partially introduced into the Andorran legal system. However, an amendment of Law 8/2013 is necessary to comply with all of these directives and their implementing regulations.

On 15 February 2019, the Law which amends Law 8/2013, of 9 May, on organisational requirements and operating conditions for institutions operating in the financial system, investor protection, market abuse and financial collateral agreements was approved.

In 2024, Law 7/2024 of 27 May on the organisation and operation of financial system operating institutions and market abuse was passed. This transposes Directive 2014/65/EU (generally known as “MiFID II”) on markets in financial instruments.

Specifically, Law 7/2024 plays a significant role as a central part of the regulation of the provision of investment and ancillary services in the Principality of Andorra. It introduces new obligations concerning advice, portfolio management, adequacy and suitability, product governance, information for clients, incentives and remuneration, conflicts of interest, safeguarding of assets, record keeping, best execution and internal control.