Is Brexit going to affect MiFID/MiFIR Implementation?

One of the hot questions dominating the city since the Brexit vote has certainly been “what is going to be the impact on the upcoming regulations”? MiFID was pushed back to January 2018 along with GDPR and PRiiPs, so there is a lot for businesses to think about not to mention getting projects off the ground and implemented without any further delays.

Depending on when Article 51 is triggered it is going to take 2 years’ minimum from that day for us to formally leave the EU. By this point we will have already implemented changes with regards to MiFID2/MiFIR (providing there are no more delays) as the earliest we could leave, per Mrs May, is March 2019?

After speaking with many professionals in my network about the impact the exit will have, it is becoming more apparent that the FCA are the leading force in driving MiFID2/MiFIR. So why would we change it if we are the ones in the UK that are behind them? Fundamentally, once it has passed fully it will become UK law as the difference between Regulation and Directive is very different. Once a Regulation (MiFIR) is passed in the EU court, it then has a binding legal force throughout every member state and comes into force on a set date for all Member States.

Now the directive (MiFID) lays down certain results that must be achieved, but each Member State is free to decide how to transpose said directive into national law via the FCA so it will, in fact, be law.

Also, why would the FCA or our Government want to remove a working directive/regulation that is driven by the UK and already in force? My feeling is that they will rename it but the nuts and bolts will be the same.

I feel for Financial Services due to the uncertainty surrounding what needs to be done. Decisions need to be made and they need to be sorted soon as business is investing heavily into change at present and answers are required otherwise more change is ahead.