What does MIFID I aim to achieve in the European Economic Area?

The aim of MIFID I, which stands for the Markets in Financial Instruments Directive, is primarily to harmonize regulations for investment services across member states within the European Economic Area (EEA). This directive seeks to create a single market for investment services by standardizing the rules and regulations that govern these services.

By establishing consistent regulatory frameworks, MIFID I enhances investor protection, increases transparency, and promotes competition among financial institutions. This harmonization allows for easier cross-border investment and creates a level playing field for firms operating in different countries, which ultimately fosters greater investor confidence in the market.

While there are aspects of investor protection included in MIFID I, its broader and more fundamental objective is to unify the regulatory landscape—not just for retail investors, but for all participants in the investment services sector. The options regarding confidentiality in transactions and eliminating taxation on capital gains do not directly relate to the primary objectives of MIFID I, making them less relevant in this context.