Businesses which failed to meet the July deadline to apply for Mifid II authorisations may not face ‘strict liability’ if they can prove that they are working toward compliance, the Financial Conduct Authority has said.
‘We will not take a strict liability approach especially given the size, complexity and magnitude of the changes that are required to be in place,’ said Mark Steward, executive director of enforcement and market oversight for the FCA.
‘We are very aware of how much work many firms have been engaged in for a very long time now in re-tooling and preparing for next year.
‘This means we have no intention of taking enforcement action against firms for not meeting all requirements straight away where there is evidence they have taken sufficient steps to meet the new obligations by the start-date, 3 January 2018.’
Steward delivered his comments in a speech to the Association of Financial Markets in Europe conference.