.jpg)
Reacting to the news that EU prepares tweak to Mifid market rules, Nick Bayley MD in Duff & Phelps’ Compliance and Regulatory Consulting Practice comments:
“When MIFID II was being crafted, the political climate facing the industry allowed policymakers the liberty to throw pretty much anything into the legislation without much pushback.”
“With less than two years since its implementation it is much too soon for a wholesale review of the MIFID II legislation. The fundamental tenets and objectives underlying MIFID II will not change any time soon, and the UK regulator has made it quite clear that most of MiFID II is here to stay.”
“However, it is possible to implement targeted technical changes. But it’s important to keep in mind that the EU policymaking machine is a rather cumbersome and slow-moving one and there is a huge amount of MIFID II policy hard-coded into legislation. It is not really designed to facilitate the making of tactical, quick changes.”
“It will be interesting to see what changes the UK will make post-Brexit. The FCA didn’t vote at the time of its creation in favour of all of MiFID II but it agrees with the objectives of the vast majority of the regulations.”
“The post-Brexit UK financial services industry and also the government will be eager to make the regulatory environment more appealing to businesses and investors and our more principles-based approach to regulation should serve us well in adopting new rules relatively quickly.”
