On 11 May 2020, the European Commission hosted a meeting of the Expert Group of European Securities Committee (EGESC), which is composed of Member States experts. One of the agenda items was initial considerations and exchange of views whether any urgent amendments to the Markets in Financial Instruments Directive (MiFID II) are required in the context of COVID-19. If proposed, any such amendments would be proceeded in parallel to a broader and scheduled review of MiFID II and the Markets in Financial Instruments Regulation (MiFIR) that is currently under way – the European Commission consultation is open until 18 May 2020.
In respect of any “quick fix” amendments, we understand that these would be mainly focused on investor protection issues. To this end, feedback from the meeting indicates that issues for review might include MiFID II provisions on cost and charges disclosures, suitability assessments, telephone recordings, but also product governance and best execution. While the timing of publication of any such legislative proposal remains unclear, we understand that it might take place as soon as before the end of June.