MiFID II - Delay to 2018 and Beyond?
- Mr Maijoor warned that a one year delay may not be long enough if the EC takes too long to sign off the ESMA Regulatory Technical Standards.
It is looking increasingly likely that the planned overhaul of the European regulatory framework under MiFID II MiFID II MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s fina MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s fina Read this Term and MiFIR is to be delayed for a year or even longer.
Rumblings started in early November last year with a speech by Stephen Maijoor, the head of the European super-regulator ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term, in which he indicated that timings for stakeholders and regulators to build and implement IT systems were very tight and even unfeasible in certain cases.
Mr Maijoor said to Reuters that he expected the decision to delay would be settled in a few weeks, although he warned that a one year delay may not be long enough if the EC takes too long to sign off the ESMA Regulatory Technical Standards which are currently in draft.
It is still not clear whether any delay would be for all or just part of MiFID, as this would be a political decision according to Mr Maijoor. It is our view that Mr Maijoor’s comments may also have an element of political maneuvering to try to get EC to come out and make a decision on the issue as both regulators and trade bodies are looking for clarity.
An FCA roundtable last week highlighted the confusion in the industry caused by the uncertainty, and warned that smaller firms might be falling back in their preparations. The FCA noted the importance of keeping the momentum going, despite the potential delay and said it was considering how it could best communicate that to market participants.
It is looking increasingly likely that the planned overhaul of the European regulatory framework under MiFID II MiFID II MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s fina MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s fina Read this Term and MiFIR is to be delayed for a year or even longer.
Rumblings started in early November last year with a speech by Stephen Maijoor, the head of the European super-regulator ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term, in which he indicated that timings for stakeholders and regulators to build and implement IT systems were very tight and even unfeasible in certain cases.
Mr Maijoor said to Reuters that he expected the decision to delay would be settled in a few weeks, although he warned that a one year delay may not be long enough if the EC takes too long to sign off the ESMA Regulatory Technical Standards which are currently in draft.
It is still not clear whether any delay would be for all or just part of MiFID, as this would be a political decision according to Mr Maijoor. It is our view that Mr Maijoor’s comments may also have an element of political maneuvering to try to get EC to come out and make a decision on the issue as both regulators and trade bodies are looking for clarity.
An FCA roundtable last week highlighted the confusion in the industry caused by the uncertainty, and warned that smaller firms might be falling back in their preparations. The FCA noted the importance of keeping the momentum going, despite the potential delay and said it was considering how it could best communicate that to market participants.