FSA Gives Qualified Support to MiFID II, Concerns Remain
Date: 31 January 2012
Source: FSA
The Financial Services Authority (FSA) has given its support to a number of the initiatives contained in the European Commission’s MiFID II proposals, while highlighting a number of issues which the FSA considers to be problematic. This speech indicates concerns that pre-trade transparency requirements may damage liquidity if not calibrated properly, and suggests a phase-in approach based on product markets. Further, it suggests that there are problems with the “piecemeal” division of the Packaged Retail Investment Products (PRIPs) initiative between MiFID II and the Insurance Mediation Directive, which may lead to diverging standards, and commits the FSA to pushing for more consistency in retail investment. In addition to this, it highlights concerns that third country access restrictions may hurt investor choice and competition, and may cause EU firms to be denied access to third country markets. The speech comes three months after the Commission published its proposals, and as the texts work their way through the European Parliament for amendment.