On Thursday 20th February, the European Association of Cooperative Banks (EACB) organised a breakfast discussion at the European Parliament on the topic of “MiFID II review: Towards a more effective framework respecting diversity and consumer choice". As part of the event, which was hosted by MEP Markus Ferber, the EACB published a set of documents outlining what it sees as the most important issues to be addressed in the upcoming review of MiFID II/ MiFIR.
The EACB's proposals are based on a MIFID II impact assessment conducted by the EACB and its members between June and November 2019. The conclusion of this assessment is that in several areas MIFID II has created unintended side effects such as retail clients withdrawing from capital markets and a decrease in supply of investment services and products. Indeed, in some cases it has led to cooperative banks withdrawing from offering investment services. The document contains a list of general recommendations on scope, timelines, consistency with other pieces of legislation and the relationship between level 1 and level 2 legislation but also goes into more detailed technical recommendations.
Hervé Guider, Managing Director of the EACB said : “MiFID II was a positive step in support of the Commission’s vision for an integrated EU capital markets union. The reality however has shown some shortcomings. Whilst we still very much support what MIFID II aimed to achieve, we believe a targeted, REFIT type review of the directive and its regulation are necessary to create a more effective legal framework that promotes diversity on the supply side and consumer choice."