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This Practice Note summarises what mifid business is as the term is defined in the Financial Conduct Authority (FCA) Glossary and provides a flowchart to work through the specific elements involved in determining whether the UK provisions of the Markets in Financial Instruments Directive (Directive 2014/65/EU) (MiFID II) apply. It also highlights the exemptions that may allow firms to fall outside the scope of MiFID II. Firms that fall within the scope of the UK provisions which implemented MiFID II must be authorised under Part 4A of the Financial Services and Markets Act 2000 (FSMA 2000) and comply with various organisational, conduct of business and other rules. This Practice Note also introduces the regime that applies to UK data reporting services.

Although the UK has now withdrawn from the EU, the FCA continues to distinguish between MiFID business and non-MiFID business.

For information about the UK’s reforms of its MiFID II framework including in relation to the wholesale markets review, see Practice Note: UK MiFID II reforms.

For further information about the FCA and Prudential Regulation Authority (PRA) authorisation