November 25, 2016
The Prudential Regulation Authority (PRA) published today the second PRA consultation on implementing MiFID II, and follows CP9/16 ‘Implementation of MiFID II: Part 1’, which consulted on implementation of the MiFID II passporting regime and algorithmic trading. The final rules following CP9/16 were published in Policy Statement 29/16.
This CP includes proposals to enhance governance through MiFID II management body requirements and key organisational requirements which will apply to MiFID and non-MiFID business. The PRA also sets out proposals for granting authorisations in respect of a new MiFID investment activity, ‘operation of an organised trading facility (OTF)’, a new MiFID financial instrument ‘emission allowances’ and structured deposits. The power for the PRA to accept applications from firms for these permissions in advance of 3 January 2018 may be granted by HM Treasury (HMT) in a statutory instrument. If the PRA is granted this power, the PRA proposes that firms would be able to apply for permissions in advance of 3 January 2018.
Feedback must be received before Monday 27th February 2017. Responses can be submitted using this to CP43_16@bankofengland.co.uk.
Information on the consultation paper can be found on the ESMA website here.