News and Views MiFID II Special Edition 2016

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Global Trustee and Fiduciary Services News and Views | MiFID II Special Edition 2016 53
• And onboarding fees for establishing technical
conformance with the FCA’s market data
processing (MDP) system for firms to submit
the data prescribed under MiFID II.
Draft rules are contained in Appendix 1 and
following consultation the FCA plans to publish
the final rules and provide feedback on the
responses received in a handbook notice (HN) or
policy statement (PS) in December so the rules
can take effect from 1 January 2017.
The second part of the chapter looks at
clarifying some fee issues that the FCA feels
does not require consultation:
• Update on earlier consultation: fees structure
for data reporting service providers (DRSPs).
• And application and VoP fees relating to MiFID II.
Under paragraph 10.18 of this chapter, the
FCA provides a summary table of application
and VoP fees by entity/activity, providing a
breakdown of what fees are proposed.
Next steps
The consultation period for CP16/19 will close for
responses on 28 October 2016 so anyone wishing
to respond still has time to make a submission.
Following CP15/43 in December 2015 and CP16/19,
there are still a range of issues that the FCA needs
to cover. It published a third CP (CP16/29) 18 on
28 September 2016 and plans to publish a further
paper before the end of 2016.
The FCA had also previously indicated that it
hoped to publish a Policy Statement (PS) on the
matters covered in CP15/43 in the first half of
2016. In CP16/29, it stated that it will publish a
single policy statement covering all aspects of
implementation in 2017.19
The Treasury consulted in March 2015 on MiFID II
implementation 20 and will also produce a policy
statement in due course before presenting the
legislation to Parliament.21
The Prudential Regulation Authority (PRA)
published its initial CP9/16 in March 2016, which
looked at passporting and algorithmic trading.22
The PRA will consult on the remainder of its
proposals in due course.
Amanda Hale
Head of Regulatory Services
Trustee and Fiduciary Services
Citi
1 See
papers/cp16-19.pdf, last downloaded on 4 August 2016.
2 See
papers/cp15-43.pdf, last downloaded on 4 August 2016.
3 “Persons” is defined in the FCA Glossary as “(in accordance
with the Interpretation Act 1978) any person, including a
body of persons corporate or unincorporate (that is, a natural
person, a legal person and, for example, a partnership).”
4 High-level position limits, management and reporting
requirements are in Articles 57 and 58 of MiFID II. RTS 21
contains details of the obligations on regulators in setting
position limits. Article 82 of the MiFID II implementing
regulation contains information on certain thresholds
linked to the weekly aggregated reporting of positions
published by ESMA. ITS 6 contains a format for daily and
weekly position reporting of certain types of commodity
derivatives, emission allowances and derivatives.
5 From
J:L:2006:241:0001:0025:EN:PDF, last downloaded on
4 August 2016.
6 From
ri=CELEX:32014R0600&from=EN, last accessed on
4 August 2016.
7
2016-4733-EN-F1-1.PDF, last accessed on 30 August 2016.
8 Which the FCA Glossary definition defines as having “the
meaning in IFPRU 1.1.11 R (Types of investment firm: IFPRU
730K firm) which in summary is an IFPRU investment firm
that is not a collective portfolio management investment
firm, a IFPRU 50k firm or a IFPRU 125k firm
9 From
?uri=CELEX:32013L0036&from=EN, last accessed on
4 August 2016.
10 L:2
013:321:0006:0342:EN:PDF, last downloaded on 4 August 2016.
11 The FCA will consider whether to consult on further
changes to the rest of the UCITS managers and alternative
investment fund managers’ business at a later stage.
12 See Table B of the draft instrument contained in CP16/19
for full details
13 See Table C of the draft instrument contained in CP16/19
14 From
library/2015/11/2012-388_en.pdf, last downloaded on
4 August 2016.
15 See
last downloaded on 4 August 2016.
16 See draft rules under SYSC 19F.1.1R for further details.
17 From
mifid/160407-delegated-directive_en.pdf, last accessed
on 4 August 2016.
18 See ,
last downloaded on 11 October 2016.
19 Aspects of what the FCA consulted on in CP15/43 depend
on the finalisation of legislation by HM Treasury.
20 From
uploads/attachment_data/file/418281/PU_1750_MiFID_
II_26.03.15.pdf, last accessed on 4 August 2016.
21 In the meantime, the proposals in CP16/19 are based on
the draft legislation in the Treasury’s March 2015 CP.
22 From
publications/cp/2016/cp916.pdf, last downloaded on
4 August 2016.