MiFID II Level 2 Highlights for Investment Firms
25 April 2016
Regulatory News Alert
On April 7, 2016 the European Commission adopted a first set of delegated rules for the new MIFID II framework, in the form of Delegated Directive (hereinafter “Delegated Directive”). The Delegated Directive is a part of the MiFID II package which is now expected to be binding as of January 3, 2018, following the Commission proposal and will still require the enactment of additional delegated acts.
The Delegated Directive elaborates in details on three important aspects of the MiFID II regime: safeguarding of clients’ assets, product governance and inducements. In our view the Commission generally followed the ESMA’s technical advices as presented in the Final Report of December 19, 2014 (ESMA/2014/1569) (hereinafter “ESMA’s Final Report”).
This Alert provides the highlights on the key aspects of the Delegated Directive.
Upon request, we can assist you in estimating the relevant impact on your entity by organising value-added session with our subject matter experts.
|Safeguarding of clients' assets||
Further to the proposal of the EU Commission (however non official or binding) to postpone the application of the MIFID II Directive by 1 year, it is now expected that the new framework will become effective as of January 3, 2018.
Until then, the Commission should come with additional Delegated rules in order to address the other issues covered by the ESMA’s Final Report, i.e further aspects of the Investors’ protection regime, as well as transparency, data publication, HFTs/DEA, requirements on trading venues, commodity derivatives and portfolio compression.
The chart below summaries the key milestones and critical next steps ahead to be completed in the coming months.
MIFID II / MiFIR
* Final Report ESMA’s Technical Advice to the Commission on MiFID II and MiFIR 19 December 2014 | ESMA /2014/1569 & Consultation Paper MiFID II/MiFIR 19 December 2014 | ESMA/2014/1570
** Final Report MiFID II/MiFIR draft Technical Standards on authorisation, passporting, registration of third country firms and cooperation between competent authorities 29 June 2015 | ESMA/2015/1006
*** Final Report Draft Regulatory and Implementing Technical Standards MiFID II/MiFIR 28 September 2015 | ESMA/2015/1464