sijoituspalveludirektiivi

The Sijoituspalveludirektiivi, or Investment Services Directive in English, is a piece of European Union legislation that aims to harmonize the regulation of investment services across member states. Its primary goal is to create a single market for investment services, ensuring a consistent level of investor protection and promoting fair competition among financial service providers. The directive sets out rules for how investment firms should operate, including requirements for authorization, prudential supervision, conduct of business, and transparency.

Key aspects covered by the Sijoituspalveludirektiivi include the authorization process for investment firms, which typically involves meeting certain capital requirements and having robust organizational structures. It also mandates specific rules for how firms must treat their clients, such as the obligation to act honestly, fairly, and professionally in accordance with the best interests of the client. This includes requirements for information disclosure, suitability and appropriateness assessments, and conflict of interest management.

Furthermore, the directive addresses issues related to market transparency and integrity, aiming to prevent market abuse and insider dealing. It lays down rules for the provision of investment advice, portfolio management, and the execution of client orders. The Sijoituspalveludirektiivi has been updated and replaced over time, with subsequent versions like MiFID (Markets in Financial Instruments Directive) and MiFID II expanding and refining its scope and provisions to adapt to evolving financial markets. The overarching aim remains the creation of a safer and more integrated European financial market.