Telephone 020 3813 2890 for a free no obligation chat about your regulatory requirements with one of our compliance consultants.
© Compound Growth Limited 2012 - 2018 | Terms of Use
Registered in England and Wales as limited company number 07626537 - Registered Office 120 Pall Mall, London, SW1Y 5EA
We use cookies, if you consent to this use, please continue to browse our site.
Here to help with Regulation and Compliance
MiFID II Third Consultation Address Investor Protection Measures
12th October 2016
MiFID II Implementation: Addressing Investor Protection
The FCA has now published their third consultation paper on the implementation of MiFID II - the revised Markets in Financial Instruments Directive.
Due to come into effect on 3rd January 2018, MiFID II looks to improve and enhance the rules that govern the way capital markets function as well as contribute to the reform of derivatives markets and strengthen the transparency of trading. Thus, under MiFID II, it is hoped that financial markets will become more efficient, transparent and responsible.
The revised Markets in Financial Instruments Directive also looks to strengthen the investor protection regime for retail and wholesale investment business.
The FCA’s previous MiFID II consultation papers discussed mainly market issues (first MiFID II consultation paper CP15/43 in December 2015) and a range of issues including commodity derivatives and systems and controls requirements (second MiFID II consultation paper CP16/29 from July 2016).
The FCA's third consultation paper however, now looks to focus upon a wide range of conduct of business issues that will increase retail investor protections with the following key proposals made:
- Strengthening inducement and research rules
To drive better competition and ensure research is only produced and consumed where it adds value to investment decisions.
- Implementing requirements of full disclosure of costs and charges.
- Guidance on the responsibilities of providers for the fair treatment of customers.
- Extending the requirement of telephone taping to financial advisers
With the aim of providing benefits to both firms and their clients in resolving disputes in a quick and cost effective manner.
The FCA's third MiFID II consultation is open until 4th January 2017, except for comments on Chapter 16 ( the Supervision manual, authorisation and approved persons), which have an earlier response deadline of 31st October 2016.
It is also expected that the FCA will publish a fourth MiFID II consultation paper before the end of the year.
MiFID II Compliance Support
If your firm is currently reviewing how MiFID II will impact your business and require support or assistance in planning for MiFID II implementation, please contact our experienced regulatory & compliance support team, who would be happy to help.
Other MiFID articles:
- Sep16 MiFID II Latest Roundtable
- MiFID Investment Firms Register
- Feb16 MiFID II Roundtable update
- MiFID II for Investment Managers
- MiFID II: FCA Consults upon Secondary Trading of Financial Instruments
- Dec15: Complex Products & Appropriateness Testing under MiFID II
- Oct15 MiFID II: Update on ‘The Road to MiFID’
- Aug15 Update to MiFID II Taping Rules for Financial Advisers
- MiFID II Overview
News & Views
Read our latest articles, news and views affecting compliance and regulation in the UK Financial Services Industry.
Comment from the FCA:
The FCA's Chief Executive, Andrew Bailey, said:
“Strengthening consumer protection is one of the key aims of MiFID II and this aligns with, and advances, our own statutory objectives. The changes to rules we are proposing today reflect key themes that we have worked on in both retail and wholesale markets over recent years to promote competition and market integrity.”
Send Email
Call by Telephone:
(020) 3813 2890
