CP16/19: Markets in Financial Instruments Directive II implementation proposals – Consultation Paper II

Open consultation: CP16/19
29/07/2016
Consultation closed
28/10/2016
Policy statement
Spring 2017
Spring 2017

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

Show CP16/19

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 the FCA’s process to make the necessary changes to the FCA’s Handbook to implement it.

This CP follows on from CP15/43, published in December 2015, where we set out the background to the introduction of MiFID II and its key objectives. This mainly covered issues relating to new rules governing the secondary trading of financial instruments.

This CP covers a range of issues including position limits and reporting for commodity derivatives, systems and controls requirements for firms providing MiFID investment services, along with fees and client asset protections.

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:

  • investment banks
  • interdealer brokers
  • stockbrokers
  • investment managers
  • investment advisers
  • corporate finance firms and venture capital firms
  • trading venues including regulated markets
  • multilateral trading facilities
  • prospective organised trading facilities
  • data reporting service providers

Consumers have a clear interest in financial markets that operate fairly and transparently, which is the rationale for the proposals in this consultation. Certain aspects of the subjects covered, including complaint handling and remuneration of sales staff, are of more concern to consumers. A third consultation paper should cover the MiFID II rules covering the conduct of business, which will be of most concern 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.

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