FCA Urges Firms to Prepare for MiFID II Without Delay

The Markets in Financial Instruments Directive (MiFID II), the biggest regulatory change in the UK financial sector since the 2008 financial crisis, has left many companies struggling to be compliant. The new regulations concern firms that provide services linked to shares, bonds, derivatives and other financial products and are due to take effect on Wednesday, 3rd January 2018.

The changes include modifications to MiFID and a new Markets in Financial Instruments Regulation (MiFIR). Financial firms in the UK were required to submit applications to the regulator by 3 July 2017 in order to have the necessary permissions before the launch date.

In a statement, the FCA noted: “We expect any firms who have not submitted a complete application by 3 July 2017 to do so without further delay. We will determine complete applications received after 3 July 2017 within 6 months, but we cannot guarantee to do so by 3 January 2018.”

The regulator also advised firms to prepare contingency plans if they don’t receive authorization before said date. Non-compliance with the regulations will bring heavy penalties. The regulations are aimed at safeguarding the operations of financial markets and also ensuring that firms operate in accordance with regulatory requirements.

Under the new and revised legislation, firms or individuals carrying out unauthorized business activities will be in violation of the Financial Services and Markets Act.

Source link

Add a Comment

The Biggest Opportunity From MiFID II
EU moves to recognise equivalence of US, Swiss stock exchanges before MIFID 2
MiFID II demands & how research is priced – John Dwyer from Celent/Oliver Wyman
Citadel Securities’ Paul Hamill on MiFID, Regulations