The European parliamentary committee charged with pushing through Mifid II regulations will not block a request to delay the rules.
Regulators in the European Securities and Markets Authority (ESMA) and policymakers in the Commission have been pushing for a delay to the regulation, set to come into effect in January 2017.
With details around Mifid II yet to be finalised, an implementation timescale of under 13 months had caused concern for financial services firms, which lobbied policymakers accordingly.
The MEPs have now agreed not to block a request from ESMA and the Commission to delay its implementation by a year. It was also agreed it would be impractical to only implement parts of the rules.
The parliamentarians are now set to formally convey this message to the Commission, which is then expected to announce a year-long delay to the entire directive.