Mifid II is on track to be delayed by a year after European parliamentarians agreed not to block requests from regulators or ministers pushing for a delay.
A part delay, of some parts of the European regulation, has been ruled out as impractical, meaning all of the implementation will be delayed by a year, said senior officials overseeing the Mifid II regulation, reports the Financial Times.
The European Commission said in a document this week that neither they nor the industry would be ready for the original January 2017 implementation date, with 2018 seeming a more realistic timeframe.
“Setting the timeframe at January 2018 would appear appropriate so as to be reasonably satisfied that there will be no need for a repetition of the delay, but without extending the timeframe excessively and hence relax the implementation speed,” said the document,which was seen by Reuters.
Previously Martin Merlin, a senior European Commission official, called for a year delay, saying: “The simplest and most legally sound approach would be to delay the whole package by one year.”
Steven Maijoor, chairman of the European Securities and Markets Authority, also backed a delay, saying it may be needed to ensure firms could get IT systems in place.