Database on German and European Economic Law

 Directive 2006/31/EC

I. Description

This proposal concerns extending the transposition deadline for Member States and the compliance date for regulated firms of Directive  2004/39/EC on Market in Financial Instruments (  MiFID). This is because serious difficulties have been reported by industry and Member States in  relation to the ability of regulated entities to comply with the current deadline for transposition of the Directive (30 April 2006).

1. Adoption of implementing measures in practice shortens transposition period

The transposition deadline agreed in Council and by the European Parliament was the standard 24 months after the entry into force of the  directive. However, a significant part of that transposition period will be taken up by the preparation of the necessary implementing measures for  17 provisions of the directive, which cannot be effective without such measures. Under current planning, the Commission expects to have adopted the complete set of implementing measures by the beginning of 2006. The adoption of these measures cannot be accelerated both because of  their complexity, the need to consult widely and building consensus as well as because the process must be carried out in accordance with the  comitology procedure specified in Decision 1999/468/EC. Transposition of those provisions of the Directive which are linked to implementing measures cannot proceed until the concomitant implementing measures have been finalised. In fact, this delay in turn affects the timely  transposition of other provisions of the Directive related to the provisions that require implementing measures. As a result, Member States will not have sufficient time to complete the transposition of the entire Directive in the period between the expected adoption of the implementing measures (beginning 2006) and the current transposition deadline (April 2006). Therefore in order to ensure the effective and uniform  implementation of the  MIFID in all Member States from the transposition deadline, it is appropriate to postpone that deadline.

2. Practical implications for the firms

The Commission services have been informed by a wide range of industry participants that the current  MIFID implementing timetable imposes  impossible deadlines for the entities within its scope. These contend that compliance with the  MIFID may require significant time consuming  modifications to their technological infrastructure, IT software, record-keeping and reporting systems. In addition, firms may have to adapt internal policies and guidelines concerning client relations, the segregation of assets, and the management of conflicts of interest. Moreover, market  participants claim not to be able to make definitive decisions as to what operational steps will be needed until implementing measures are finally  adopted. Directive 2004/39/EC only sets general principles with respect to these requirements; the precise technical details will be provided for in  the implementing legislation which will not be available until year end.

Source: commission proposal

II. General Information


Directive 2006/31/EC of the European Parliament and of the Council of 5 April 2006 amending directive 2004/39/EC on markets in financial instruments, as regards certain deadlines

O.J. EC No L (Legislation), Edition 114, Year 2006, p.60
Regular Act
Legal Basis
Art. 47 EC
Legislative Procedure
Codecision procedure

III. Versions and Legislative History

1. Versions

Allg. Daten

Original Text :
Directive 2006/31/EC of the European Parliament and of the Council of 5 April 2006 amending directive 2004/39/EC on markets in financial instruments, as regards certain deadlines


04/05/2006 (A)
04/27/2006 (P)
(A) Adoption | (P) Promulgation

2. Legislative History

Typ / Titel
Report of the European Parliament - 1st reading
O.J. EC No. C, Ausgabe 286E, Jahr 2006, p. 196
Opinion of the European Central Bank
O.J. EC No. C, Ausgabe 323, Jahr 2005, p. 31
COM(2005) 253 endgültig

3. Legal Impact

  Directive 2004/39/EC


Legislative Act Status


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I. Description
II. General Information
III. Versions and Legislative History
1. Versions
2. Legislative History
3. Legal Impact