Applications and notifications under MiFID II

The Markets in Financial Instruments Directive (MiFID) II applies from 3 January 2018, and will deliver some important changes to the scope of regulation in the UK. It introduces new processes for authorising investment firms and will require investment firms and others to make a range of notifications.

As a result, it will have a significant impact for a range of authorised persons, recognised investment exchanges, and some businesses that currently do not have to be authorised. It also means that some other firms have to apply for authorisation, variations of permission or make notifications to us in a specific way.

In particular, MiFID II introduces a new investment service for firms operating an organised trading facility (OTF) and the new financial instrument of emission allowances. It also introduces changes to the scope of existing investment services and financial instruments, and narrows the scope of exemptions currently provided under MiFID.

MiFID II also requires entities that carry out the following data reporting services to be authorised:

  • operating an approved publication arrangement (APA)
  • operating a consolidated tape provider (CTP)
  • operating an approved reporting mechanism (ARM)

In addition, HM Treasury is creating a new investment type of structured deposits for specific regulated activities and is including certain types of binary options in the investment type of contract of difference.

MiFID II: application and notification user guide

Show MiFID II – Application and notification user guide (PDF)

We have published this user guide to help firms decide which applications and notifications they should make and to explain how to do so. Links to the relevant forms are also included in the guide.

The user guide is aimed at a very broad audience and covers:

  • what firms need to consider
  • key changes
  • investment firms
  • fees
  • article 3 MiFID exempt firms
  • approved persons
  • structured deposits
  • data reporting services providers (DRSP)
  • market data processor (MDP) on-boarding and market data reporting
  • market infrastructure providers
  • passport notifications and tied agents
  • commodity regime
  • transparency waivers and deferrals
  • non-discriminatory clearing access for financial instruments

Ensuring readiness for MiFID II implementation

In advance of when the MiFID II regime comes into effect on 3 January 2018, firms must ensure they have the correct permissions in place to carry out the relevant regulated activities from that date.

Firms will be able to apply for authorisation and variations of permission (VoPs) from 30 January 2017, and for passport notifications from 31 July 2017.

Deadlines for authorisation and passporting

We encourage firms to submit applications and notifications as early as possible, but the deadlines for authorisation and passporting are:

  • investments firms applying for authorisation or a variation of permission: 3 July 2017
  • data reporting services providers (DRSPs) applying for authorisation: 3 July 2017 (with the exception of a non-equity CTP where firms should apply for authorisation by March 2019)
  • cross-border service passport notifications: 2 December 2017, this deadline will help us assess applications and notifications and/or send them to relevant regulators in the European Economic Area (EEA) before MiFID takes effect on 3 January 2018.
  • establishment passport notifications: as early as possible after the passporting gateway opens on 31 July 2017