MiFID II meets ESG and EU regulation

Tight time frame

Market participants may have thought MiFID II was firmly in their rear-view mirror. With many firms coming to grips with their preparation for SFDR and taxonomy regulations, the delay in implementation has given firms more time to comply with the disclosure requirements under these new regulations.

But ESG regulatory complacency is unwise at this time. Why? The implementation of MiFID II, involving customer preferences for ESG, is due. The EU's landmark regulation, the Regulation on Markets in Financial Instruments (commonly referred to as MiFID II/MiFIR) entered into force on 3 January 2018. This legislative framework aims to strengthen investor protection and to improve the functioning of financial markets making them more efficient, resilient and transparent. However, it has thrown up a range of operational and governance challenges over the years, and while data firms aim to ad...