BBA’s response to the Commission’s consultation on the MiFID Review focuses on:

  • the successes of MiFID, and the need for any amendments to be consistent with its original aims of an effective single market, and properly implemented and enforced rules on investor protection and market conduct;
  • how the proposals in some respects go further than the (then) CESR’s advice, and the reasons for this are not always explained. Because so many suggestions are new, the consultation period was too short;
  • the importance of distinguishing between problems with the Directive and problems with its implementation;
  • concern over the breadth of the new definitions of “admission to trading” and “organised trading facility”;
  • whether the transparency proposals will disrupt existing practices in pre-trade transparency in certain markets and how post-trade transparency should focus on liquid instruments;
  • the need not to change the customer classification boundaries to “over-protect” responsible market participants;
  • concern at the proposals to extend suitability and civil liability standards to dealings with professional clients; and
  • the need for tighter controls over the proposal for regulatory power to ban products or activities.

 (Source: European Commission’s Consultation on the Review of MiFID: A response by: The British Bankers’ Association)