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FCA Consultation: MiFID II Implementation Proposals

11th August 2016

The Financial Conduct Authority have now entered their second consultation relating to the implementation of the revised Markets in Financial Instruments Directive (MiFID II).

The Consultation Paper (CP16/19), published on 29th July 2016, seeks for industry views upon the FCA’s proposed changes to the FCA Handbook in light of MiFID II due to be implemented across Europe on 3rd January 2018.

This Consultation Paper follows on from the FCA’s previous MiFID II consultation last December upon the Secondary Trading of Financial Instruments, as well as the key objectives and background to MiFID II.

MiFID II Consultation Topics

The FCA’s consultation (CP16/19) covers a a range of issues including:

Position limits for commodity derivatives;
Reporting for commodity derivatives;
Systems and controls requirements for firms providing MiFID investment services;
Fees; and
Client protections.

It is expected that despite the two MiFID II consultations that have now been issued by the regulator, there will still a range of issues that the FCA will need to cover to make the necessary changes to the FCA Handbook to implement MiFID II.

The FCA is therefore expected to now publish a third Consultation Paper on MiFID II implementation that is anticipated to include changes to the regulator’s Conduct of Business sourcebook (COBS), material on product governance and some further changes to the Perimeter Guidance Manual (PERG)

CP16/19: Consultation Closing Date

The consultation will run until the 28th October 2016, by which time comments should have been submitted to the regulator so that they may then start considering their feedback and be ready to publish their rules in a Policy Statement during the first half of next year.

To read the full consultation click here: CP16/19 FCA Consultation Paper

MiFID II Compliance Support

If your firm is currently reviewing how MiFID II will impact your business and require support or assistance in planning for MiFID II implementation, please contact our experienced regulatory & compliance support team, who would be happy to help.