MiFID, MiFIR: How would you like your review? Targeted or broad?

ABBL Published 06.03.2020

On 17 February the European Commission launched a public consultation to gather stake-holders views on MiFID/MiFIR. Indeed, MiFID/R 2 included revision clauses triggering a re-consideration of certain aspects of MiFID/R. The European Commission is due to present a report and proposals for review to the co-legislators in Q3 2020. This report will also include the conclusions of the consultations carried out by ESMA on the functioning of certain aspects of the MiFID/R framework.

According to the EU Commission, MiFID and MiFIR support the objectives of the CMU, the digital finance agenda and the sustainable finance agenda. The current consultation includes two types of questions:

  • General questions dedicated to the scope and the timeline of the review. i.e. should the review take place in different steps, including one targeted review in the coming months and a broader one in the future. Also questions on the general assessment of the MiFID framework.
  • Technical questions, including an EU consolidated tape, investor protection, creation of a new category of semi-professionals clients, product governance, inducements, distance/digital marketing and selling, research unbundling rules and SME research coverage, commodity markets, derivatives trading obligation and double volume cap.

The consultation is open until 20 April.

The Commission has chosen an 8 week consultation period in order to speed up the review, and will possibly publish a proposal before the summer break (if not after). As of 1 July the presidency of the Council will be held by Germany, which is very keen to see a MiFID review, and has advocated for it publicly for over a year. That being said, a review of the MiFID framework (unless very limited and targeted, hence the first question posed by the European Commission) is unlikely to be dealt with by the Parliament or the Council in half a year (the duration of a presidency of the Council). A number of MiFID/R related issued are highly technical and/or political, in particular in the Brexit context, therefore the co-legislators are likely to be busy with this topic for quite some time.

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