MiFID: UK – Industry update: 12 months till MiFID deadline.

Jonathan Williams, Clearconcepts

FSA releases crucial NEWCOB paper/Asset Management Industry benchmarking results released

There are 12 months until MiFID comes into effect in November 2007, and the remaining months are likely to be a testing time for firms across Europe. This paper examines the UK’s state of readiness for the directive and the impact of the latest European and British regulatory developments. In the UK, the Financial Services Authority (FSA) has just released draft changes to its conduct of business rulebook, titled NEWCOB. This has been largely driven by changes demanded by MiFID, but also represents the FSA’s shifting approach towards principles-based regulation, which will have an effect on how MiFID is regulated in practice in the UK. Concurrently, a recent benchmarking study of the asset management industry, commissioned by Microsoft and Lovells, and carried out by Clearconcepts looks at the industry’s state of readiness, assessing how firms have prepared for MiFID, their priorities for the coming months, which areas of the directive are their top concerns, and what work still needs to be done.