In addition, it will be interesting to note the development of the exchange-traded fund (ETF) industry – will 2015 be the year of ETFs?
Certainly, when you look at the appetite in the ETF market to embrace the regulatory changes and explain how their products meet these new and improved standards, there is momentum.
So going back to implementing this sea of regulatory change, we cannot safely say that we have completed the task of addressing all of the concerns outlined by the G20, though we should be able to take some comfort that the global regulatory community appears to recognise that we have made headway.
What is clear is that in 2015 the industry will continue to press ahead with mapping out and practically implementing key changes brought about by Mifid II, while also ensuring that it keeps a mindful eye on changes that may affect the development of new kinds of investment products.
As firms increasingly grow their businesses and market on a cross-border basis, one will also need to focus on the cross-border application of regulatory change across the business as we move towards an increasing trend towards global principles applied at a local level.
Monica Gogna is a partner in the financial regulation and investment management team at Ropes & Gray LLP
Mifid II rule changes: Key dates
December 2014 – Mifid II: European Securities and Markets Association’s (Esma) final technical advice for delegated acts.
February 23 2015 – Vote of European Economic and Social Committee on money market fund regulation expected.
June 2015 – Mifid II: Esma to submit final regulatory technical standards to the European Commission.
July 2015 – Esma opinion due on whether to extend the Alternative Investment Fund Managers Directive (AIFMD) passport to non-European Union AIFMs and AIFs.
December 2015 – Mifid II: Esma to submit final implementing technical standards to the European Commission.
Start of 2016 – Packaged retail and insurance-based investment products: deadline for the delivery of technical standards.
March 18 2016 – Date by which member states must transpose Ucits V into national law.
June 2016 – Date by which the delegated acts under level two must be transposed by member states (24 months after Mifid II entered into force).
July 3 2016 – Member states to adopt and publish measures transposing the Mifid II directive into national law.
January 3 2017 – Mifid II officially comes into effect.
July 22 2017 – The European Commission will start a review on the application and the scope of the AIFMD.
FCA on Mifid II: Understanding the changes
Maggie Craig, acting head of savings and investments at the FCA, speaking at the FCA Mifid II Conference 2014:
“Implementing Mifid’s investor protection requirements should be about ensuring that both the standards of conduct and the organisation of firms reflect the interests of consumers and the duties owed to them.