The MiFID II legislative proposal consisting of an amended Directive (Directive 2014/65/EU) and a new regulation (EU Regulation No 600/2014 – the Markets in Financial Instruments Regulation (MiFIR)) were approved by the European Parliament in plenary session on 15 April 2014 and adopted by the Council of the EU on 13 May 2014. The final texts of MiFID II and MiFIR were published in the Official Journal on 12 June 2014.
These new rules have come into force since 03 January 2018.
MiFID II introduces significant changes in the following main areas:
- Scope:
- Extends the definition of investment services;
- Extends the definition of financial instruments, and;
- Restricts certain MiFID exemptions.
- Market structure:
- Introduces a new category of trading venue (OTF);
- Amends existing trading venues’ obligations;
- Trading reports to capture additional traders’ information, and;
- Reports pre- and post- data trading to reporting venues.
- Good governance requirements:
- Investment firms’ managing bodies to be held accountable for the overall strategy of the firm;
- Additional criteria for qualified senior management, and;
- New instructions on inducements and remuneration of staff.
- Investor protection:
- Additional requirement for dispensing investment advice, and;
- Detailed information on fees and commissions paid to or by investment firms.
- Increased regulatory oversight:
- Ability to impose limits to financial products, and;
- Ability to ban access to financial products and/or activities.
- Third country access:
- Third country investment firms servicing EU-based eligible counterparties to register with ESMA (no EU-based branch required), and;
- Third country investment firms servicing EU-based retail and/or professional clients required to establish a branch in a EU country.
For more information regarding the changes brought by MiFID II and MiFIR, please refer to our Regulatory Radar publication which can be found here.
MAP S.Platis closely monitors all developments at both a national and supranational level with our team of seasoned specialists always ready to assist clients adapt and prepare for the new and challenging regulatory environment and developments.
Our multidisciplinary team can provide comprehensive and holistic solutions tailored to each client’s individual needs for a smooth MiFID II implementation including:
- Regulatory analysis of impact on your business and its operations;
- Development of an action plan for compliance;
- Update and/or review of existing policies and procedures;
- Draft of new policies and procedures;
- Provision of answers to relevant queries (Q&A Service);
- Determine areas with revenue and other financial impact, and;
- Training and education on new regulatory requirements.
For more information, please feel free to contact us
