Jersey To Decide On MIFID II Equivalence In 2017
by Jason Gorringe, Lowtax.net, London
27 December, 2016
Jersey's financial services regulator, the Jersey Financial Services Commission, said it will take a decision on whether to pursue MiFID II equivalence in the first half of 2017.
MiFID is a European Union Directive that regulates the activities of financial service providers and market operators in respect of buying, selling, and issuing financial instruments, such as shares and bonds. MiFID II, which is considered an improvement on the MiFID I regime, strengthens consumer protection, increases market transparency, and raises the governance requirements for financial service providers and market operators.
The Commission issued a consultation paper in November 2016 on implementing a MiFID II equivalence regime and, based on the feedback received, said it will work with industry, the island's Government and other stakeholders in order to determine whether and, if so, how to pursue equivalence..
The Commission says it expects to be in a position to make a strategic decision on its approach in the first half of 2017. This strategic decision will determine what further work and consultation is necessary, but in any event the Commission has said it will set out the rationale behind its proposed approach.
The Commission has established a stakeholder working group, comprised of respondents to its consultation paper, which has begun to consider some of the key matters arising from the consultation process.
Irrespective of the final approach on MiFID II equivalence, the Commission said it expects to make a number of changes to the Codes of Practice applying to Investment Businesses in 2017.
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