The deadline for Member States to transpose MiFID into their domestic legislation was 31 January 2007. The implementation date for MiFID (the date when firms need to comply with MiFID’s requirements) is 1 November 2007.
When the FSA published PS07/2 it also published Policy Statement 07/3 that gave feedback on how the Approved Persons Regime would be changed in order to implement MiFID’s requirements.
With the publication of both Policy Statements the FSA announced that its MiFID consultation programme was complete and that the necessary changes to the Financial Services and Markets Act 2000 (FSMA) and its secondary legislation, and to the FSA Handbook, had been made to transpose MiFID on time.
But was that right? At the time of writing this Briefing the Committee of European Securities Regulators (CESR) was still working on its supervisory convergence programme under Level 3 of the Lamfalussy process. Recently CESR has published consultation papers on best execution and transaction reporting. The FSA is aware that CESR’s Level 3 work might impact on its policy decisions. In light of this the FSA in PS07/2 stated that it will review its policy decisions on issues covered by the consultation papers issued by CESR once CESR has completed its work. The FSA stated that:
Where changes to our rules or guidance may be desirable or necessary as a result, we will consult in the usual way. However, in relation to data consolidation we are reasonably optimistic that we would not need to consult as the guidance currently proposed by CESR is closely aligned with our own proposals.
This publication is written as a general guide only. It is not intended to contain definitive legal advice which should be sought as appropriate in relation to a particular matter.