FCA launches Mifid II cost-benefit analysis

The FCA is questioning almost 5,000 firms in its cost-benefit analysis of Mifid II regulation.

The regulator says it will carry out the cost-benefit analysis on the areas of the regulation where it has discretion. It has issued a questionnaire to almost 5,000 firms to canvas views, and will take responses until 23rd October. Any analysis will be issued in the Mifid II consultation paper, which does not have a set issue date yet.

“The FCA encourages trade association members to complete and return the [cost-benefit analysis] as this will assist decision-making on the policy proposals to be contained in the forthcoming MiFID II [consultation papers],” say notes of a Mifid II roundtable held earlier this month, that have just been released.

“The majority of the [cost-benefit analysis] questionnaire focuses on the retail conduct issues raised in the [discussion paper] published earlier this year,” the FCA adds.

The regulator is also looking at potentially releasing its Mifid II consultation paper in two parts, due to the delay in final rules from the European Commission. It would release one in December this year on issues that are more certain and another next year.

However, the delays from Europe on the regulation are unlikely to lead to a delay in the January 2017 implementation date, says the FCA. 

“The FCA stressed that although there have been delays to some elements of the EU legislative timetable, there can be no assumption that the July 2016 transposition deadline or January 2017 date of application will change,” the meeting minutes state.

“It was recognised by the FCA that the later the [consultation papers] are published, the later firms have certainty for implementation.”

More information was had due to be released on 21st September, when the European Commission (EC) had planned to hold a workshop to answer questions from member countries. However, the workshop was cancelled as too many questions were submitted. 

“The EC is looking to find another date on which a longer discussion can be had on transposition issues,” says the FCA meeting minutes.