The FCA has published Feedback Statement 15/1 (FS15/1) which reports on the main issues arising from Discussion Paper 14/3: Discussion on the use of dealing commission regime (DP14/3), and sets out the next steps.

In FS15/1 the FCA provides:

  • a summary of the European Securities and Markets Authority’s (ESMA) final advice to the European Commission on proposals for delegated acts under MiFID II and the FCA’s views on it, including its interpretation of the likely implications of the changes if implemented by the Commission; and
  • feedback on the responses to the questions in DP14/3 that sought views on the FCA’s analysis of two options for change based on ESMA’s draft advice.

The FCA also sets out the next steps in the EU process for MiFID II and how it intends to implement the final legislation in the UK. The FCA’s preference is to make any further changes to its current use of the dealing commission rules through or alongside the implementation of the MiFID II reforms. However, the FCA will review its approach once the final details of the legislation are confirmed. The FCA will also consider the interaction with its existing requirements, for example it may need to consider the treatment of alternative investment fund manager and UCITS investment management activities.

The FCA also notes in FS15/1 what it expects from investment management firms in the intervening period between now and when MiFID II applies from 3 January 2017.

View FS15/1: Discussion on the use of dealing commission, 19 February 2015