EP adopts MiFID 2: In its plenary session on 15 April, EP formally approved the "MiFID 2" package of a revised Markets in Financial Instruments Directive (MiFID) and Markets in Financial Instruments Regulation (MiFIR). The main changes from the current regime had already been agreed between EP and the Council and, in brief:

  • extend the scope of regulation to not only regulated markets and multilateral trading facilities (MTFs) but also to organised trading facilities in a wide variety of instruments;
  • include product intervention powers to ban marketing of "toxic" products to certain investors;
  • introduce curbs on high frequency algorithmic trading; and
  • remove current exemptions for certain participants in the commodity derivatives markets and impose position limits on commodity derivatives trading.

Once formally adopted by the Council and published in the Official Journal of the EU, the package will take effect in 30 months. In the same sitting, EP adopted the Regulation on Central Securities Depositaries. (Source: EP Adopts MiFID 2)

EP adopts PRIIPs KID Regulation: In its plenary session on 15 April, EP formally approved the Regulation on the Key Investor Document (KID) for Packaged Retail Investment and Insurance Products (PRIIPs). Retail investors must receive three-page, standard format KIDs for all packaged retail investment (except UCITS, which have their own alternative) and certain investment insurance products. Once formally adopted by the Council and published in the Official Journal of the EU, the new rules will take effect in two years' time (Source: EP Adopts PRIIPS KID Regulation)

EP adopts UCITS V: In its plenary session on 15 April, EP formally approved the UCITS V Directive which requires UCITS to have independent, authorised depositaries, which will be liable for investor losses, and which sets controls on variable remuneration of key staff within the fund manager. It also sets requirements for administrative penalties for breach of rules and caters for whistleblowing. Once formally adopted by the Council and published in the Official Journal of the EU, the new rules must be implemented within 18 months. (Source: EP Adopts UCITS V)

EP adopts PAD: In its plenary session on 15 April, EP formally approved the Payment Accounts Directive (PAD), which caters for all consumers to have a basic bank account in the EU which they can use to deposit and withdraw funds, and from which they can make payment transactions. There will be rules on compatibility of fees, clarity of information and on making it simple to switch accounts. Once formally adopted by the Council and published in the Official Journal of the EU, the new rules must be implemented within two years. (Source: EP Adopts PAD)

EP adopts bank resolution package: In its plenary session on 15 April, EP formally approved the Bank Recovery and Resolution Directive (BRRD), the Deposit Guarantee Schemes Directive (DGSD) and the Single Resolution Mechanism (SRM) Regulation. (Source: EP Adopts Bank Resolution Package)