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MiFiD II- the real work begins

The European Parliament yesterday approved the April draft of MiFid II, effectively ending the political phase of its gestation. ESMA will now (officially) begin the mammoth task of crafting the all-important detail, the following (to be done by) time line has now begun:

  • ·         The Commission formally requests ESMA’s advice on Level 2 measures- delegated Acts and technical standards
  • ·         20 May- ESMA Board of Supervisors signs off on all Level 2
  • ·         Early June- ESMA issues two discussion papers: RTS and their implementation, and a consultation on Delegated Acts.  Both papers will be subject to a two month response interval
  • ·         June 2014- MiFid II / MiFiR published in the OJ
  • ·         December 2014- ESMA delivers its advice on delegated Acts to the Commission
  • ·         June 2015- ESMA delivers its RTS advice to the Commission
  • ·         December 2015- ESMA delivers its advice on implementation of RTS to the Commission
  • ·         June 2016- Member States will transpose MiFiD II into their national law
  • ·         January 2017- MiFiD II enters into force

“The new regulations will better serve the real economy…They will establish a safer, more transparent and more responsible financial system and restore investor confidence in the wake of the financial crisis,” Michel Barnier said in an unsurprising statement.

In the space of two days the European parliament has closed the curtain on three huge, all long-awaited, legislative packages: banking union, market abuse and MiFiD II. The prospect of fundamental political shifts following the 22nd May election has blasted a (temporary) motorway through the EU political labyrinth. While the EU would never be accused of making law in haste, the spectacle of such consequential legislation being subject to extreme brinkmanship is unpalatable at best; though perhaps preferable to the obvious solution of having more frequent EU elections.

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