MiFID II and savings

Author:Adrian Simion
Position:Bucharest University of Economic Studies
MiFID II and savings
PhD. student Adrian SIMION
The markets in financial instruments directive (MiFID) is a reg ulation that
appeared in 2 008 across European Union, a s an effect of the crisis, that increases the
transparency across the financial markets and standardizes the regulatory disc losures for
particular markets. In 2014 MiFID II appeared on Directive 65/EU and will be app lied on
the markets starting January 2018 all over European Union. It offers increased
transparency especially for derivatives an d other over-the counter markets. This paper
aims to analyze the n ew directive and savings/investments in the new context as a part of
MiFID II strategy for individuals. Higher regulations and higher understanding of the risk
could lead to a higher exposure to the saving part in a portfolio.
Keywords: saving, globalization, investments, directive.
JEL Classification: K22, K33.
1. Introduction
Saving behaviors vary by country. Demographic and financial factors
affect the saving behavior of each individual, and saving rates are generally
different in each country.
As a result of the way in which investment products were promoted to
customers in the pre-crisis period, the EU Markets in Financial Instruments
Directive (MiFID) emerged in the EU to provide a direction for the financial
markets with regard to risks and how to diversify the portfolio. The magnitude of
the fall in capital markets, and in particular Lehman Brothers's bond market failure,
has led to significant falls in customers' portfolio, since they are not properly and
consistently informed about the associated risk and the maximum decline in
portfolio products at the time of sale. Amounts of individual placements were
formed either from income-saving (Savings = Income-Consumption) or from other
sources such as inheritance, other previously saved amounts. They have suffered,
in this case have been adjusted in line with declines in financial assets.
According to Barro and Sala-i-Martin
(2004), focusing on the predictions
of neoclassical and endogenous theory to assess the relationship between saving
and real economic growth, the long-term growth rates of the Solow-Swan model
are entirely determined by exogenous factors. The main long-term substantive
Adrian Simion - Bucharest University of Economic Studies, adriansimiont@yahoo.com.
Barro, R.J., Sala-i-Martin, X. (2004 ). Economic Growth, second edition, The MITT Press,
Massachusetts Institute of Technology, London, England, pp. 34-50.

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