CESR second Consultation Paper on first set of mandates for MiFID

17 November 2004




CESR publishes its second consultation paper on its draft advice to the European Commission regarding the possible technical measures to implement the proposed Markets in Financial Instruments Directive (MIFID) which revises the existing Investment Services Directive (ISD).

The consultation paper covers the following aspects:

  • The independence of compliance;
  • Record keeping and the burden of proof;
  • A requirement to keep tape records;
  • Outsourcing of investment services;
  • Conflicts of interest and the segregation of areas of business;
  • Investment research;
  • Methods and arrangements for reporting financial transactions;
  • Most relevant market in terms of liquidity;
  • The minimum content and the common standard or format of the reports to facilitate its exchange between competent authorities.

    Consultation closes on 17 December 2004.

    On 17 June 2004 CESR published its first consultation paper on the first set of mandates. The public consultation closed on 17 September, except for mandates on best execution and market transparency. The deadline for these mandates has been postponed to end of April 2005. A feedback statement will be published together with the final approval of CESR advice.

    To respond to the provisional mandates for technical advice CESR has established three Expert Group:

  • the first covering market issues;
  • the second covering ‘intermediaries’ issues and
  • the third to focus on co-operation and enforcement issues.

    A steering group has also been established to consider horizontal issues and to ensure overall consistency in the advice prepared by each expert group. The group consists of the three chairmen of the experts groups and chaired by CESR’s Chairman, Arthur Docters Van Leeuwen.

    A consultative Working Group of market participants has also been appointed to provide technical advice to all three expert groups. The market participants are experts drawn from across the European Markets. They are not intended to represent national or a specific firms’ interest and do not replace the important process of full consultation with all market participants.

    Document

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