MiFID Review

Implementing MiFID II (Markets in Financial Instruments Directive) and MiFIR (Markets in Financial Instruments Directive) by 3 January 2018 was a significant undertaking for the finance industry as it overhauled existing regimes and addressed all investment services and MiFID financial instruments. Both the directive and the regulation prescribed that the European Commission (Commission) would review the effectiveness and impact of several requirements in relation to investor protection and market structure and transparency topics. The Commission commenced that process in early 2020, and whilst the review was not intended to cover the entirety of the existing regime, it was always going to be wide ranging.

Coming only two years after the regime was implemented, many within the industry (including regulators) are still facing uncertainties and implementation challenges which, in a number of areas, have been compounded by Brexit. As a result, market participants have been keen to ensure that this review clarifies existing requirements rather than providing for wholesale re-writes. However, the volume of proposals published already indicates that many aspects of the MiFID II framework are on the table for review, and the end legislative outcome could involve some significant and substantial revisions to the regime. Focus, at least in the short term, will be on measures that form part of the Commission’s overall Covid-19 recovery.

Our Financial Services Regulatory team are producing briefing papers on the main proposals as they develop, drawing out key changes and impacts for market participants, which can be accessed via the links below. If you would like to receive more information please get in touch with your usual A&O contact.