On 5 October 2016, the European Securities and Markets Authority (ESMA) issued a consultation paper on draft guidelines which will further detail the implementation of the Market in Financial Instruments Directive (MIFID II).

The guidelines provide draft provisions management bodies of market operators and data reporting services providers will have to apply once MiFID II has entered into force.

Those MiFID II requirements aim to ensure that the management body and each of its individual members are suitable to ensure sound and prudent management of the firms as well as exercise effective responsibility for the activities undertaken by those firms.

This consultation is closely linked to the consultation paper on Joint EBA-ESMA Guidelines on the assessment of suitability of members of management bodies and key function holders under CRD IV and MiFID II, which will be published shortly. The ESMA consultation is open for comments by 5 January 2017 with a view to finalising the guidelines and publishing a final report in the first half of 2017.

For more information on MiFID Firms click here.