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Mifid II delay confirmed in European Parliament 

April 13, 2016

Jessica Tasman-Jones, Money Marketing

The European Parliament has formalised the delay of Mifid II this week, after hearing the infrastructure required for the legislation would not be in place by the current deadline. The move pushes the implementation date back from January 2017 to January 2018.

In February the European Commission confirmed it planned to delay the deadline by 12 months due to the “exceptional” challenges firms and regulators face in preparing for the new rules.

The Mifid II rules include a requirement to disclose all charges relating to a product to investors upfront, a different independence definition to the UK definition and tougher inducement rules.

The complexity of the legislation meant the Parliament had already set an adoption period of 30 months, instead of the usual 18-24 months. But even with this additional time, Parliament has stated the “challenges are of such magnitude that essential data infrastructures will not be in place in time for 3 January 2017”.

IT infrastructure will need to connect data feeds between the European Securities and Markets Authority, local regulators, and more than 300 trading platforms across the European Union. A memo from Parliament said most IT systems connected to the legislation would need to be “built from the ground, based on new parameters”. Read more

 
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