The first part of the long-awaited MiFID II Delegated Acts was at last published on 7 April 2016. The MiFID II Delegated Directive (DD) brings most welcome clarity on some contentious investor protection issues, and confirms some key changes that firms need to accomplish in several important areas.

The Delegated Directive does not represent a carbon copy of ESMA´s December 2014 Technical Advice. But in the vast majority of cases, the changes made by the European Commission are not likely to be of material consequence to most firms - though some will be important.

In the attached briefing, we highlight the key differences between ESMA´s Technical Advice and the European Commission’s conclusions, and comment on the likely consequences of changes for firms.

3 January 2018 may sound like it is still a long way off, but given the nature and scale of changes most firms still need to make, it will come round very quickly. The delay to the MiFID II go-live date has given firms a welcome opportunity to take stock of their MiFID II implementation efforts. The EC’s publication of the DD means that there is now new work to do to, and it is time to move forward. It’s therefore important that you quickly establish the impact of the latest developments on your organisation, and move to make the necessary changes to your implementation programmes and strategic thinking. For example, some firms will need to analyse the changes to the requirements on research payment accounts, and consider whether they can now maintain their CSAs, albeit with some modifications. Others will need to consider whether in light of the DD they are now more likely to be able to engage in increased TTCA with non-retail clients.

We have a vast amount of experience supporting firms across the sector with MiFID II gap analysis, impact assessment, programme management and strategic implementation. We have deep expertise in all areas of MiFID II, from investor protection and governance, through to transparency and market structure. We can also help you understand the strategic opportunities MiFID II brings, and help you establish the cumulative impact of the broader regulatory change agenda, across the EU and beyond. If you would like to discuss any of the issues described above in more detail, please contact me.

Find the directive amending MiFID here.

MiFID II can be obtained at the following website:

http://eur-lex.europa.eu/legal-content/DE/TXT/?uri=CELEX:32014L0065]