MiFID II agenda and projects

News

Staying aware of the MiFID II agenda…and keeping on track with MiFID II projects

Regulatory News Alert

20 October 2016

On 30 June, the Council of the EU published text in its Official Journal that officially delays the entry into force of MiFID II/MiFIR by one year to January 2018. In parallel to that delay, the deadline for transposition into national laws was also pushed back one year to 3 July 2017.

Most Regulatory Technical Standards (RTS) have been adopted by the Commission...

  • In the course of last months, many RTS were published—including, among others, the much awaited RTS 22 regarding reporting of transactions to competent authorities and RTS 1 & 2 with regards to transparency requirements
  • Most RTS publications in the Official Journal of the Commission is now on hold until the Corrigendum is finalized, which should be a mere formality
  • However, the first publication is still awaited for some technical standards as the Commission has contested ESMA’s drafts. These include the functioning of MTFs and OTFs (ITS 19), criteria on ancillary services (RTS 20), and position limits to commodity derivatives (RTS 22). We expect these to be published in the coming weeks.

…in parallel, ESMA issues guidelines and a consultation paper on key topics…

Most recently, ESMA has released two interesting documents:

  • On 5 October, ESMA issued a consultation on product governance guidelines to safeguard investors, providing more insights on the highly discussed concept of target market.
  • On 10 October, ESMA published its final report on guidelines on transaction reporting, order record keeping, and clock synchronization following the consultation paper issued in December 2015. This final report brings more clarity on specific aspects, in particular using more practical examples and illustrations.

…and national authorities start to collect market participants’ opinions on specific subjects

Among others, we can highlight two public consultations:

  • On 12 September, the French Autorité de Marchés Financiers (AMF) issued a consultation paper on investment research new financing arrangements, which aims at answering the main questions raised by the delegated directive published by the Commission in April.
  • On 29 September, the British Financial Conduct Authority (FCA) published its third MiFID II consultation paper, restating that MiFID II, which aims to strengthen consumer protection, was in line with their own statutory objectives. Through FCA’s opinion, this paper brings interesting insights, notably on topics like inducements and investment research financing arrangements, product governance, and suitability and appropriateness.

How can Deloitte help?

Deloitte actively monitors MiFID II developments and subsequent publications on an ongoing basis. We carefully analyze all relevant published documents in order to identify any regulatory changes. We also participate in “group of experts” meetings in order to capture the latest market opinions on hot topics. This allows us to provide the most updated and most relevant views to our clients.

We offer to organize an informal workshop in your office, to answer your questions and discuss the latest regulatory updates as well as potential operational impacts and remediation scenarios leading to full implementation support.

Please do not hesitate to contact us, as we would be more than happy to meet you for a general awareness session or a workshop, as well as to support you in your implementation.

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