MiFID II/MiFIR
MiFID II/MiFIR introduces changes that will have a large impact on the EU's financial markets, these include transparency requirements for a broader range of asset classes; the obligation to trade derivatives on-exchange; requirements on algorithmic and high-frequency-trading and new supervisory tools for commodity derivatives. It will also strengthen protection for retail investors through limits on the use of commissions; conditions for the provision of independent investment advice; stricter organisational requirements for product design and distribution; product intervention powers; and the disclosure of costs and charges.
ESMA Final Report on MiFID II/MiFIR Technical Standards
The MFSA refers to the circular as issued on 23rd December 2014, wherein it had outlined ESMA's Consultation Paper on the draft regulatory technical and implementing standards (RTS/ITS) regarding the implementation of MiFID II and MiFIR. The referred technical standards focus on authorisation, passporting, registration of third country firms and cooperation between competent authorities. Industry participants should note that these technical standards have recently been submitted to the European Commission for endorsement. The final report on MiFID II/MiFIR technical standards can be accessed from the following link: http://www.mfsa.com.mt/pages/readfile.aspx?f=/files/LegislationRegulation/regulation/securities/MiFID/2015-esma-1006_-_mifid_ii_final_report_on_mifid_ip_technical_standards.pdf.
ESMA: Responses to the consultation on draft guidelines on complex debt instruments and structured deposits for MiFID II
The MFSA refers to the Industry Update dated 27th April 2015 wherein it had disseminated ESMA's Consultation Paper on draft guidelines on complex debt instruments and structured deposits. The Consultation Paper focused on draft guidelines on complex debt instruments and structured deposits and also covered the concept of embedded derivative for debt instruments. These guidelines are intended to enhance investor protection and are important for the correct classification of MiFID debt instruments (bonds, securitised debt and money market instruments) and structured deposits as either 'complex' or 'non-complex' for the purposes of Article 24(4) of MiFID II.
The consultation period closed on 15 June 2015 and ESMA expects to publish final guidelines in Q4 2015. The responses to this consultation can be accessed from the following link: http://www.esma.europa.eu/consultation/Consultation-draft-guidelines-complex-debt-instruments-and-structured-deposits#responses
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