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Mifid, Uncategorized

MiFID II enforcement

With just over 3 months to go until the start of MiFID II, many companies are struggling to meet the deadlines (see here). Those who will require authorisation or a variation of permissions under MiFID II, have a great deal to prepare before that date. However, non investment firms such as energy and commodity traders still have compliance activity to undertake, which includes being within the position limits regime (see here), performing an Ancillary Activity test to ensure exemption (if the test is failed, authorisation may be required), and also ensuring that no other “regulated activity” is taking place which may require authorisation.

This article on the Reuters web site quotes  Mark Steward of the UK’s Financial Conduct Authority, stating that if firms have put in their best efforts to comply, some leniency may be shown in the event that compliance is not yet ready. However those who have not shown the right level of commitment to readiness may not receive such leniency. The FCA also issued a notice reminding companies who will not be authorised in time that they may need to make alternative provisions (see here).

The message would therefore appear to be to press ahead with readiness to a company’s best ability.


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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