2018年-FCA英国金融行为监管局_mifid_ii_taping_5页_347kb

Regulator Assessment Summary: Extending MiFID II Taping Requirements

Core Content

This assessment outlines the FCA's decision to extend the taping requirements under MiFID II to all firms operating in the UK, including those not previously subject to such obligations. The FCA has removed the exemption for Discretionary Investment Managers (DIMs) and now requires them to tape communications when placing or executing orders on behalf of clients, with records retained for five years. This change aligns UK requirements with the EU's MiFID II framework, which mandates taping for any relevant conversation intended to lead to a transaction, with a minimum record retention period of five years.

The FCA also requires UK branches of third country firms to comply with the same taping obligations, and applies the extended rules to Energy Market Participants (EMPs), Oil Market Participants (OMPs), and firms engaged in non-MiFID commodity and exotic derivatives business.

Main Viewpoints

• Purpose of Taping: To detect market abuse, ensure compliance with conduct of business rules, and assist in FCA investigations.
• Extension of Scope: The FCA has expanded the taping obligation to include DIMs, EMPs, OMPs, and third country firms, removing previous exemptions.
• Record Retention Period: The period has been extended from 6 months to 5 years, aligning with MiFID II.
• Impact on DIMs: Previously exempt DIMs now face significant compliance costs, both one-off and ongoing.
• Cost Considerations: The FCA has estimated the financial impact on firms, including initial setup, storage, and maintenance costs.

Key Information

• Lead Regulator: Financial Conduct Authority (FCA)
• Date of Assessment: 1 March 2018
• Commencement Date: 3 January 2018
• Scope: Applies to the whole of the UK
• Exemption Removal: DIMs are no longer exempt from taping requirements.
• Estimated Affected Firms:
  • Approximately 448 DIMs who do not already tape.
  • Around 596 DIMs who already tape.
  • Up to 20 EMPs/OMPs and 120 third country firms in the UK.

Costs and Benefits Breakdown

Costs

• One-off costs: Include setup of taping infrastructure (software, hardware, installation, and initial storage).
• Ongoing costs: Cover taping, storage, and retrieval of records, as well as maintenance and miscellaneous expenses.
• Storage costs: Estimated at £6 per user per year, assuming cloud storage.

Benefits

• Consumer and societal benefits: The FCA estimates that the changes will help resolve disputes faster and improve transparency, which should benefit consumers and society.
• Supervisory and enforcement support: Tapes will assist the FCA in investigating market abuse and misconduct.
• Internal monitoring: DIMs will benefit from better internal oversight of their employees' conduct.

Additional Information for Validation

• BIT Score: 21.7
• Price Base Year: 2016
• Implementation Date: 3 January 2018
• Duration of Policy: 10 years
• Business Net Present Value: -37.4
• Net Cost to Business (EANDCB): 4.3

Relevant Documents

• Consultation Paper: FCA, September 2016, CP16/29: https://www.fca.org.uk/publication/consultation/cp16-29.pdf
• Policy Statement: FCA, July 2017, PS17/14: https://www.fca.org.uk/publication/policy/ps17-14.pdf
• FSA Consultation Paper: FSA, March 2010, CP10/7: http://www.fsa.gov.uk/pubs/cp/cp10_07.pdf
• European Commission Impact Assessment: https://ec.europa.eu/info/file/33578/download_en?token=EMcmdZOS

Conclusion

The FCA's decision to extend taping requirements under MiFID II is aimed at enhancing market integrity and transparency. While the compliance burden is significant, particularly for DIMs not previously taping, the benefits to consumer protection and regulatory oversight are expected to outweigh the costs. The BIT score of 21.7 suggests a moderate net cost to business, but the broader societal and consumer benefits are not quantified in the impact assessment.