FSA Timetable Adjusts to MiFID Schedule

In an effort to follow the European Commission's MiFID timetable, the Financial Securities Authority has established a schedule for its consultation program.

The FSA will publish a consultation paper in the second quarter of this year on systems and controls, setting out a single body of requirements in this area arising from both the Capital Requirements Directive (CRD) and MiFID.

A consultation paper in the third quarter will cover provisions on market transparency, transaction reporting, authorization and permissions, and enforcement and cooperation, but will exclude conduct of business and financial promotions.

A fourth-quarter consultation paper will deal with the MiFID conduct of business aspects, along with other consequential changes, including impacts on business outside the MiFID scope. The consultation paper will reflect the new approach arising from the FSA's Conduct of Business (COB) Simplification work and set the MiFID related changes in the context of the new COB sourcebook. There will be a short deadline for comment on those provisions necessary to meet transposition date of 31 January 2007, but a longer period of consideration of the broader structure and content of the new COB sourcebook.

A consultation paper will be published in the fourth quarter covering MiFID provisions on marketing communications, within wider changes from the FSA's financial promotions review.

FSA Timetable on MiFID

- February 2006. The European Commission's formal proposals on Level 2

- March 2006. HM Treasury consultation paper (CP) closes

- Q2 2006. Publication of the FSA's systems and controls CP (covering requirements arising from MiFID and CRD)

- Q3 2006. Publication of the FSA's MiFID CP (covering MiFID provisions on markets transparency, transaction reporting, authorisation and permissions and enforcement and cooperation - but excluding conduct of business and financial promotions).

- June 2006. Vote of the ESC on Level 2 and adoption of the final Level 2 measures

- Q4 2006. Publication of the FSA's MiFID CP (covering MiFID conduct of business provisions and other consequential changes, including impact on business outside MiFID's scope. Reflecting the new approach to our Conduct of Business sourcebook as laid out in CP 05/10)

- Q4 2006. Publication of FSA's Financial Promotions CP (covering MiFID provisions on marketing communications, with wider changes flowing from our financial promotions review)

- May 2006. FSA's conference on MiFID implementation

- January 2007. Transposition date

- November 2007. Implementation date.

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