MiFID 2: Third-Country Firms

The MiFID 2 package takes effect (with a few exceptions) from 3 January 2017. We still await key technical measures. Following ESMA's discussion, consultation and advice papers last year, it has now started to publish final drafts of key Implementing and Regulatory Technical Standards (ITS and RTS) for the Commission to approve. In this factsheet we look at MiFID 2's requirements and ESMA's Final Report on third-country firms, published on 29 June 2015.

The Level 1 text

Currently, MiFID gives Member States discretion about whether, and if so under what conditions, firms from outside the EEA (third-country firms) can operate in their territories. Its only requirement is that national legislation cannot treat third- country firms more favourably than firms from within the EEA.