Financial Conduct Authority
|Printable version||E-mail this to a friend|
FCA publishes third MiFID II consultation paper
The Financial Conduct Authority (FCA) has yesterday (29 September 2016) published its third consultation paper on the implementation of the revised Markets in Financial Instruments Directive (MiFID II).
MiFID II, which comes into effect on 3 January 2018, updates and improves rules governing the way capital markets function, contributes to the reform of derivatives markets and strengthens transparency of trading. These further the aim of making financial markets more efficient, transparent and responsible.
MiFID II also strengthens the investor protection regime for retail and wholesale investment business and the third consultation paper focuses on a wide range of conduct of business issues, which will increase protections for retail investors.
Andrew Bailey, chief executive at the FCA said yesterday:
“Strengthening consumer protection is one of the key aims of MiFID II and this aligns with, and advances, our own statutory objectives. The changes to rules we are proposing today reflect key themes that we have worked on in both retail and wholesale markets over recent years to promote competition and market integrity.
“As we said in our statement following the EU referendum result, firms must continue to abide by their obligations under UK law including those derived from EU law. They must continue with implementation plans for legislation that is still to come into effect, of which MiFID II is one such example.”
Key proposals of the consultation paper include:
- Strengthening inducement and research rules to drive better competition and ensure research is only produced and consumed where it adds value to investment decisions.
- Implementing requirements of full disclosure of costs and charges.
- Guidance on the responsibilities of providers for the fair treatment of customers.
- Extending the requirement of telephone taping to financial advisers, with the aim of providing benefits to both firms and their clients in resolving disputes in a quick and cost effective manner. We are open to receiving and exploring suggestions on alternative proposals for smaller financial advisers.
The third consultation is open until 4 January 2017, except for comments on Chapter 16 - Supervision manual, authorisation and approved persons - which should reach the FCA by 31 October 2016. A fourth consultation paper is likely to be published towards the end of this year.
Notes to editors
- Consultation paper on MiFID II dated 15 December 2015, covering mainly market issues.
- Consultation paper on MiFID II dated 29 July 2016, covering a range of issues including commodity derivatives and systems and controls requirements.
- On 1 April 2013, the FCA became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
- The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
- Find out more information about the FCA.
Latest News from
Financial Conduct Authority
HSBC voluntarily agrees to provide approximately £4m redress for historical debt collection practices20/01/2017 16:05:00
HSBC has voluntarily agreed to set up a redress scheme for customers who may have suffered detriment by paying an unreasonable debt collection charge imposed by HFC Bank Ltd (HFC) and John Lewis Financial Services Limited (JLFS), the Financial Conduct Authority (FCA) has announced today. Both HFC and JLFS are now part of HSBC Bank Plc.
FCA takes first criminal action against an individual acting as unlicensed consumer credit lender18/01/2017 09:20:00
Mr Dharam Prakash Gopee yesterday, 17 January 2017, appeared at Westminster Magistrates Court charged with offences under the Consumer Credit Act 1974 and the Financial Services and Markets Act 2000.
Two sentenced in insider dealing case16/01/2017 15:20:00
In a prosecution brought by the Financial Conduct Authority (FCA) Manjeet Mohal, a former employee of Logica Plc, has recently been sentenced to 10 months imprisonment suspended for two years in respect of two counts of insider dealing. He was also ordered to undertake 180 hours of community work. Reshim Birk, a neighbour of Mr Mohal’s was sentenced to 16 months imprisonment suspended for two years in respect of one count of insider dealing. He was ordered to undertake 200 hours of community work.
Mark Lyttleton sentenced to 12 months imprisonment for insider dealing22/12/2016 14:05:00
In a prosecution brought by the Financial Conduct Authority (FCA) Mark Lyttleton, a former Equity Portfolio Manager at BlackRock Investment Management (UK) Limited, was yesterday sentenced to 18 months reduced with credit to 12 months on two counts of insider dealing. A confiscation order was also made in the sum of £149,861.27 and costs awarded to the FCA of £83,225.62.
FCA launches consultation on changes to its FSCS rules and invites discussion on future funding of the scheme15/12/2016 15:10:00
The Financial Conduct Authority (FCA) has yesterday announced that it is inviting views on the future funding of the Financial Services Compensation Scheme (FSCS) and has also launched a consultation on a number of specific changes to its scheme rules.