This Policy Statement sets out our near final rules in the areas that we consulted on in CP15/43[6] (where we consulted mostly on markets issues) and CP16/19[7] (where the main issues consulted on were systems and controls, client assets and commodity position limits). It also covers a small number of issues we consulted on in CP16/29[8] and CP16/43[9] and we also provide an update on our thinking on our proposals for recording of telephone conversations covered in CP16/29.
Who this applies to
This Policy Statement affects a wide range of firms that we authorise and recognise, particularly investment banks. Firms affected include:
interdealer brokers
firms engaging in algorithmic and high-frequency trading
trading venues including regulated markets, multilateral trading facilities, and prospective organised trading facilities
prospective data reporting service providers
investment managers
stockbrokers
investment advisers
corporate finance firms and venture capital firms
What you need to do
Firms need to continue with their preparations for the application of MiFID II on 3 January 2018. As noted above, it is particularly important that if firms need to make applications for authorisation or variation of permission linked to the changes in MiFID II that they do so as soon as possible. Firms also need to respond to our fifth Consultation Paper (CP17/8[10]) on MiFID II implementation which is being published at the same time as this Policy Statement.
Next steps
In June, we will publish a second Policy Statement covering the remaining issues such as conduct of business, changes to the scope of the application of the principles for businesses and perimeter guidance, and client asset protections.
