IFD

IFD creates a comprehensive framework for investment firm authorization, operation, and supervision across the EU. The directive includes capital requirements, organizational standards, and conduct of business rules designed to protect investors and ensure market integrity. IFD enables investment firms authorized in one member state to provide services across the EU through passporting rights. The directive covers various investment services including portfolio management, investment advice, execution of orders, and market making. Recent updates (IFD/IFR) have introduced new prudential requirements tailored specifically to investment firms, moving away from bank-like capital rules. IFD aims to create a single market for investment services while maintaining high standards of investor protection.