Directive (EU) 2021/338 of 16 February 2021 was introduced to amend Directive 2014/65/EU (‘MiFID II’), as regards information requirements, product governance and position limits, and Directives 2013/36/EU and (EU) 2019/878 as regards their application to investment firms, to help the recovery from the COVID-19 crisis.
One of the most important amendments introduced was the temporary suspension of the RTS 27 reporting requirements, as they were deemed “not to enable investors and other users to make any meaningful comparisons on the basis of the information they contain” (Recital 9 of the Directive (EU) 2021/338).
Thus, in Article 27(3) of the MiFID II, the following subparagraph has been added:
“The periodic reporting requirement to the public laid down in this paragraph shall not apply until 28 February 2023. The Commission shall comprehensively review the adequacy of the reporting requirements laid down in this paragraph and submit a report to the European Parliament and the Council by 28 February 2022”.
The Directive (EU) 2021/338 has entered into force on 27 February 2021.
It remains to be seen how CySEC will implement those amendments on a national level, as EU Directives are not directly effective but need to be enacted by national legislation. However, it is expected that all EU regulators will adopt this.
Our team of experts at FiveComply will keep you posted on any updates.