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Germany Says Proposed MiFID Market-Rules Delay Comes Up Short 

March 16, 2016

Birgit Jennen and Julia-Ambra Verlaine, Bloomberg Business

The German Finance Ministry said proposed delays for MiFID II, the complex legislation affecting nearly every financial firm operating in the 28-nation bloc, don’t go far enough in giving nations and banks time to adjust.

Germany wants the EU to consider a more nuanced delay than the setback proposed by the European Commission, which if enacted would set the new law into force at the start of 2018. The finance ministry instead is calling for a set of deadlines tied to whenever the final rules take shape, according to a paper sent last week to negotiators from EU nations.

“To delay the date of application will, however, not be enough to allow all relevant parties an appropriate implementation,” says the non-public paper, which was obtained by Bloomberg News. It cites “significant delays” and technical challenges that call for a longer phase-in process.

The commission’s proposal was seen as too little too late by politicians when it came out in February. A group of 17 finance ministries, led by Germany and the U.K., voiced concerns immediately about the time needed to convert the EU rules into national law. The European Securities and Markets Authority triggered the delay last year, saying there wasn’t sufficient time for banks and other financial institutions to build the necessary data-reporting systems before the original 2017 deadline. Read more

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