Originally expected for January 2017, MiFID (Markets in financial instruments Directive) will enter into force in January 2018 and will have to be transposed into MSs’ national law by the 3 of July 2017.
MiFID II will reinforce the current EU legislation on securities markets. For instance, the new directive will ensure that organized trading takes place on regulated platforms, will introduce rules on algorithmic and high frequency trading and will improve the transparency and oversight of financial markets. With these new rules, MiFID II aims at strengthening the protection of investors by improving the conduct of business and the conditions of competition in the trading and clearing of financial instruments.
Even though the date of entry into force has been postponed to January 2018, financial services firms seem to lag behind in their work to comply with the new requirements. According to Bovill, a financial services regulatory consultancy, financial services firms would need 1,363 working days to comply with the new directive…which will enter into force in 277 days, or 191 working days.
The Financial Conduct Authority on its side has called financial services firms to prepare for the entry into force of these news rules on time. In fact, the FCA warned that if they don’t comply on time, they risk being unable to do business in the UK. The authority advises firms to apply now for their new authorizations or variations of current permissions, otherwise they might not be able to operate in the UK after the entry into force of MiFID in January 2018. Questioned by Financial News, the FCA said “falling into scope or not, firms now need to ready their systems and processes for the impact on the European Capital Markets (…)”.