Investment Firm Directive (IFD)

The Investment Firm Directive (IFD) is a set of European Union rules designed to regulate investment firms—companies that give financial advice, manage investments, or buy and sell securities. It aims to ensure these firms operate safely, transparently, and responsibly, protecting investors and maintaining financial stability. The IFD sets standards for things like risk management, organizational structure, transparency, and conflict of interest management. By creating a consistent framework across EU member states, the IFD helps foster trust and confidence in the investment industry while promoting fair and ethical practices.