EU Commission proposes delay to MiFID II and MiFIR implementation has been saved
EU Commission proposes delay to MiFID II and MiFIR implementation
Banking alert | 14 February 2016 | EU Commission proposes delay to MiFID II and MiFIR implementation
Proposed delay will make the implementation timetable achievable but gives no time to pause.
On the 10th of February the European Commission published legislative proposals to delay both the MiFID II and MiFIR implementation dates by a year to 3 January 2018. The delay will apply to the package in full, rather than in part, and is deemed necessary due to the “magnitude” of the data challenges. A more realistic timeline will mean greater certainty for planning budgets and securing resources for MiFID II programmes, as well as enable firms to actually meet the implementation deadline and consider more strategic solutions.
The Commission, however, has not proposed to extend the date by which Member States must transpose the Directive (currently set at 3 July 2016), something several Member States have called for given the delays in finalising the level two implementing measures. Member States may seek to secure an extension to the transposition date during negotiations.
The MiFIR proposal also amends the EU Market Abuse Regulation (MAR) and the EU Central Securities Depositories Regulation (CSDR). MAR and the CSDR settlement discipline rules will still apply to firms from July 2016 and Q2 2018 respectively, but the concepts and rules as set out in MiFID I should be used until the new application date of MiFID II.
The proposals will now pass to the EU Parliament and the Council for negotiation and adoption.
In the meantime, firms should consider and manage the overlap of the MiFID II implementation programme with other regulatory implementation programmes. MiFID II overlaps with MAR, CSDR, the EU Securities and Financing Transactions Regulation (SFTR), the EU Packaged Retail and Insurance-based Investment Products Regulation (PRIIPs), and the Insurance Distribution Directive (IDD). Likewise firms should not slacken the pace on MiFID II implementation – the proposed delay will make the implementation timetable achievable, rather than easy.
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