The UK’s Financial Conduct Authority have today issued this reminder that applications to either become an Investment Firm, or an appropriate Variation of Permissions, should be submitted by 3rd July 2017 in order to ensure that the appropriate approvals are in place by 3rd January 2018.

Those in energy and commodities may be required to obtain such authorisation if they either do not pass the “Ancillary Activity” test according to MiFID Article 2(1)j and specified in RTS 20, or wish to undertake “regulated activity”(see here). However, the Ancillary Activity test contains a requirement to use data which goes up to the end of 2017. There are also several outstanding questions. In some cases this could affect the results of the test, which could create issues if the application must be in by 3rd July.

The last Questions and Answers document on commodity derivatives (see here) included some guidance on the above scenarios. However, each market participant will need to form their own view on when and if to submit an application.

Those who remain exempt under Article 2(1)j must submit an exemption notification to their National Competent Authority by 3rd January 2018.