The impact of Brexit on the MiFID II regime
The impact of Brexit on the MiFID II regime

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • The impact of Brexit on the MiFID II regime
  • UK legislation
  • Binding technical standards and rule changes
  • Temporary Permissions Regime
  • The financial services contracts regime
  • Temporary transitional power
  • UK regulators’ approach to no-deal Brexit
  • Passporting and cross-border activities post-Brexit
  • Transparency regime
  • Transaction reporting and reference data
  • more

This Practice Note provides information relating to the impact of Brexit on the recast Markets in Financial Instruments Directive (Directive 2014/65/EU) (MiFID II) and the Markets in Financial Instruments Regulation (Regulation (EU) 600/2014) (MiFIR) (together, the MiFID II regime). It summarises the approach being taken in relation to the MiFID II regime generally, in particular in the event of a no-deal scenario. It also sets out key issues for specific aspects of the regime, including passporting, transparency, transaction reporting and reference data, data reporting service providers and market operators.

As the UK prepares to leave the EU, regulated firms should have considered if or how they will be affected and what action they may need to take. As more information emerges about what Brexit will mean for financial services, firms need to make sure they understand the implications and plan accordingly.

If the UK leaves the EU without a deal, the UK would be outside the EU’s framework for financial services. The UK’s position in relation to the EU would be determined by the default Member State and EU rules that apply to third countries at the time of exit. As a general principle, the UK would also need to default to treating EU Member States largely as it does other third countries, although there are cases where a different approach would be