James Phillips Lombard Risk Global Head of Regulatory Strategy
James Phillips Lombard Risk Global Head of Regulatory Strategy

The question of MiFID II post Brexit - A UK perspective

James Phillips, Lombard Risk Global Head of Regulatory Strategy discusses the impact of Brexit on the application of MiFID reforms to UK based trading fi rms.

Bottom Line: Why Brexit does not eliminate the need for MiFID II reforms MiFID II applies from 3rd January 2018, which is before any possible date that EU law ceases to apply in UK, on Exit-Day, “E-Day”.  There will be at least a year (or two) of full scale European-Union style MiFID II.  We can ask if there would there be any softening of the requirements because of the short-term nature of the EU law tenure.  We can ask this question, but it begs another question of why MiFID II exists in the first place.  What if there was no EU, would there still be a set of reforms that looked like MiFID II, even though they would have a local name?  Yes!  The reasons are that MiFID II has a strong rationale come what may: the regulation was created to provide various market protections, and has been significantly guided by the UK regulators anyway.  One could ask if a rules framework around speculative investments by non-financial firms, improved disclosures,...continued

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