EP's Economics and Monetary Affairs Committee (ECON) has voted unanimously to adopt the Markus Ferber report on amendments to the MiFID 2 package. Critical to the ECON position are amendments that:

  • require firms designing products to ensure they are suitable for a defined class of investor and take reasonable steps to ensure they are sold to that type of investor;
  • ensure advisers are properly qualified;
  • ensure firms do not remunerate or assess their staff in a way that would give rise to conflicts between their interests and the interests of clients;
  • reserve Organised Trading Facilities (OTFs) to non-equities, to bring them under MiFID Rules;
  • ensure that all orders are valid for at least 500 milliseconds and that firms have good systems and controls in place to deal with market stresses;
  • impose thresholds on trading in commodities and commodity derivatives, such as the maximum net positions persons can hold or enter into over specified periods of time.

Markus Ferber said he hoped the amendments would go before the full EP in October and called on the Council and the Commission to engage in discussions with the EP with a view to reaching agreement on the proposals quickly. (Source: ECON Approves MiFID 2 Report)