The House of Lords EU Select Committee has published a report on its inquiry into the European Commission's proposal for MiFID II. In particular, the report notes a number of areas where the legislative proposals are not sufficiently clear or certain. These include proposals in relation to third country access, the one-size-fits-all approach to pre-trade transparency and the implications of the new category of organised trading facility.
The Select Committee feels that the MiFID II proposals in relation to third country access could have the effect of locking third countries out of the EU markets, simultaneously damaging competition and the European financial markets. It has also identified a number of flaws within the proposals for investor protection and corporate governance.
The MiFID II proposal was felt by many to be rushed, causing a great deal of confusion in relation to the intended consequences of its proposals. The Select Committee has urged the government to liaise further with the European Parliament in relation to those areas of greatest concern.