On 1 November 2007 the FSA published on its website a general information document which advises readers that the Markets in Financial Instruments Directive came into force on 1 November 2007 and that at the same time changes to the approved persons regime have come into force. The document then goes on to highlight changes to firms’ permission, passporting rights and approved persons which are now recorded on the FSA Register.
In relation to permissions the FSA notes that it has now applied the relevant transitional arrangements HM Treasury provided and have made the necessary changes to firms' records. The FSA states that firms should check their records on the FSA Register to ensure their designated investment business activities are accurately recorded. The FSA has also amended existing requirements and/or limitations that referred to the previous client classifications to reflect the new MiFID definitions. The FSA has given those firms who had permissions to operate an alternative trading system (ATS) the new activity of 'operating a multilateral trading facility.'
In relation to passporting the FSA has changed existing ISD passports to MiFID passports. This will allow MiFID firms (which does not include Article 3 exempt firms) to continue to conduct investment business under a corresponding MiFID passport. The FSA states that firms will need to complete a Passport Notification Form if they are:
- a firm wishing to extend its MiFID passport to include additional investment services activities and/or ancillary services; or
- a bank wishing to take advantage of the range of MiFID activities available to it under the Banking Consolidation Directive.
In relation to approved persons, the FSA states that it will convert all relevant 'controlled functions' into the new functions and withdraw the CF8 function from individuals approved in all MiFID firms. Previous controlled function(s) will show an end date of 31 October 2007 and the FSA aims to have the FSA Register updated by the end of November 2007.
View MiFID implementation and approved persons changes - changes to the FSA Register, 1 November 2007