Andorra Transposes MiFID II into Domestic Law

Andorra has taken a significant step to strengthen its financial regulatory framework by passing a bill transposing the EU’s landmark directive, MiFID II. The new law aims to improve investor protection and enhance market integrity in the country.

Key Provisions of the Bill

• Incorporates key provisions of MiFID II into Andorran domestic law
  • Sets out organizational requirements for financial entities
  • Establishes operating conditions and minimum standards for these entities
• Enhances powers of Andorran financial authorities to supervise and regulate financial activities
• Introduces stricter prudential requirements for banking and investment firms
• Updates existing legislation related to:
  • Insurance
  • Anti-money laundering/terrorist financing provisions
  • Electronic contracting
  • Consumer protection

Impact

The new law will have a positive impact on Andorra’s financial sector, including:

• Strengthened regulatory framework
• Enhanced investor protection and market integrity
• Improved alignment with international standards and best practices
• Greater confidence in Andorra as a stable and trustworthy financial hub

The bill was approved by the Andorran General Council on November 15, 2023, and is expected to come into effect on [insert date]. This marks an important milestone in Andorra’s efforts to strengthen its financial regulatory environment.