The European Commission is expected to announce a full one-year delay of MiFID II implementation later this week, with reports suggesting a political agreement was reached on Tuesday.
The widely expected climbdown on MiFID II, which was originally due to be implemented in January 2017, is thought to be due to a number of unresolved issues that have prevent the publication of regulatory technical standards (RTS). Without an RTS document, it is impossible for affected firms to make preparations and invest to be ready in time for the deadline.
However, while some industry commentators had speculated that the regulation could be introduced in several stages, rumours from Brussels now suggest that the entire regulation will be delayed until 2018.
Members of the European Parliament are thought to have been against a full delay initially so as not to be seen as being soft on bankers, but came to an agreement with the commission yesterday to move the deadline back.
A formal statement from the European Commission is expected before the end of this week.