The Financial Conduct Authority (FCA) has announced that the EU-referendum result won’t halt MiFID II in the UK, meaning financial services product and advice providers have to continue their preparations.
The FCA has announced the publication of its second consultation paper on implementing the MiFID II regulation in the UK. MiFID II will take effect on January 3, 2018, after a year’s delay, and will have a strong impact on the financial advice, product, and service landscape across the EU.
Following the EU referendum vote, the FCA highlighted that firms should continue to work with implementation plans for legislation that is yet to come into force. The press release accompanying the consultation paper further stresses this, and highlights the relevance of MiFID II in terms of improving investor protection as well as reflecting recent regulatory themes within UK financial services.
Financial advisors are conscious of the changing regulatory landscape and MiFID II looming ahead. According to our 2015 Independent Financial Advisor (IFA) Survey, 56.5% of UK IFAs believe adapting to new national regulations is an important factor facing the financial advice space over the next two years. Against this backdrop, it is unsurprising that financial advisors value the opportunity of keeping up with regulation and the support investment product providers can offer in this.
While MiFID II will go ahead, it is likely that going forward Brexit will make things more complicated as regulators will have to adjust to the post-EU world, as well as deciding which EU regulations to adhere to and which to forgo while outside the union. Any support product providers can offer advisors in staying informed of new regulations will be welcomed.
By Katri Tuomainen, Wealth Management Analyst