A guide aimed at helping financial institutions come into compliance with a substantial and complex set of new European-wide regulatory standards is being developed by the Association of Private Client and Investment Managers, the European Federation of Energy Traders, the Futures and Options Association (FOA) and the Wholesale Market Brokers’ Association (WMBA).
The EU Regulation Implementation Handbook, slated to launch in August, will be a web-based guide covering the European Market Infrastructure Regulation; Markets in Financial Instruments Regulation/Directive (MIFIR/MIFID), Market Abuse Regulation/Directive and the related flow of standards and guidance being issued by the European Securities and Markets Authority.
The legal work will be carried out by law firm Clifford Chance which has been retained by the associations to develop the handbook and provide the updating service over an initial two-year term. Professional services firm KPMG will cover operational issues for companies using their services.
The Handbook will apply to all wholesale and retail market-facing products and services and will be kept up-to-date over an initial two-year term, and likely longer, to ensure the text is reliable and topical through the cycle of regulatory change.
As the rules become clearer and more detailed, it will be extended to include implementation checklists, action points and guidance on particular areas of difficulty. It will also be supported by a complementary series of implementation workshops on key areas of implementation.
While the trade associations will be responsible for governance of the project, the work will be supported by a practitioner advisory committee, which will be representative of the partnering trade associations and the business lines covered by them.
“Whether you are a small brokerage house struggling to implement the biggest regulatory change agenda for a generation or are a major investment bank, simply looking to check your own internal change programme, this Handbook, in covering the whole of the EU regulatory change agenda, should provide a valued benchmark for firms in terms of coming into compliance with all the new rules and required processes on a timely and comprehensive basis,” says Anthony Belchambers, CEO of FOA.
Alexander McDonald, CEO of WMBA, adds: “Given the complexities of the interactions of each of the new European legislations especially with their application in respect of other regulation coming into force outside the region, this standardised approach to implementation is welcome across the European financial services sector.”