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EU set to revise MiFID II following backlash

Regulation, complianceThe EU is considering making tweaks to its MiFID II market rules from next year following criticisms from banks, investors and regulators, according to a report in the Financial Times.

The article states that the European Commission is examining “targeted, technical changes on issues such as the cost and distribution of market data, investor protection rules and research for small companies”.

The move follows criticism from asset managers and banks who claim that the legislation, introduced in January 2018, significantly raised costs for the industry but has failed to produce the intended benefits for consumers – such as greater protection for investors, increased transparency and improved competition.

“No decision has been taken so far on the review of MiFID II, although the Commission acknowledges that some adjustments may be required,” a Commission spokesperson said.

MiFID II, which has been criticised for its complexity, took seven years of negotiation and consultation before coming into effect and consists of more than 1.7 million paragraphs of text.

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