Regulatory Timeline: Financial Services

“The financial services sector continues to see highly specialised embellishments and additions to existing bodies of law. The significance of the European super regulators increases each year, but the FCA and PRA still drive a distinct UK agenda, primarily under the banner of cultural change.”

5 – 8 October 2015 – New Payment Services Directive (PSD2) proposals

PSD2 introduces new payment services and abolishes a number of exemptions from scope. Conduct of business requirements will be amended for: safeguarding, small payment institutions, PI liability and security. The new measures are to come into effect in 2017. 

1 January 2016 – European Commission to declare date when passports for non-EU AIFs and AIFMS may become available

The Commission is considering ESMA’s advice (ESMA/2015/1236) on six jurisdictions. No obstacles have been identified for passports to the Channel Islands and Switzerland, but more work is needed on Hong Kong, Singapore and the US. 

7 March 2016 – Senior Managers Regime comes into force 

The Senior Managers Regime (rules published by the FCA and PRA in July 2015) replaces the approved persons regime for banks (with similar proposals for insurers and asset managers) and introduces new conduct rules. It affects the HR processes for appraisals, references and training. 

21 March 2016 – Member States to transpose the Mortgage Credit Directive into national legislation 

The Mortgage Credit Directive will extend to some buy-to-let mortgages and second charge lending, unlike the current regulation of Regulated Mortgage Contracts, and impose new product disclosure requirements. 

3 July 2016 – The Market Abuse Regulation (Regulation 596/2014) and the Directive on Criminal Sanctions for Market Abuse (2014/57/EU) come into force

The MAR and CSMAD will supplement the EU market abuse regime, with more varied and tougher sanctions. Article 39(2) of MAR lists certain provisions that have applied from 2 July 2014. The instruments covered will increase in 2017 with the implementation of MiFID II. 

3 July 2016 – Deadline for Member States to adopt and publish implementing measures of the MiFID II Directive (2014/64/EU)

This is the deadline for Member State publication of national law implementing the MiFID II Directive. Those provisions do not become binding on firms until 3 January 2017. 

3 January 2017 – MiFiD II to apply 

The MiFID II proposals (consisting of the MiFID II Directive and the Markets in Financial Instruments Regulation (Regulation 600/2014) amend the Markets in Financial Instruments Directive (2004/39/EC), with a focus on increasing market transparency and protecting the integrity of the financial system and investors.

1 July 2017 – The provisions of the Insurance Mediation Directive II (also known as the Insurance Distribution Directive or the ‘IDD’) come into force 

IMD 2 will affect around one million firms. IMD 2 increases IMD’s scope and introduces: disclosure requirements for suppliers selling bundled products; rules for higher risk packaged retail investment products, dispute resolution, conflict of interest, professional qualifications; and new sanctions.