Germany – BaFIN MiFID II Implementation

On 19 June, BaFin issued a statement on MiFID II implementation in Germany.

  • Second Financial Market Reform Act is due to be added to Federal Law Gazette soon.
  • Law will come into force largely on Jan. 3, and will align national rules with MiFID II.
  • Most of amendments relate to public-law framework for trading financial instruments.
  • But also add SFTR and BMR as well as enhanced transparency requirements of EMIR.
  • Introduces new categories of data providers; consolidated tape providers, APA, ARM.
  • Also adds new rules for limiting and monitoring positions in commodity derivatives.

U.S. SEC Issues FAQs for Form ADV

On Jun. 12, 2017, SEC issued FAQ on Form ADV related to Apr. 2016 final rule changes.

  • Do not report social media account, where an unaffiliated distributor controls content.
  • If another person pays your CCO, only report if paid for providing services to your firm.
  • Only report over $1bn in total assets if on adviser’s balance sheet, at last day year end.
  • Treat each wrap fee program participant for which provide advisory service, as a client.
  • Pooled investment vehicles include, but not limited to, private funds, e.g. UCITS in EU.
  • Borrowings on SMA include traditional lending, secured, synthetic borrowings e.g., TRS.
  • If custodian has 10% or SMA clients’ assets, do not report if they used a “sub-custodian”.
  • Withdrew Jan. 2012 relief to ABA on umbrella funds, as superseded by 2017 Form ADV.
  • Non-resident partner of relying adviser should file Form ADV-NR, even if resident in US.