MiFID 2 RAO amendments made

The FSMA (Regulated Activities) (Amendment) Order 2017 has been made.  It makes several amendments to FSMA and secondary legislation, primarily the RAO, as part of the UK’s implementation of MiFID 2. Key provisions:

  • enable applications for authorisations or variations of permission that relate to MiFID 2 changes to be made and determined from 1 April. The appropriate regulator has to determine all complete applications received before 3 July by 3 January 2018;
  • update various defined terms and references to reflect MiFID 2;
  • introduce the new regulated activity of operating an OTF;
  • applying the regulated activities of dealing as agent, arranging, managing and advising to structured deposits, and providing that an authorised person with appropriate permissions who notifies the regulator before 3 January 2018 of their intention to carry on permitted activities relating to structured deposits will automatically be considered to have the permission after 3 January. Further changes add structured deposit-related activities to those which appointed representatives can carry out;
  • amending the overseas persons exclusion to reflect activities carried out under a MiFID 2 equivalence regime;
  • inserting a new investment type of emission allowances and making amendments to the definitions of the derivatives categories of investment; and
  • including in annexes key extracts from EU measures setting the scope of certain expressions.