FSA publishes MiFID permissions and notifications guide

The FSA published its MiFID permissions and notifications guide (Guide) on 22 May 2007. The Guide is intended to help firms understand what MIFID-related notifications and applications they need to make before 1 November 2007. Firms that take the actions in the Guide by the specified deadlines should be able to operate within the scope of their authorisation and in compliance with the relevant rules from 1 November 2007 onwards.

The FSA plans to make full use of the transitional arrangements and administrative provisions that have been put in place. The FSA should be able to make many amendments to firms' permissions and passport notifications automatically. However, firms may still need to take some action, either because automatic mapping is not possible or the results of automatic mapping are undesirable.

The Guide sets out the dates applications and notifications must be submitted to the FSA and the forms to be used. In many cases, the deadline is 1 August 2007. However, the FSA is asking firms to take action sooner in some cases. For example, firms that want to carry on MiFID business from branches in member states where they currently have no branches will need to notify the FSA by 31 May 2007!

Some parts of the Guide, such as the chapters on client categorisation and waivers, are relevant not just to MiFID firms, but to non-MiFID firms as well as UK branches of non-EEA firms. All firms carrying on business in the UK should review the Guide as a priority, identify which actions they need to take and build this into their MiFID implementation plans. Failure to do this could result, in the worst case, in business interruption and the risk of FSA disciplinary action from 1 November 2007.

For further information on MiFID, see Practice note, MiFID Resources.
PLC Financial Services


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