The FSA have confirmed that a further delay to the implementation of the Markets in Financial Instruments Directive (MiFID) is likely.  This follows a recent Reuters' report that said the UK, which currently holds the EU Presidency, had approached the European Commission to seek an extension to the implementation deadline until November 2007. In their recent newsletter, the FSA have now confirmed this information and have also stated that the European Commission has tabled a proposal to the Council of Ministers and European Parliament seeking a 12 month delay.

MiFID has been the subject of widespread debate and displeasure within the industry, not least by FSA Chairman, Callum McCarthy, who recently described the Directive as exerting a "pervasive effect" over financial markets and financial institutions. Industry bodies have also been highly critical of MiFID for being too cumbersome and complex.

A recent survey reported over three-quarters of respondents saying their organisation either does not have a MiFID compliance framework in place or if it did, they did not know about it. With EU Member State regulators concerned that the timetable for implementation by April 2007 is unmanageable, it would seem likely that a delay will be approved.

In their newsletter outlining their revised timing for consultation on implementation of MiFID, the FSA has said, "The Council of Ministers and the European Parliament are currently considering a proposal from the European Commission to delay the implementation of the Markets in Financial Instruments Directive (MiFID) by 12 months. The UK Presidency has recently tabled a proposal that would see a further extension of 6 months, which would result in a final transposition date for Member States of 31 January 2007 and an implementation date for firms of 1 November 2007.