The European Commission has published its proposal wherein the implementation date for the measures under the revised Markets in Financial Instruments Directive (“MiFID II”) has been pushed back 12 months. Should both the European Parliament and Council approve the proposal, investment firms will have until 3 January 2018 to implement the changes to their processes, procedures and documents. The announcement came as no surprise, as the possibility of a 12-month delay had already been mooted in November 2015.
The European Commission was informed by ESMA that neither competent authorities, nor market participants, would have the necessary systems ready by 3 January 2017, the date by which the MiFID II package was initially scheduled to become operational. In light of these circumstances and in order to avoid potential market disruption, an extension was deemed necessary.
The delay is being effected on the entire package of MiFID II measures. Initially there was a suggestion that there could be a phased introduction with some provisions still being required to be implemented by January 2017. However, the European Commission has confirmed that this is no longer being contemplated and that the delay will apply to all MiFID II legislation.
The 12 month extension will not have an impact on the timeline for adoption of the 'Level II' implementing measures under MiFID II/MiFIR. The European Commission will proceed with their adoption irrespective of the new date of entry into application of MiFID II.