Investment Firms Directive (IFD)

The Investment Firms Directive (IFD) is a set of European Union rules designed to regulate investment firms—companies that manage investments, provide financial advice, or trade on behalf of clients. It aims to ensure these firms operate safely, transparently, and responsibly, protecting investors and maintaining financial stability. The IFD sets standards for risk management, capital requirements, and conduct, while also facilitating innovation and competition within the industry. Overall, it balances fostering a dynamic financial sector with safeguarding investor interests and systemic stability.