On 18 October 2018, the draft version of the Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018, as laid before Parliament, was published, accompanied by a draft explanatory memorandum. The draft SI relates to the onshoring of the MiFID II Directive and MiFIR to ensure they operate effectively following the UK’s departure from the EU. Regulations 1, 2, 3, 15(5) and 20 will come into force on the day after the day the draft Regulations are made, and the remaining provisions will come into force on exit day.

The FCA and the Prudential Regulation Authority (PRA) will provide further information in due course on how they intend to use the powers conferred to them under the draft Regulations. See our Investment Management Update of 10 October 2018 for discussion of an earlier draft of the SI.