Q&As

When and how should a UK firm apply for authorisation or a variation of permission under MiFID II?

read titleRead full title
Published on LexisPSL on 27/06/2017

The following Financial Services Q&A provides comprehensive and up to date legal information covering:

  • When and how should a UK firm apply for authorisation or a variation of permission under MiFID II?
  • What is MiFID II, and when will it take effect?
  • What are the key changes under MiFID II?
  • Services and activities
  • Financial instruments
  • Exemptions
  • Proprietary traders and direct electronic access
  • What application forms should UK firms use to apply for authorisation or a VoP under MiFID II?
  • FCA forms
  • PRA forms
  • More...

This Q&A explains when and how a UK firm should apply for authorisation or a variation of permission (VoP) under the revised and recast Markets in Financial Instruments Directive (Directive 2014/65/EU) (MiFID II). Firms that carry on MiFID II activities without the necessary permissions may face civil, regulatory and/or criminal consequences. More detailed information can be found in the MiFID II application and notification user guide that was published by the Financial Conduct Authority (FCA) in January 2017. The Prudential Regulation Authority (PRA) has also produced a document setting out the authorisations process for MiFID II.

What is MiFID II, and when will it take effect?

From 3 January 2018, the Markets in Financial Instruments Directive (MIFID) will be replaced by a new Directive (MiFID II) and Regulation (MiFIR). MiFID II and MiFIR (the level 1 legislation) will be supplemented by detailed rules adopted by the European Commission in the form of delegated or implementing regulations or directives (the level 2 legislation). Once implemented, the new legislation will lead to a reshaping of EU financial markets, the products and services investment firms provide and the relationship between the firms and their customers.

As a directive, MiFID II will need to be transposed into the law of each Member State, including the UK, by 3 July 2017, while MiFIR will have direct effect as a regulation.

For more information

Related documents:

Popular documents