Scanning No.1

Q1-Q2 2015: Delivery of ESMA advice, RTS and ITS to the European Commission; Q2 2015: Drafting of Delegated acts by the Euro- pean Commission; Q2 2016: Transposition in national laws; Q4 2016: Application of new rules for firms in scope. THE TEXT OF THE REGULATION IS AVAILABLE HERE. Commission request for advice to ESMA on delegated acts for MiFID II and MiFIR Background MiFID II and MiFIR have been adopted by the EU Parliament on 15 April 2014. This Regulation and this Directive are meant to improve the efficiency of financial markets, and improve investor protec- tion while keeping pace with technological devel- opments. What’s in there? On 23 April 2014, the Commission published a request to ESMA for technical advice on possible delegated acts and implementing acts concerning MiFID II and MIFIR. The EU Commission, in order to adopt delegated acts in accordance with MiFID II and MiFIR, is seeking ESMA’s advice on various technical is- sues, namely: « Clarify when an activity is exempted for persons providing an investment service in an incidental manner in the course of a regulated activity; « Specify the notion of derivatives contracts relat- ing to commodities that can be physically settled THE TEXT OF THE DIRECTIVE IS AVAILABLE HERE.

and are traded on an organised Trading Facility (OTF) as financial instruments in respect of whole- sale energy products; « Provide advice on adjustments to the definitions of investment advice, money market instru- ments, systematic internaliser, algorithmic trad- ing, direct electronic access; « Provide advice on organisational requirements, and more specifically on the compliance func- tion and on the handling of complaints; « Provide advice on the effective organisation- al requirements that firms need to establish to maintain full compliance with the telephone recordings and electronic communications re- quirements; « Provide advice on future requirements concern- ing the provision and content of information to clients, including investment advice and the suit- ability test; « Provide advice on the possibility for investment firms providing investment advice on an inde- pendent basis and portfolio management, to receive third-party payments and benefits ("in- ducements"); « Provide technical advice on requirements to be complied with by investment firms providing investment advice on an independent basis, among others. ESMA is invited to consult stakeholders on these matters. What’s next? Delegated acts to be adopted by the Commission will enter into force 30 months after the entry into force of MiFID II and MiFIR, which is expected to be in June 2014. The date of application of the Directive and of the Regulation is expected to be 30 months after their entry into force. ESMA should provide its technical advice by the end of the year 2014. YOU WILL FIND THE COMMISSION DOCUMENT HERE.

The FSB and the IOSCO issued response to consultation on shadow banking Background

The FSB and the IOSCO published on 8 January 2014 a consultation paper on the assessment methodologies for identifying non-bank non-insur- er ("NBNI") global systemically important financial institutions ("SIFIs"). The new SIFI framework that to date only covers banks and insurers would be extended to all other financial institutions. On 7 April 2014, ALFI responded to the consultation. The consultation closed on 7 April 2014. What’s in there? IOSCO published on 25 April 2014 together with the FSB the responses to the FSB-IOSCO consul- tation from 8 January 2014, on the assessment methodologies for identifying non-bank non-insur- er ("NBNI") global systemically important financial institutions ("SIFIs"). Forty-seven comment letters were posted. What’s next? The FSB and the IOSCO will develop within the SIFI framework the incremental policy measures need- ed to address the systemic risks posed by NBNI SIFIs, once the identification methodologies have been finalised and published. You will find the responses to the consultation here. BELGIUM Changes of Belgian law relating to UCITS Background A Belgian law concerning several modifications dated April 25th, 2014, was published in the Bel- gian Official Gazette on May 7th, 2014. What’s in there? This Belgian law contains modifications of several Belgian laws, and in particular the law of 3 August

page 4 - Scanning - June 2014