Status of Implementation of MiFID2 in Germany

In November 2015, the German Federal Ministry of Finance (Bundesministerium der Finanzen - BMF) published a so called ministerial draft bill (Referentenentwurf) implementing MiFID2. The draft was called German Financial Market Amendment Act (Finanzmarktnovellierungsgesetz - FimanoG).

On 06 January 2016 the BMF stated on its website that the application and implementation date of MiFID2 will be postponed from 03 January 2017 to 03 January 2018. As a consequence thereof, the BMF published a revised draft of the FimanoG; the so called first German Financial Market Amendment Act (1. Finanzmarktnovellierungsgesetz).

This new draft shall implement, inter alia, the market abuse directive and regulation, PRIIPS regulation and other regulatory requirements. MiFID2, however, was not included in this new draft.

However, the aforementioned ministerial draft bill implementing MiFID2 is not abolished. It is still the latest version of a draft German act implementing MiFID2.

The BMF sets forth that MiFID2 shall be subject to and implemented through a further second German Financial Market Amendment Act (2. Finanzmarktnovellierungsgesetz) at a later time. Unfortunately, a date or timeline providing clarity on the implementation of MiFID2 in Germany has not been published.

Although the implementation of MiFID2 will be postponed it is not recommendable to stop already initiated entity-related implementation processes. It is likely that the German legislator will revert to its original ministerial draft bill for the purposes of obtaining clarity on the content, scope and timing of implementing MiFID2 at a European level.