AFME has responded to the MiFID Review. Its detailed response highlights:

  • the need for a response that is proportionate to the problems identified based on robust and thorough impact analyses;
  • the tight timescale for consultation that has not enabled respondents enough time to assess (or indeed see) supporting evidence for some of the proposed changes and therefore respondents cannot tell whether the rules the Commission proposes would be fit for purpose, avoid unintended consequences or produce regulatory uncertainty;
  • how far the consultation has moved away from the original aim of looking at market fragmentation and investor protection improvements;
  • generally, that many proposals are disproportionate to the perceived problems; and
  • the need to continue to give flexibility to recognise differences in various markets.

The paper comments specifically on most consultation questions. (Source: European Commission Public Consultation: Review of the Markets in Financial Instruments Directive (MiFID): A Response by the Association for Financial Markets in Europe (AFME))