Investment Firms Directive

The Investment Firms Directive (IFD) is a regulatory framework established by the European Union aimed at enhancing the safety and transparency of investment firms. It sets out rules on capital requirements, governance, and risk management to ensure these firms operate responsibly and protect clients' interests. The IFD categorizes firms based on their size and risk profiles, applying tailored regulations accordingly. This directive helps create a stable financial environment, promotes competition, and fosters investor confidence, ultimately contributing to the overall integrity of the financial system within the EU.