The European Union’s Markets in Financial Instruments Directive II (MiFID II), a series of regulatory changes to become effective in 2018, will have a significant impact on the securities and investment management industry in the EU and around the world. Morgan Lewis’s global team has the knowledge and skill to navigate clients through the challenges presented by the transition to this new regime.
Our lawyers are working with dozens of major securities and investment management clients on the transition to the MiFID regime, including technical and cross-border issues and related dialogues with regulators, including the UK Financial Conduct Authority and the US Securities and Exchange Commission.
But do landmines remain?
The European Securities and Markets Authority foresees regulatory and arbitrage risks in Brexit and has issued an opinion as a practical tool to help achieve supervisory convergence among EU regulators—Brexit negotiations begin on June 19, and Brexit is scheduled to occur on or before March 30, 2019 unless an extension is agreed.
The MiFID II regime will have significant ramifications for US investment managers and their use of client commissions to obtain research—especially as cross-border impacts have yet to be addressed by global regulators.
The MiFID II regime will have ramifications for buy-side global asset managers and sell-side research providers relating to use of dealing commissions and cost allocation for research expenditures.
While the swirl of day-by-day posturing, partisan commentary, and reluctance of the UK and EU authorities to reveal their negotiating hands make it challenging to discern probable routes forward and plan accordingly, there is no reason why even a "hard Brexit" cannot encompass access to the single market for financial services companies.
The FCA has found that client hospitality events do not always enhance the quality of service to clients in line with its inducement rules.
Should Britain decide to leave both the EU and EEA as a result of a “Brexit” vote on 23 June 2016, the impact on UK and EU financial services firms could be significant.
On 12 June 2014 the final texts of MiFID II and MiFIR1 were published in the Official Journal of the European Union, comprising the package of reforms and amendments to the Markets in Financial Instruments Directive2 which establishes the framework for the regulation of financial markets and securities across the European Union.
After two years of discussion and negotiation, it was announced on 14 January 2014 that the European Commission, European Parliament and the Council of the European Union have reached informal political agreement on “MiFID II”, the package of reforms and amendments to the Markets in Financial Instruments Directive which establishes the framework for the regulation of financial markets and securities across the European Union.
Steve Stone of Morgan Lewis will present on the topic of “The framework for unbundling and implications for cross-border research”.
Forthcoming changes to regulation governing the provision and receipt of research are among the most influential aspects of MiFID II in shaping the financial markets landscape.
French AMF's MIFID II Guide for Asset Management Companies
This guide aims to help asset management companies implement the new measures introduced by MiFID II. It will be updated to take account of the additional texts of the directive. The AMF has covered all the key topics of the directive for asset management companies, including product governance, “independent” investment advice, fees or best execution.
EU Update: The Latest Developments on Brexit, MAR, and MiFID II, The Investment Lawyer
Our goal with this article is to provide asset managers with the current state of Brexit so that they can continue to assess its potential impact on their businesses.