The Markets in Financial Instruments Directive (MiFID) comes into effect on 1 November 2007. The implementation of MiFID will have a number of important administrative consequences for firms and the FSA. Some changes to firms’ permissions and passports will be necessary. In addition, MiFID introduces a range of new notification requirements and the status of firms’ tied agents, approved persons and waivers from FSA rules may need to be reviewed and updated. Many of the changes will be relevant to non-MiFID firms as well as to MiFID firms.
The FSA has published a MiFID Permissions and Notifications Guide (the Guide). The Guide aims to assist firms in their understanding as to what notifications and permissions they need to make before 1 November 2007.
The Guide is set out in the following chapters:
- Client categorisation.
- Article 3 MiFID exemption.
- Tied agents.
- Systematic internalisers.
- Multilateral trading facilities.
- Commodity derivatives and credit derivatives.
- Client money.
- Outsourcing retail portfolio management to non-EEA service providers.
- Approved persons.
There are also seven Annexes to the Guide and these are:
- Assessment of which firms fall within Article 3 MiFID exemption.
- ISD to MiFID maps.
- MiFID to BCD maps.
- New standard requirement for exempt CAD firms.
- Standard client money requirements.
- Links to relevant FSA documents and forms.
- Actions checklist.
The issues and actions that firms will need to consider are summarised in Annex 7 which the FSA has designed for use as a self-standing reference aid.