On March 23, the UK Financial Services Authority (FSA) published policy statement PS07/5 “Perimeter Guidance relating to MiFID”. This policy statement responds to comments on previous draft guidance relating to the scope of the EU Markets in Financial Instruments Directive (MiFID). The Perimeter Guidance sets out what activities and entities are within the scope of FSA regulation.

Issues discussed include the impact of MiFID on credit institutions, the relationship between the existing regime for authorized professional firms and the MiFID provisions, the regulatory status of forward foreign exchange contracts and the relationship between MiFID investment services and the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, the statutory instrument which sets out which activities are currently subject to FSA regulation. The final guidance will take effect from November 1, the implementation date of MiFID.