JERSEY: FSC issues consultation paper on MiFID II equivalence for Jersey

Tuesday April 26 2016

The Jersey Financial Services Commission (FSC) has published a Consultation Paper on whether to introduce a MiFID II equivalent regime for Jersey’s investment businesses. The paper describes the regulatory changes that may be necessary for Jersey to demonstrate equivalence.

Factors to consider when assessing the benefits of equivalence for Jersey would be:

• opportunities for Registered Persons to passport their services to professional investors across Europe without the need for authorisation form EU Member States
• MiFID II provides a kite mark of recognition for Jersey’s financial sector

Other factors that may influence the considerations are:

• potential costs for the FSC, Government and Registered Persons to develop and implement MiFIF II equivalence
• the requirement for authorisation for previously exempt activities

If MiFID II equivalence is sought then changes in Jersey’s financial services legislation will be required, as well as to the FSC’s Codes of Practice.

The assessment of non-EU jurisdictional equivalence would be conducted by the European Commission.

The closing date for receipt of responses by the FSC is 22nd July 2016.

Click on the above link for further details.