MiFID - in a pan-European market - A shared vision for the future

The London Stock Exchange has published a paper entitled MiFID in a pan-European market - A shared vision for the future. The paper covers how the Exchange will assist firms in relation to:

  • Pre-trade transparency obligations.
  • Limit order display obligations.
  • Best execution.
  • Post-trade transparency obligations.
  • Transaction reporting obligations.
  • Market data - efficiency through continued centralisation.

Commission Regulation (EC) No 211/2007 amending Regulation (EC) No 809/2004 implementing Directive 2003/71/EC as regards financial information in prospectuses

There has been published in the Official Journal of the European Union Commission Regulation (EC) No 211/2007 of 27 February 2007 which amends Regulation (EC) No 809/2004 implementing Directive 2003/71/EC of the European Parliament and of the Council as regards financial information in prospectuses where the issuer has a complex financial history or has made a significant financial commitment.

Single Market in Financial Services Progress Report 2006

On 1 March 2007 the European Commission published a press notice advising that it had published its annual Progress Report on the Single Market in Financial Services. The Report highlights the Commission's achievements in 2006. The achievements noted in the Report include the adoption of implementing measures for MiFID, the publication of the White Paper on Investment Funds, the adoption of the industry led Code of Conduct on Clearing and Settlement, the completion of the inquiry into competition in the retail financial services sector and the extension of the period for acceptance of third-country Generally Accepted Accounting Principles in the EU until 2009.

At the end of the Report it states that in 2007 the Commission will drive forward various initiatives to encourage European financial integration. These include:

  • A White Paper on Mortgage Credit.
  • A proposed Directive on Solvency II.
  • Careful monitoring of the implementation of MiFID and the Code of Conduct on Clearing and Settlement.

Commission Working Document on storage of regulated financial information (under Transparency Directive)

The European Commission has published a DG Internal Market Services Working Document on storage of regulated financial information in relation to issuers whose securities are admitted to trading on a regulated market. This Working Document is divided into 2 parts. The first part covers minimum quality standards to be respected by the central storage mechanism, in connection with Article 21 Transparency Directive (TD). The second part covers an initial position in relation to the minimum conditions required for the effective functioning of a pan-European network of national central storage mechanisms, in connection with Article 22 TD.

 

EU Commissioner Charlie McCreevy meets US Treasury Deputy Secretary Robert Kimmitt

Charlie McCreevy (EU Commissioner for Internal Market and Services) and Robert Kimmitt (U.S. Treasury Deputy Secretary) have met to review the progress made under the US-EU Financial Market Regulatory Dialogue and to discuss its forward-looking agenda.

 

Addendum to PS07/1, Integrated Regulatory Reporting (IRR): Certain investment firms

In May 2006, the FSA published Consultation Paper 06/11, Integrated Regulatory Reporting (IRR): Credit institutions and certain investment firms. CP06/11 sets out the FSA's initial proposals to revise the reporting requirements for credit institutions and certain investment firms.

CP06/11 was split into three parts:

  • Part I – reporting proposals for credit institutions, and investment firms affected by the Capital Requirements Directive (CRD).
  • Part II – reporting proposals for the non-CRD investment firms and non-financial reporting.
  • Part III – auditors’ reports for certain investment firms and consistency review.

The FSA then provided feedback and final revised rules through:

  • Policy Statement 06/10, Integrated Regulatory Reporting (IRR): Credit institutions and certain investment firms- Feedback on Part I of CP06/11 and made text for 2007 reporting.
  • Handbook Notice 61, made text for 2008 (and beyond) Part I reporting requirements.
  • Policy Statement 07/1, Integrated Regulatory Reporting (IRR): Certain investment firms - Feedback on Part II and III of CP06/11 and made text.

The FSA has now published an Addendum to PS07/1. The Addendum examines the overall impact on the amount of data firms will submit to the FSA as a result of the changes to reporting proposed in Part I and II of CP06/11.

The Addendum is structured as follows:

  • Chapter 2 – Drivers of future reporting requirements.
  • Chapter 3 – Method used.
  • Chapter 4 – Impact of changes to financial reporting arising from Part I of CP06/11.
  • Chapter 5 – Impact of changes to financial reporting arising from Part II of CP06/11.
  • Chapter 6 – Impact of changes to non-financial reporting arising from Part II of CP06/11.
  • Annex 1 – Breakdown of current and future reporting requirements.
  • Annex 2 – Glossary of the Handbook definitions used and acronyms.

CESR publishes responses received to its consultation on Level 3 Guidelines on MiFID transaction reporting and to its call for evidence on non-equities markets transparency

The Committee of European Securities Regulators has published on its website the responses it has received to: (1) The consultation on Level 3 Guidelines on MiFID transaction reporting. (2) The call for evidence on non-equities markets transparency.

More principles-based regulation and Treating Customers Fairly

In his speech at the Australian Securities and Investment Commission Summer School, Clive Briault (Managing Director, Retail Markets, FSA) discusses:

  • The case for moving to a more principles-based approach to regulation.
  • What this means for the senior management of firms.
  • What this means for the FSA.
  • The FSA’s initiative on Treating Customers Fairly.