So we finally know.....MiFID II has been delayed by a year to 2018!! The European Commission has finally acted on growing pressure about the financial industry’s lack of readiness to adopt the further regulatory requirements.
"This is to take account of the exceptional technical implementation challenges faced by regulators and market participants," the Commission said earlier today.
The decision itself was assumed to be a formality following a warning by the European Securities and Markets Authority (ESMA) at the end of January and that the regulators would not have the necessary systems in place to effectively implement the requirements by the 2017 deadline.
ESMA will have to build data exchange systems with over 300 trading centres offering 15 million financial instruments in order to apply the regulation.
Jonathan Hill, Commissioner for Financial Services, Financial Stability and Capital Markets Union, said:
"Given the complexity of the technical challenges highlighted by ESMA, 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.”
MiFID II is set to change the landscape of the banking world for good and with that in mind; demand for talented individuals to work on large scale regulatory change programmes is set to increase. The banks still face a race against time to get everything in place and as a result, need to mobilise their regulatory Change teams sooner rather than later. Watch this space!!