The UK’s Financial Conduct Authority (FCA) is seeking feedback from industry stakeholders on how it might implement certain aspects of MiFID II.
While the rules of MiFID II are outlined by the European Securities and Markets Authority, national regulators have some freedom in how those rules are applied to their local markets.
The FCA has some policy choices to make already, prompting the launch of today’s consultation, and will then hold a more extensive review of rule changes in MiFID II at the end of 2015.
“We have policy choices to make on some areas of how the directive applies in the UK, but not in all, and this paper sets out what those are,” said David Geale, director of policy at the FCA.
“In those areas where we can be flexible in our approach, we want firms, large and small, to have an opportunity to give us their early views on the changes we are considering.”
Areas where the FCA has choices include extending the recording of telephone conversations and electronic communications requirements to a broader range of firms, including discretionary investment managers.
It is also asking for views on cost and charges disclosure and inducement rules, including unbundling of research and execution commissions.
The FCA also acknowledged that MiFID II’s implementation timetable is a major challenge for firms, and it expects to have final rules in place by July 2016, enabling firms to get ready for final implementation on 3 January 2017.
The consultation is open until 26 May and firms, trade bodies and consumer groups are encouraged to fill out an online response form or send the FCA their views.