What is MiFID passporting?

MiFID. Passporting enables firms that are authorised in any EU or EEA state to trade freely in any other with minimal additional authorisation. These passports are the foundation of the EU single market for financial services.

What is a Passporting case?

Passporting is a term used in the context of financial services. For members of the EU single market it means that if a firm is authorised to undertake certain activities by the regulator of one EU member state, it can apply for a ‘passport’ to do business throughout the EU without needing further authorisation.

Does MiFID II apply to Monaco?

MiFID II will apply in Monaco following its implementation in France on 3 January 2018 (reference texts: Ordinance 5.713 dated 8 February 2016 modifying the annexes of the Monetary Treaty dated 29 November 2011 entered into between the Principality of Monaco and the European Union).

Who is covered by MiFID?

Preparations for MiFID II cost firms an estimated total of $2.1 billion, according to a report by Expand, a Boston Consulting Group company, and IHS Markit. MiFID II not only covers virtually all aspects of financial investment and trading but also covers virtually all financial professionals within the EU.

Does Passport continue after Brexit?

Passporting rights will continue for firms operating between the UK and Gibraltar. Statutory Instrument (SI) 2019/589 Opens in a new window established transitional arrangements for Gibraltar that will preserve the status quo of deemed-passporting for Gibraltarian firms after the end of the Transition Period.

What is MiFID regulations?

The Markets in Financial Instruments Directive (MiFID) is a European regulation that increases the transparency across the European Union’s financial markets and standardizes the regulatory disclosures required for firms operating in the European Union. MiFID has a defined scope that primarily focuses on stocks.

Does the UK still have passporting rights?

UK joins the EEA – full EEA-wide market access As an EEA member state, financial institutions established in the UK and in other EEA member states would continue to enjoy full passporting rights and to be able to establish a branch and/or conduct business on a cross-border basis in all EEA member states.

Does passport continue after Brexit?

Who is exempt from MiFID?

Yes, there is an exemption in article 2(1)(f) MiFID for persons providing investment services consisting exclusively in the administration of employee-participation schemes, for example employee share schemes and company pension schemes.

What are the MiFID 2 requirements?

The main objectives of MiFID II include the pursuit of harmonised regulation across EU financial markets, increased competition between EU financial markets, ensuring appropriate levels of investor protection, and strengthening of supervisory powers. This paper provides a summary of the key aspects of MiFID II.

Will MiFID 2 apply after Brexit?

On 28 April 2021, the FCA published a consultation paper (CP) setting out a number of potential changes to MiFID derived rules in the UK; specifically in relation to investment research and best execution reporting requirements.

Which countries does MiFID II apply to?

The list of members who have fully transposed MiFID II includes the UK, Cyprus, Germany and Italy, while those who have not communicated transposition status include Malta, the Netherlands and Bulgaria.

How does the MiFID directive affect the UK?

in Financial Instruments Directive (MiFID)1to provide its services in other Member States of the European Economic Area (EEA). The loss of the passport would therefore have a profound effect on financial institutions based in the UK. Unless the UK becomes a member of the EEA along the lines of Norway or otherwise retains access to the single

What happens if the UK loses its MiFID passport?

A significant part of the UK’s financial services industry relies on the passport under the Markets in Financial Instruments Directive (MiFID)1to provide its services in other Member States of the European Economic Area (EEA). The loss of the passport would therefore have a profound effect on financial institutions based in the UK.

What are the EU Single Market directives for passporting?

Passporting rights arise under the EU single market directives, which include IMD and MiFID. into another EEA State, as long as they fulfil the conditions in the relevant directive.

Can a MiFID passport be used in the EEA?

EEA states the right to use a modified version of the MiFID passport to offer their services in the EEA provided that their home jurisdiction is deemed MiFID equivalent. Depending on the final timing and terms of Brexit, financial institutions in the UK may therefore ultimately find themselves able to use the MiFID passport. What is the MiFID