KNF sets temporary MiFiD II rules

Financial Supervision Authority KNF issued temporary guidelines for applying MiFID II directive since the domestic legislation is expected to be implemented in March/April. The KNF regulations will come into force on January 3. KNF has applied the rule of higher priority of EU regulations, which means that domestic laws will be applied only if they do not violate EU regulations. KNF may also directly apply EU directives, as long as they are precise and unconditional, define individual's rights versus the state, the regulator noted. MiFID is the updated EU-wide regulation that increases the transparency across the European Union's financial markets and standardizes the regulatory disclosures required for particular markets. The MiFID implemented new measures, such as pre- and post-trade transparency requirements, and set out the conduct standards for financial firms.