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6th April 2017

MiFID II Fifth Consultation

Last week, at the same time as the Financial Conduct Authority published its First Rules on the Implementation of MiFID II, the regulator also published a fifth consultation on the revised Markets in Financial Instruments Directive.

Whilst the fourth MiFID II consultation published in December 2016 was anticipated to be the final one, the FCA’s new consultation (CP17/8) covers rules for Occupational Pension Scheme firms and the extension of the FCA powers within the enforcement guide and decision procedures and penalties manual.

In summary this fifth MiFID II consultation covers:

changes to the FCA’s decision procedure and penalties manual and enforcement guide;
proposals for new conduct rules dealing with the non-MiFID business of occupational pension scheme firms; and
consequential and miscellaneous changes to the FCA Handbook and new guidance on the use of third parties where firms are required to send the FCA financial instrument reference data or commodity derivative position reports

This new consultation will affect a wide range of firms that the FCA oversees, particularly:

occupational pension scheme firms;
banks;
investment firms;
recognised investment exchanges;
multilateral trading facilities; and
prospective data reporting service providers

Next Steps:

Firms should review the consultation and send any comments in relation to chapters 3 and 4 to the FCA by the deadline of 12th May 2017. However, comments on chapter 2 can be submitted up to 23rd June 2017.

Once the FCA has considered any feedback it receives on this consultation, they will set out their final rules in relation to chapter 3 and 4 issues in the second Policy Statement expected to be issued in June, whilst the final rules relating to chapter 2 will be published separately.

MiFID II Compliance Support

If you are 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.