EU Regulatory Frameworks
Understanding the regulatory frameworks that govern financial services in the European Economic Area is essential for victims of financial fraud. These guides explain each framework in accessible terms and highlight its relevance to fraud recovery efforts.
Markets in Financial Instruments Directive (MiFID II)
The Markets in Financial Instruments Directive II (MiFID II), together with its associated regulation MiFIR, forms the cornerstone of EU financial market regulation. Adopted in 2014 and applicable from January 2018, MiFID II establishes the regulatory framework for investment firms, trading venues, and the provision of investment services across the European Economic Area. For victims of financial fraud, MiFID II is the most relevant regulatory framework because it defines which entities are authorised to provide investment services and the standards they must meet.
Read guidePayment Services Directive (PSD2)
The Payment Services Directive 2 (PSD2) is the EU directive governing payment services and payment service providers. Applicable since January 2018, PSD2 establishes the rights and obligations of payment service users and payment service providers, including rules on authorisation of payment transactions, liability for unauthorised payments, and access to payment systems. For victims of financial fraud who made payments via bank transfer or card, PSD2 defines many of the rights and procedures that are central to fund recovery efforts.
Read guideAnti-Money Laundering Directives (4AMLD to 6AMLD)
The EU Anti-Money Laundering Directives form a comprehensive framework designed to prevent the financial system from being used for money laundering and terrorist financing. The framework has evolved through successive directives (4AMLD, 5AMLD, and 6AMLD), each strengthening the obligations on financial institutions and other regulated entities. For victims of financial fraud, the AMLD framework is significant because it imposes duties on banks and financial institutions that, when properly discharged, can help detect and prevent fraud, and when not discharged, may support complaints against those institutions.
Read guideMarkets in Crypto-Assets Regulation (MiCA)
The Markets in Crypto-Assets Regulation (MiCA) is the EU's comprehensive regulatory framework for crypto-assets and crypto-asset service providers (CASPs). Published in the Official Journal of the EU in June 2023, MiCA's provisions are being phased in, with full application from December 2024. MiCA represents a landmark development in digital asset regulation, creating for the first time a harmonised EU-wide framework that covers the issuance, trading, and custody of crypto-assets.
Read guideDeposit Guarantee Scheme Directive (DGSD)
The Deposit Guarantee Scheme Directive (DGSD) mandates that each EU Member State establish at least one deposit guarantee scheme (DGS) to protect depositors in the event that an authorised credit institution (bank) fails. The directive provides a harmonised level of protection across the EU, ensuring that eligible deposits are protected up to EUR 100,000 per depositor per institution. Understanding the DGSD is particularly important for victims of fixed-term deposit scams, where fraudsters impersonate legitimate banks to collect deposits that are not actually placed with any authorised institution.
Read guidePackaged Retail Investment and Insurance-Based Products (PRIIPs)
The PRIIPs Regulation (Regulation (EU) No 1286/2014) requires that manufacturers of packaged retail investment and insurance-based products provide retail investors with a Key Information Document (KID) before the investor makes a purchase decision. The regulation aims to improve the transparency and comparability of these products, enabling investors to make informed decisions. For victims of investment fraud, the PRIIPs framework is relevant because many fraudulent schemes involve the sale of packaged investment products without the required disclosures.
Read guideGDPR and Financial Fraud: Your Data Rights
The General Data Protection Regulation (GDPR) is the EU's comprehensive data protection framework, applicable since May 2018. While GDPR is primarily known as a privacy regulation, it has significant relevance to financial fraud cases. Fraudulent entities collect and process personal data (often extensively), and the GDPR rights available to data subjects can be used strategically to support fraud recovery efforts. This guide explains how GDPR intersects with financial fraud and how victims can use their data rights.
Read guideEuropean Supervisory Authorities: Filing Cross-Border Complaints
The European Supervisory Authorities (ESAs) are three EU-level bodies established to ensure consistent and effective financial supervision across the European Union. They are: the European Securities and Markets Authority (ESMA), the European Banking Authority (EBA), and the European Insurance and Occupational Pensions Authority (EIOPA). For victims of cross-border financial fraud, understanding the role of the ESAs and how to engage with them can be an important part of a comprehensive complaint strategy.
Read guide