The release by the UK Financial Conduct Authority (FCA) on 3 July 2017 of its final rules on the implementation of the revised Markets in Financial Instruments Directive 2014/65/EU and the new Markets in Financial Instruments Regulation (EU) 600/2014 (together with the secondary legislation issued pursuant to the same, “MiFID II”) materially completed UK implementation of MiFID II.

When MiFID II takes effect on 3 January 2018, it will replace and materially expand the current framework for the regulation of financial markets and the provision of investment services in the European Union (EU).¹ MiFID II will push the EU significantly closer to the goal of harmonised regulation of the operation of financial markets. A number of the rules will be directly applicable across the EU. In an effort to bring about harmonised regulatory practice in respect of MiFID II requirements, the European Securities and Markets Authority (ESMA) has issued substantial guidance on the proper interpretation of key provisions. The FCA rules reflect ESMA’s guidance.

However, a fully harmonised legal and regulatory framework has not been politically achievable. Consequently, the full impact of MiFID II implementation on firms will largely depend on who their “home regulator” is. Please click here for a summary overview of the FCA’s rules in some key areas of MiFID II generally affecting investment managers.

¹ MiFID II will also in due course be included in the Treaty of the European Economic Area (“EEA”) and apply as law in the EEA countries that are not part of the EU