On 29 July 2016, the FCA released consultation paper 16/19: MiFID II Implementation.
The FCA is seeking stakeholders' views on its proposals for changes to the Handbook to implement the requirements of MiFID II and MiFIR.
Issues covered include:
1. Commodity derivatives
Handbook proposals on MiFID II's regime for position
limits, position management and reporting for
commodity derivatives contracts.
Proposals for updates to:
3. Prudential standards
- notification requirements for breaches and
information requirements under MiFIR
- transitional provisions for transaction reporting, and
- changes to passporting requirements.
Handbook proposals to reflect the new investment
service of operating an OTF and the abolition of the
local firm exemption.
4. Senior management arrangements, systems
Proposals to introduce new management body
responsibility and format requirements, and how they
would apply to branches of non
5. Remuneration requirements for sales staff
Handbook proposals aimed at preventing sales staff from
being incentivised to act in ways detrimental to the best
interests of customers.
Handbook proposals to introduce a single FCA resource
for MiFID II and other domestic whistleblowing
7. Client assets
Minor changes to align client asset rules with MiFID II.
8. Complaint handling
Handbook proposals to set out the enhanced complaint
handling rules in MiFID applicable to a wider range of
clients than currently.
Initial and ongoing fees proposal for firms applying to
operate an OTF or MTF, and the on
boarding fee for
firms connecting to the FCA's Market Data Processor.
The deadline for responses is
28th October 2016, and
a MiFID II policy statement is expected in the first half of
The paper is available to view