Sixty Second Summary
MiFID II, July 2017 Update
13 Jul 2017 - Estimated reading time: 5 minutes
The Financial Conduct Authority ("FCA") has now issued its final policy statement setting out the rules for implementation of the Markets in Financial Instruments Directive ("MiFID II"), effective from 3 January 2018. A key change is that there is now greater clarity in the "opt-up" criteria that is expected to make it easier for local authorities administering LGPS pension funds to elect to be treated as "professional" (rather than "retail") clients.
We view it positively that the FCA’s final Policy Statement gives greater clarity regarding LGPS Funds and what actions must be taken for local authorities to be opted-up to professional status. We also understand that the LGA is developing a reporting template with the Investment Association that should simplify the opting-up process for investment managers. We are also discussing this matter to see if a similar approach can be adopted for investment advisors. We will be in touch in the near future regarding this matter.
In the meantime, we recommend that you make contact with your investment stakeholders to confirm their requirements for opting-up to professional.
To read our full summary, please download a copy of our 60 second summary.