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MiFID II should have been phased in, says FCA chief 

February 10, 2016

Compliancy Services

The financial industry is currently waiting for a decision from the European Commission (EC) as to whether implementation of the Markets in Financial Instruments Directive II (Mifid II) will be delayed until January 2018.

Interim chief executive of the Financial Conduct Authority (FCA) Tracey McDermott has spoken out about the regulators' concerns around the practical implications of the existing timetable. 

While it appears likely that the delay will be approved, Ms McDermott is warning firms that this time must be used to prepare for the changes. Speaking at Bloomberg’s offices in London, she said: "The purpose will be to allow time for those changes to be made, not to provide an excuse to reduce the intensity of preparation for implementation."

There are significant crossover themes from current legislation and the new rules which are being introduced under MiFID II. However, firms are being urged to ensure that they aren't underestimating the extent of the changes which will be involved.

In fact, Ms McDermott has stated that perhaps the new rules should have been phased in. 

"MiFID II does seem to offer the means to strike such a balance through its provisions to calibrate transparency obligations. Nonetheless, I think it would have been helpful if the framework legislation had allowed for the phasing in of the transparency regime," she stated. Read more

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