FCA expects to accept Mifid II applications next year

FCA expects to accept Mifid II applications next year

The Financial Conduct Authority is expecting to accept applications for authorisation and variation of permission under Mifid II at the start of next year.

At a roundtable event for trade associations, the FCA said it wants to open a gateway for applications in January 2017.

But it acknowledged that this would depend on the passage of legislation which introduces Mifid II so it cannot be definite.

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The regulator also said that it would appreciate early applications from firms to help it handle the work involved.

The new rules will require some firms, such those carrying out speculative trading in commodity derivatives and firms utilising high-frequency trading methods, to be registered for their status or activities for the first time.

This will mean some will have to apply to the FCA for new permissions while others will have to go through its authorisation process again.

The FCA added that it is currently drawing up revised authorisation forms which it hoped would be ready next month (September) after consulting with trade bodies.

The minutes of the roundtable meeting said: “Alongside work on policy the FCA was also continuing with the practical arrangements that it needs to have in place for Mifid II.

“Work is ongoing on the development of the market data processor that will be used to receive and store transaction reports, commodity position reports and data for transparency calculations.

“Preparatory work is being undertaken relating to the setting of position limits.”

Following June’s vote to leave the European Union, FTAdviser reported that regulatory experts did not think it would lead to less EU regulation.

EU member states have until 3 July 2017 to adapt their domestic laws and regulation to the new Mifid II rules.

During the meeting concern was expressed by several associations about the fact the implementation dates for Mifid II and Priips were not aligned.

In response the FCA said the deadline for the date of application in Priips is set in Level 1 and that firms need to continue to work towards this deadline for implementation.

The secretary general of trade body the European Federation of Financial Advisers and Financial Intermediaries has said passporting is the main issue UK advisers should be concerned about during the Brexit negotiations.