Brexit and MiFID IIFollowing the referendum in the UK, the implementation of MiFID II and associated legislation will unsurprisingly be called into question.

The Financial Conduct Authority has put out a statement to address this point, and although it does not name MiFID II explicitly it makes clear that any cur rent legislation remains in place unchanged and that future legislation will be implemented as scheduled.

The referendum result is unlikely to delay or halt the implementation of MiFID II for three reasons:

1. Any triggering of Ar ticle 50 to begin the UK’s exit from the EU initiates a formal two-year negotiation process. This process will continue beyond the implementation date of 3rd January 2018 for MiFID II and therefore will not impact the obligation for firms to abide by it.

2. MiFID II is based, in par t, on the G20 commitments and reform agenda stemming from the financial crisis. As a member of the G20, the UK is obliged to implement legislation to meet these commitments whether within the EU or not.

3. For the financial services industry to continue doing business in the EU following a Brexit, there must be ‘equivalency’ of legislation and regulation. This can be achieved by implementing MiFID II in its current form, or adopting UK regulation with at most de minimis deviation from EU regulation.

The FCA has confirmed that the objectives of MiFID II were consistent with the FCA’s reform agenda and that the UK political and regulatory regime still stands for the principles and objectives that the EU legislation was designed for.

Regardless of the referendum result, MiFID II will still be a signature piece of UK regulation – the directive provisions having being incorporated into the UK Statute Book and the regulation having direct effect.

Optimissa therefore recommends that firms should continue preparations for MiFID II, and we welcome engagement by any firms who may need assistance with their compliance programmes.

“Firms must continue to abide by their obligations under UK law, including those derived from EUlaw and continue with implementation plans for legislation that is still to come into effect.”

The purpose of this document is to provide information as to developments in the law. It does not contain a full analysis of the law nor does it constitute an opinion of any Optimissa Capital Markets Consulting entity on the points covered. It is intended to be a

general information resource and is provided solely on an ‘as is’ and ‘as available’ basis without any representation or endorsement made and without warranty of any kind whether express or implied, including but not limited to the implied warranties of satisfactory

quality, fitness for a par ticular purpose, non-infringement, compatibility, security and accuracy. You are encouraged to confirm the information contained herein as it is not tailored to address questions or points relevant to your specific business model. It is your

responsibility to check the accuracy of relevant facts and take appropriate professional advice before entering into any commitment based upon them.

Optimissa . Capital Markets Consulting . 35 New Broad St. . EC2M 1NH . London, United Kingdom . +44 (0)20 3009 3027 . london@optimissa.com

Tom EganGlobal Head, MiFID & Quality Assurance PracticeM: +44 (0) 7901 711380

E: tom.egan@optimissa.com

35 New Broad Street · London EC2M 1NH · +44 203 009 3027 35 New Broad Street · London EC2M 1NH · +44 203 009 3027

Phil WestwoodProject LeadM: +44 (0) 7802 482421

E: phil.westwood@optimissa.com