Industry demands answers on Mifid II deadline delay

FCA interior 620x430The industry is calling for confirmation of whether the deadline for implementation of Mifid II will be delayed, as fears grow that smaller firms are falling behind in their preparations.

An FCA roundtable on Mifid II, attended by the regulator and various industry trade bodies, highlighted the confusion in the industry over Mifid II deadlines.

The implementation date for Mifid II was January 2017, but senior European officials had called for a delay to January 2018 as the industry is not prepared. Most recently senior officials at the European Commission said neither they nor the industry would be ready for January 2017.

At the roundtable trade bodies highlighted the need for confirmation on the deadlines and whether any other interim deadlines for Mifid II would also be changed.

“In response to a question, the FCA stated that although there had been significant public discussion of MiFID II’s date of application, there had not been the same discussion of other dates in the legislation and it was therefore not clear if these dates will also change,” state the meeting minutes.

“It was noted by some associations that firms are keen for clarity in transposition and implementation dates for operational and system-build reasons, often to be able to finalise their own internal development dates, and to request the relevant funding.

“Several associations noted that there is still proactive engagement from large firms, but that some smaller firms may be falling back. Those who have begun MiFID II preparation work, typically the larger firms, are pushing on as they realise the scale and extent of the work required for readiness,” say the meeting minutes.

“The FCA noted the importance of keeping the momentum going, despite the potential delay and said it was considering how it could best communicate that to market participants.”