FCA almost finalises proposals for MiFID II

Chris Hamblin

3 April 2017

Its proposals for changes in the ways in which practitioners can trade in financial instruments touch on issues such as trading venues, 'transparency' in trading and algorithmic and high-frequency trading. It has just published the latest version, along with more about its intention to oblige retail financial advisors to tape their telephone calls.

The FCA is asking firms to be affected by its forthcoming changes to the activities and instruments covered by MiFID II to apply for authorisation or for 'variations of permission' to perform their new tasks. Without doing so, they will be unable to operate in the UK after 3 January 2018, when MiFID II takes effect.

The "near final rules," as the FCA calls them, cover:

the new category of firms - data reporting service providers;
position limits and reporting for commodity derivatives; and
requirements for firms that perform MiFID investment services to change their systems and controls.

In June, the FCA plans to finalise the MiFID II rules. This will cover some remaining topics such as "conduct of business," perimeter guidance and client asset protection.

WealthBriefing is holding a MiFID II conference in London on 24 May. For more details, and to find out how to register, click here.