Two of the main aims of the directive are to improve investor protection across national borders and to establish one market for financial services in Europe.
The requirements governing customer information are stricter after the implementation of the directive in the EU and customers are now classified according to their degree of professional knowledge. Customers investing in financial instruments and those receiving investment advice are afforded greater protection. The greatest protection is afforded to those customers who are classified as retail, i.e. non-professionals. The three customer classifications are: retail clients, professional clients and eligible counterparties.
