Combining regulatory tools

4

Recast MiFID

MiFIR MiFID II

Understanding the levels of detail

5

• Framework Directive and Regulation

Level 1 – Framework Legislation

• Delegated and Implementing Acts

Level 2 – Implementing Measures

• Implementing Technical Standards and Regulatory Technical Standards

Level 2.5 – Technical Standards

• ESMA issue non-binding guidance on the meaning of the Levels 1 and 2

• National regulators comply or explain

Level 3 – Regulatory convergence

• EC takes enforcement action for any failure to implement or inconsistent implementation.

Level 4 – Enforcement of Directive

MiFID II timeline

6

2014 2015 2016 2017

Legis

lation

ESMA Level Two

Advice to EC

Due 03/01/15

Level One entry

into force

02/07/14

Level Two

Published in OJ

Due 03/01/16

MiFID II applies

03/01/17

RTS to EC

Due 03/07/15

National

Transposition

Due 03/07/16

ITS to EC

Due 03/01/16

A first glance at the implications

7

MiFID (Directive)

Scope – Exemptions and Definitions

Authorisation

Corporate Governance

Conflicts of Interest

Inducements and Commissions

Client Categorisation

Product Governance

Best Execution

Algorithmic Trading

Passporting

Third Country Firms – Branch

MiFIR (Regulation)

Third Country Firms – Cross Border

Pre and Post Trade Transparency

Trading Obligations

Consolidated Tape

Transaction Reporting

Product Intervention

Approaching your project line by line

11

Helping you tackle MiFID II

12

Briefing series

• Start 2015

• Based on draft Level 2

• Topic by topic

Client toolkit

• Topic by topic

• Level 1 and 2

• Main changes

• Next steps

There is a lot of content in MiFID II and a lot more to come

in Level 2.

Don’t wait for FCA rules or even the final EU legislation

START PLANNING FOR MIFID II NOW

Final thoughts

13

• read

• ascertain gaps

• develop solutions

• identify opportunities

Analysis and

planning

• change

• test

• train

• client contact

Implement

Yo

ur

pro

ject