A delay in the implementation date for MiFID II has been widely anticipated for some time now (see earlier RegZone reports of December and November). On 10th February the European Commission finally confirmed its agreement to a one year delay to the full MiFID II package (i.e. both to MiFID II and to MiFIR) by making formal proposals to delay application until 3rd January 2018. The formal proposals come in the form of an amending Directive and Regulation which are yet to be adopted by the co-legislators (the Council and Parliament) but are likely to be fast-tracked. [Read more]

Source: CMS

The European Union’s Economic and Financial Affairs Council will meet on Friday 12 February 2016. At that meeting, the Council will be invited to agree to: Apply the 4th Anti-Money Laundering Directive to virtual, digital and crypto-currency exchanges and bring forward the transposition date for the Directive, so that it begins to apply to all relevant firms from 31 December 2016 (at the latest). [Read more]

Source: Cooley

In this edition of the Financial Markets Disputes and Regulatory Update, the key financial markets cases have been considered, and banking-related regulatory action, from the second half of 2015, and distilled them into a list of points which are worth taking away. This will provide readers with a digestible account of new developments that may feed into ongoing work. [Read more]

Source: Dentons

8 February marks the first stage in the introduction of the Senior Managers and Certification Regime. This regime applies to all individuals exercising a senior management function. In many cases non-executive directors will also be covered, for example if they chair any committee directly relevant to a firm’s safety or soundness. [Read more]

Source: Kingsley Napley

On January 15, 2016, the PRA published two Final Notices: one for Barry Tootell, former Chief Executive Officer of the Co-operative Bank Plc and another for Keith Alderson, former Managing Director of the bank’s Corporate and Business Banking Division. The PRA has prohibited both individuals from holding significant influence functions in a PRA-authorized firm on the basis that neither is fit and proper. The PRA found that both Mr. Tootell and Mr. Alderson had failed to exercise due skill, care and diligence (breach of Principle 6 of the Code of Practice for Approved Persons) between 2009 and 2013. In addition, both individuals had been knowingly concerned in the Co-operative Bank’s failure to take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems (contravention of Principle 3 of the Principles for Business). [Read more]

Source: Shearman & Sterling LLP

ESMA has migrated the data contained in the ESMA MiFID database portal and the ESMA webpage containing the list of exempted shares under the Short Selling Regulation to the global ESMA Registers portal. The migration relates to the following registers: (i) shares admitted to trading on EU regulated markets; (ii) exempted shares under the short selling legal framework; (iii) systematic internalisers; (iv) regulated markets; (v) multilateral trading facilities; and (vi) central counterparties (CCPs). To ensure a smooth transition, the data will be available in both portals from 1 February 2016 to 31 March 2016. On 1 April 2016, the old portal will be shut down and no longer accessible. [Read more]

Source: ESMA

ESMA is consulting on draft guidelines on market soundings and delayed disclosure of inside information under the Market Abuse Regulation (MAR). Section 2 of the consultation contains the draft guidelines for persons receiving market soundings and section 3 sets out the draft guidelines on legitimate interests and omissions likely to mislead the public. Comments are invited by 31 March 2016. ESMA is still preparing a consultation paper on a third set of guidelines required under MAR, relating to the information expected or required to be published in relation to commodity derivatives. MAR will apply across the EU from 3 July 2016. [Read More]

Source: Cumming’s Law

ESMA has published a Consultation Paper on the development of MiFIR guidelines. It is seeking views on the following areas: clock synchronisation, order record keeping, reference data and transaction reporting. Comments can be submitted up to 23 March 2016. [Read more]

Source: A&L Goodbody

ESMA has published Guidelines under MiFID II which seek to protect investors offered packages containing two or more financial products or services. The Guidelines address communications with investors, including in relation to disclosures when cross-selling, improving client understanding that purchasing individual products, as distinct from an entire package is possible and the provision of information to investors. The Guidelines also address conflicts of interest arising from remuneration models. [Read more]

Source: A&L Goodbody

The Market Abuse Regulation (MAR) comes into force on 3 July 2016 replacing our current market abuse regime. Whilst the text of the Regulation itself is settled, much of the detailed implementing measures are still in the process of being finalised. An important aspect of this concerns the amplification of provisions relating to inside information and insider dealing. In this respect, MAR tasked the European Securities and Markets Authority (ESMA) with developing guidelines. [Read more]

Source: Hogan Lovells