In Denmark MiFID will be implemented through a revision of the Danish Securities Trading Act and Financial Business Act and through a number of national regulations which primarily implement the level 2-Directive.
The Danish FSA has drafted a proposal for an amendment bill which was presented to the Parliament by the Minister of Economics and Business Affairs on 4 October 2006. There was a public consultation on an earlier draft during the summer. The Parliament is expected to pass the bill by the end of 2006. The bill is primarily implementing the level 1-Directive and therefore it is so far not possible to get an overall impression of the implementing legislation in Denmark.
The Danish FSA is currently drafting on several national regulations implementing the MiFID level 2-Directive. Some of the draft proposals for national regulations are expected to be published for public consultation by the end of October or in the beginning of November 2006.
Most notably the post trade transparency regime is expected to be applied to some extent on bonds which is an option for member states according to recital 46in the level 1-Directive.
The Danish Authorities – primarily the FSA – has announced implementation on time though the Danish Authorities have not yet presented an official timetable for the implementation of MiFID. As a matter of fact the implementation work is delayed - especially the national regulations – thus implementation on time does not seem likely unless firms are “squeezed” and part of their 9 month implementation period is used for the legislative work. At present an indicative timetable would be this:
• The Bill to be passed by the Parliament by end of 2006
• Public consultation on national regulations on level 2 Directive from FSA (DK) mid November 2006
• Complete national regulations on level 2 Directive by end of January 2007
The Danish Securities Dealers Association is playing an active role in the implementation phase in Denmark and is represented in the FSA working groups. It is our impression that the tight deadlines for the implementation give ground for frustration among member firms. Member firms are continuously reminded of the major work in preparing their organisations for the new rules and the important deadline 1 November 2007. However, system developments etc. cannot start until the national legislation is in place.
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