CP16/29: Markets in Financial Instruments Directive II implementation – Consultation Paper III

Open consultation: CP16/29
29/09/2016
Consultation closes - chapter 16
31/10/2016
Consultation closes
04/01/2017
Policy statement
Q2 2017
Q2 2017

We are consulting on our third set of implementation proposals for MiFID II and seeking views on our proposed changes to the FCA Handbook.

Show CP16/29

Why we are consulting on this

The Markets in Financial Instruments Directive II (MiFID II) takes effect on 3 January 2018. This consultation paper (CP) forms part of our process to make the necessary changes to the Handbook to implement it.

This CP is split into two parts:

  • Part I deals with conduct of business issues
  • Part II deals with other matters covering a range of issues not covered in our previous two CPs, including product governance and additional perimeter guidance

Our proposals pick up on several of the themes of our recent work in the UK on retail and wholesale conduct issues. They also reflect areas that we have worked on to promote competition and market integrity.

We have published two previous CPs on MiFID II implementation:

  • CP16/19, published in July 2016, covered a range of issues including commodity derivatives and systems and controls requirements
  • CP15/43, published in December 2015, mainly covered market issues

Who this paper is aimed at

Our proposals will affect a wide range of firms we authorise and recognise, as well as unregulated entities trading commodity derivatives. Firms particularly affected will be:

  • banks
  • investment firms
  • interdealer brokers
  • stockbrokers
  • investment advisers
  • corporate finance firms and venture capital firms
  • investment managers, including individual and collective portfolio managers
  • financial advisers
  • local authorities

Consumers have a clear interest in financial markets that operate fairly and transparently, which is the rationale for the proposals in this consultation. The conduct of business rules and product governance rules will be of greatest relevance to consumers.

Next steps

This consultation has now closed. We will consider your feedback and publish our rules in a Policy Statement in the first half of 2017.

A fourth consultation paper on MiFID II implementation was be published in December 2016.

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