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FCA issues authorisation warning

The UK’s Financial Conduct Authority has issued its second “MiFID II statement”, which warns those who require MiFID II authorisation, but who have not yet applied, to make appropriate arrangements in case their applications are not processed by the 3rd January 2018. The statement can be found here. It follows the first statement made in June, which can be found here.

The FCA has stated in the past that in order to ensure that applications are processed on time, they must be submitted by 3rd July 2017. This statement comes just over 3 weeks after this deadline. The statement refers to both those who are applying for the first time, and also those firms already authorised who require a Variation of Permissions to comply with MiFID II. The statement makes some reference  to the consequences of carrying out regulated activity without permission.

Those in energy and commodities who are either unable to make use of the Ancillary Activity exemption (see here), or who are carrying out other regulated activity, will require the appropriate permission. There is some reference to transitional arrangements in the case of those who discover that they cannot use the Ancillary Activity exemption in ESMA’s Commodity Derivatives Q+A (see here), although each local National Competent Authority will likely need to be consulted in the event that such an arrangement is required.

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on the regulation of the commodity, energy and financial markets. He has more than 23 years of experience in the financial, energy and commodity markets, covering regulatory compliance, credit, risk and financial technology. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy and Commodity Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.


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