On March 17, the Financial Conduct Authority (FCA) held a roundtable (Roundtable) with trade associations to discuss the application and implementation of the revised and recast Markets in Financial Instruments Directive and the associated Markets in Financial Instruments Regulation (jointly referred to as MiFID II). The following four topics were discussed at the Roundtable:

1. Application Date and Transposition Deadlines

The FCA reported that negotiations on the proposals and legislation to delay MiFID II were ongoing; however, they were aiming to conclude in April 2016 in order to allow the legislation to go into effect ahead of the July 3 transposition deadline.

2. MiFID II Transposition

A question was raised as to whether systematic internalizers could trade on a matched principal basis, and the FCA responded that MiFID II delegated acts and/or Level 3 questions and answers (Q&A) published by the European Securities and Markets Authority (ESMA) may provide further clarity. The FCA noted that it is considering publishing a second consultation in July 2016 on the implementation of MiFID II (in relation to the SYSC, EG, DEPP, COMM and CASS areas of the FCA Handbook), and a further consultation in September 2016 in relation to COBS part of the FCA Handbook. The FCA confirmed that it aims to complete transposing MiFID II by April 2017.

3. Authorizations

The FCA confirmed that for existing regulated activities and investment types, it is aiming to open the authorizations gateway by the end of 2016. According the FCA’s current plans, firms will submit applications for new regulated activities and investment types at the beginning of 2017. The FCA strongly encourages firms to submit applications as early as possible, ahead of January 2018.

4. FCA Guide to MiFID II Applications and Notifications

The FCA confirmed that it is planning to publish a MiFID II applications and notifications guide, once Level 2 measures are finalized in Brussels. The guide will include chapters on firm types, including trading venues, broker-dealers, commodity market participants, investment advisers, Alternative Investment Fund Managers Directive / Undertakings for Collective Investments in Transferable Securities, incoming EEA investment firms and third-country firms, as well as guidance on authorization, passporting for UK firms, corporate governance, exemptions and waivers.

The FCA’s MiFID II Roundtable minutes are available here.