31 January 2005

FT: Much MiFID detail yet to be sorted out

European Commissioner McCreevy has slowed down the timetable for implementing ambitious new legislation on the way financial markets work. Mr McCreevy announced this week that he would delay the timeframe for introducing Mifid – markets in financial instruments directive – for about a year. “It was pointed out by the industry the enormous difficulties in getting things in place in the timescale originally set out,” Mr McCreevy said.

Under the European Commission’s original plans, EU countries would have had to implement Mifid by April next year. However, only one country said it was confident it could comply by then. Investment firms were even more concerned about the need to update their IT systems to accommodate the new rules.

While the simplified EU decision-making process was meant to speed up the passage of legislation, some critics fear it has added another layer of complexity. Financial services companies suggest they have had to build an infrastructure just to deal with CESR consultations.

One of the concerns raised by many in the market is that the huge burden of consultation can mean some material issues are not spotted until too late.

Full FT article

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