FCA urges timely UK firms MiFID II compliance


The UK Financial Conduct Authority (FCA) has urged timely UK firms MiFID II compliance. The FCA noted that the non-compliance will be heavily punished. Are you ready for the MIFID II compliance deadline?

26 July, AtoZForex The Markets in Financial Instruments Directive (MiFID II) will come into force already on the 3rd January 2018. The set of rules for financial market participants aims to solidify the protection of investors. The MiFID II introduces new requirements and also reinforces existing ones.

FCA urges timely UK firms MiFID II compliance

The upcoming regulations come as the biggest regulatory change in the EU. Therefore, the UK brokers will also need to comply with the new requirements. This appears as the biggest regulatory challenge since the financial crisis in 2008. That time, numerous UK financial firms have experienced troubles to comply with the regulations.

The fresh set of financial requirements also concerns first that provide services that have the connection to shares, bonds, derivatives and other financial products. The changes in the regulatory framework include the amendments to MiFID and the new Markets in Financial Instruments Regulation (MiFIR).

The UK financial companies had to submit applications to the regulator by the 3rd July 2017. The applications allowed them to have the necessary permissions prior to the deadline. The UK Financial Conduct Authority (FCA) has urged timely UK firms MiFID II compliance. In its official statement, the FCA has stated the following:

“We expect any firms who have not submitted a complete application by 3 July 2017 to do so without further delay. We will determine complete applications received after 3 July 2017 within 6 months, but we cannot guarantee to do so by 3 January 2018.”

MiFID II non-compliance will be heavily penalized

In addition, the regulator has recommended firms to prepare contingency plans. The plans would be of use if the firms do not receive the authorization prior to the deadline. Moreover, the UK regulator states that it will heavily punish the non-compliance with the upcoming regulations.

The MiFID II framework aims at safeguarding the operations of financial markets. Also, it establishes the opportunities to ensure that firms operate in accordance with regulations.

Firms that intend to carry out business activities without authorization will be punished according to the norms of the Financial Services and Markets Act.

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