The Financial Conduct Authority released a draft consultation regarding MiFID II implementation. It requests views on the following topics:
- The extent to which the FCA should apply MiFID II provisions to insurance-based investment products and pensions.
- How the FCA should incorporate MiFID II’s investor protection measures for structured deposits into its Handbook.
- Whether the FCA should ban third party rebating for discretionary investment management firms.
- Options for the assessment of local authorities requesting to be treated as professional clients.
- Details on MiFID II’s approach to adviser independence, and how this could be implemented for advice on shares, bonds, derivatives and structured deposits.
- Whether and how the FCA might apply sales-staff remuneration rules to firms not covered by MiFID II, in light of domestic and European policy developments.
- How the FCA might apply recording of telephone conversations and electronic communications requirement to firms which fall within MiFID’s Article 3 exemption, which includes independent financial advisers and corporate finance boutiques; and whether to remove the current recording exemptions for discretionary investment managers in our domestic regime.
- How MiFID II’s requirements on costs and charges disclosure could be implemented practically.
- Exploring potential MiFID II inducement rules for advisers, discretionary investment managers and other firms.