On September 12, the FCA published a speech by Martin Wheatley, FCA Chief Executive, on the FCA’s plans for 2014, which focus on issues relating to asset management, MiFID II and EMIR (the Regulation on OTC derivatives, central counterparties and trade repositories) (Regulation 648/2012). Speech.
MiFID II
European Parliament Will Now Consider MiFID II Legislative Proposals During December Plenary Session
The European Parliament updated its procedure files on MiFID II legislative proposals further to last week’s update, and will now consider these proposals at its plenary session held on December 9-12.
The MiFID II legislative proposals will replace and recast the Markets in Financial Instruments Directive (2004/39/EC) (MiFID). Procedure Files.
EIOPA Publishes Concerns on Investment Insurance Products’ Inclusion under MiFID II
A letter sent on September 19 from Gabriel Bernardino, the Chairman of the European Insurance and Occupational Pensions Authority (EIOPA), to the European Commission Director General of Internal Market and Services, Jonathan Fowl, was published by EIOPA on September 20. The letter sets out EIOPA’s concerns around the selling of investment insurance products covered by the MiFID II.
In the letter, EIOPA states that such an inclusion could lead to regulatory inconsistency and have a negative impact on consumer protection, with the consequential risk that the products could be sold in accordance with sub-optimal requirements. The letter goes on to list three reasons why rules governing the sale of investment insurance products should instead be included under the Insurance Mediation Directive (IMD) regime:
- To keep the rules of the sale of insurance packaged retail investment products within legislation designed for diverse forms of insurance distribution;
- To avoid MiFID-style client categorization; and
- To maintain the “demands and needs” test. Letter.
EU Council Compromise Proposals on EMIR and MiFID II
On 21 June 2012, the Presidency of the Council of the EU published compromise proposals (dated 21 June 2012) on MiFID II and EMIR. Both compromise proposals state that the proposals have been prepared following discussions in meetings of the working party on financial services. Compromise Proposal on MiFID II. Compromise Proposal on EMIR.
The MiFID II Proposals – 10 Key Points
On October 20, the European Commission tabled proposals to significantly revise the Markets in Financial Instruments Directive (MiFID). These proposals (known as MiFID II) are intended to: (i) make financial markets more efficient and resilient; (ii) take account of technological developments since MiFID was implemented in November 2007; (iii) increase transparency of both equity and non-equity markets and (iv) reinforce supervisory powers and introduce a stricter framework for commodity derivatives markets and strengthen investor protection. Click here to read more.