Michael George A843_ Bailey#96

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What is passporting under MiFID?

Passporting allows financial firms licensed in one EU member state to operate across the European Union without obtaining separate licenses in each country. For example, a broker regulated in Cyprus under CySEC can serve clients in Spain, France, or Germany under MiFID rules. This system fosters integration and competition in the European financial market. However, after Brexit, UK firms lost passporting rights, making it harder for FCA brokers to serve EU clients. Passporting ensures consistent regulatory standards across Europe and gives traders more broker options.