Implementation of MiFID II and MiFIR in Norway – temporary regulations
Published: 3 November 2017
Document number: 14/2017
Finanstilsynet circulated for comment on 1 September 2017 draft regulations on certain rights and obligations corresponding to parts of the Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). The backdrop to the draft regulations was that MiFID II and MiFIR would not be incorporated in the EEA Agreement by 3 January 2018, which is the date of entry into force of MiFID II and MiFIR in the EU.
The draft regulations entail subjecting Norwegian investment firms and trading venues to many of the same requirements on business related to trading in financial instruments as those set out in the EU legislation. The object of mirroring central aspects of the EU legislation in this area is to provide a basis for Norwegian institutions to be treated on equal terms with institutions in the EU. Equal treatment is, however, dependent on the European Securities and Markets Authority (ESMA) adding Norwegian institutions to its lists of institutions that meet necessary requirements related to trading in an intermediate phase from 3 January 2018 until MIFID II/MIFIR are incorporated into the EEA Agreement.
Finanstilsynet will in the near future adopt the Norwegian regulations as announced. However, based on Finanstilsynet's contact with ESMA, much uncertainty relates to ESMA's assessment of the EEA legal basis for ESMA's treatment of Norwegian trading venues and investment firms.
Finanstilsynet will stay in close contact with ESMA to do what is possible to facilitate ESMA's treatment of Norwegian institutions on a par with institutions in the EU as regards the drawing up of lists of institutions that are compliant with the requirements on trading.