European Communities (Markets in Financial Instruments) Regulations, 2007

JurisdictionIreland
CitationIR SI 60/2007
Year2007

STATUTORY INSTRUMENT

S.I. No. 60 OF 2007

REGULATIONS

entitled

European Communities (Markets in Financial Instruments) Regulations 2007

PART 1 - PRELIMINARY AND GENERAL PROVISIONS

1.

Citation and commencement

PART 2 - DEFINITIONS AND SCOPE

2.

Object and scope of these Regulations

3.

Interpretation

4.

Competent Authority

5.

Exemptions

PART 3 - TRANSITIONAL

6.

Existing regulation

PART 4 - AUTHORISATION OF INVESTMENT FIRMS

7.

Requirement for authorisation

8.

When investment firm may be regarded as operating in the State

9.

Bank to establish and maintain register of investment firms

10.

Requirements of investment firm authorisations

11.

Application to Bank for an authorisation to operate as an investment firm

12.

Prerequisites relating to qualifying holdings in investment firms

13.

Prerequisites to granting authorisations for investment firms

14.

Bank may obtain further information from applicant by request, inquiry or investigation

15.

Time frame for granting and refusing applications for authorisations for investment firms

16.

Investment firms - capital, management, structure, control

17.

Unincorporated investment firms - special provisions

18.

Investment firms, dividing responsibility between their home and host Member States

19.

Prohibition against false or misleading application for investment firm authorisation

20.

Scope of authorisation

21.

Withdrawal of authorisations for investment firms

22.

Court may revoke authorisation on application by Bank

23.

Bank to give notice of proposed withdrawal or revocation of authorisation

24.

Publication of withdrawal or revocation of authorisation

25.

Definitions for Regulations 25 to 28

26.

Continued responsibilities of former authorised investment firms

27.

Bank supervision of certain activities of former authorised investment firms

28.

Certain obligations of persons responsible during firm's termination process

PART 5 - REGULATION AND SUPERVISION OF INVESTMENT FIRMS

29.

Persons who effectively direct the business

30.

Shareholders and members with qualifying holdings

31.

Membership of authorised Investor Compensation Scheme

32.

Initial capital endowment

33.

Organisational requirements

34.

Further - business procedures, internal control mechanisms and reporting, etc.

35.

Further - monitoring and evaluating systems, control mechanisms and the like

36.

Risk management function

37.

Internal audit function, supervisory function and senior management

38.

Complaint procedures

39.

Personal transaction procedures

40.

Retention of records

41.

Trading process and finalisation of transactions in an MTF

42.

Relations with third countries

PART 6 - REGULATED MARKETS

43.

Authorisation and applicable law

44.

Trading under regulated markets subject to Irish law

45.

Market operator's responsibility for establishing regulated market

46.

Regular review by Bank of market operators and regulated markets

47.

Application to Bank for an authorisation to operate a regulated market

48.

Prerequisites to granting authorisations for regulated markets

49.

Bank may obtain further information from applicant by request, inquiry or investigation

50.

Time frame for granting or refusing applications for authorisations for regulated markets

51.

Regulated markets - management, structure, control

52.

Prohibition against false or misleading application to operate regulated market

53.

Withdrawal of authorisations for regulated markets

54.

Bank may apply to Court for order revoking authorisation

55.

Bank to give notice of proposed withdrawal or revocation of authorisation

56.

Publication of withdrawal or revocation of authorisation

57.

Definitions for Regulations 57 to 60

58.

Continued responsibilities of former market operators

59.

Bank supervision of certain activities of former market operators

60.

Certain obligations of former market operators during operator's termination process

61.

Requirements for the management and operation of the regulated market

62.

Requirements relating to persons exercising significant influence over the management of the regulated market

63.

Organisational requirements

64.

Admission of financial instruments to trading

65.

Suspension and removal of instruments from trading

66.

Access to the regulated market

67.

Monitoring of compliance with the rules of the regulated market and with other legal obligations

68.

Pre-trade transparency requirements for regulated markets

69.

Post-trade transparency requirements for regulated markets

70.

Provisions regarding central counterparty and clearing and settlement arrangements

71.

List of regulated markets

PART 7 - OPERATING CONDITIONS FOR INVESTMENT FIRMS

72.

Review of conditions for initial authorisation

73.

General obligation in respect of on-going supervision

74.

Conflicts of interest

75.

Conflicts of interest continued

76.

Conduct of business obligations when providing investment services to clients

77.

Provision of certain types of information by investment firms to clients

78.

Certain conduct not regarded as in client's best interests

79.

Bank may impose additional requirements in exceptional cases

80.

Information for clients and potential clients

81.

Information for retail clients, professional clients and eligible counterparties

82.

Providing certain general information for clients

83.

Portfolio management

84.

Information about nature and risks of financial instruments

85.

Information about financial instrument subject to public offering

86.

Information about financial instrument subject to public offering

87.

Information about financial instrument with guarantee by third party

88.

Information abut financial instrument belonging to retail clients

89.

Accounts subject to another jurisdiction

90.

Accounts subject to investment firm security interest

91.

When investment firm enters into certain security financing transactions

92.

Information on costs and charges

93.

Collective investment undertakings

94.

Assessment of suitability and appropriateness

95.

Non-complex instruments

96.

Reporting to clients

97.

Best execution

98.

Investment firm to act in clients’ best interests

99.

Conduct of business obligations in more limited circumstances

100.

Duty of investment firm to record rights and obligations

101.

Duty of investment firm to report to clients about transactions, services and costs

102.

Regulations 76 to 101 inapplicable to specific financial products otherwise regulated

103.

Provision of services through the medium of another firm

104.

Critical and important operational functions

105.

Investment firm's responsibilities respecting outsourcing to service provider

106.

Obligation to execute orders on terms most favourable to client

107.

Client order handing by investment firms

108.

Client order handling rules

109.

Obligations of investment firms when appointing tied agents

110.

Public registry of tied agents to be maintained by Bank

111.

Transactions executed with eligible counterparties

PART 8 - MARKET TRANSPARENCY AND INTEGRITY

112.

Obligation to uphold integrity of markets, report transactions and maintain records

113.

Monitoring of compliance with the rules of the MTF and with other legal obligations

114.

Obligation for investment firms to make public firm quotes

115.

Bank to determine classes to which particular shares belong

116.

Further duties of systematic internalisers respecting their quotes

117.

Bank to monitor for compliance

118.

Business risk-reductions measures available to system internalisers

119.

Post-trade disclosure by investment firms

120.

Pre-trade transparency requirements for MTFs

121.

Post-trade transparency requirements for MTFs

PART 9 - CROSS BORDER ACTIVITIES

122.

Definition for this Part

123.

Freedom of investment firms from other Member States to provide services in State

124.

Investment firms and market operators providing services in other Member States

125.

Investment firms authorised in other Member States establishing branches in Ireland

126.

Application of this Part to investment firms with branches in the State

127.

Authorised investment firms establishing branches in other Member States

128.

Access to regulated markets

129.

Access to central counterparty, clearing and settlement facilities and right to designate settlement system

130.

Provisions regarding central counterparty, clearing and settlement arrangements in respect of MTFs

131.

Delegation by the Bank

132.

Obligation to assist and cooperate with other Member States

133.

Reciprocal duties of competent authorities respecting misconduct by regulated entities in other Member States

134.

Cooperation in supervisory activities, on-the-spot verifications or in investigations

135.

Exchange of information between competent authorities

136.

Refusal to cooperate

137.

Inter-authority...

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