The European Commission has extended the deadline for member states to comply with Mifid II due to the “exceptional” challenges firms and regulators face in preparing for the new rules.
The move, which was widely expected, pushes the implementation date back from next January to 3 January 2018.
The Mifid II rules include a requirement to disclose all charges relating to a product to investors upfront, a different independence definition to the UK and tougher inducements rules. The FCA was due to issue its Mifid II policy statement in June.
The European Commission says it has taken this decision in light of the “exceptional technical implementation challenges faced by regulators and market participants”.
European Commissioner for financial services, financial stability and capital markets Jonathan Hill says: “Given the complexity of the technical challenges highlighted by European Securities and Markets Authority, it makes sense to extend the deadline for Mifid II.
“We will therefore give people another year to prepare properly and make the necessary changes to their systems. Meanwhile, we are pressing ahead with the level II legislation to implement Mifid II and expect to announce those measures shortly.”
Last week Esma chair Steven Maijoor said a 12-month delay to Mifid II may still not be enough time to allow the industry to prepare.