European Union (Markets in Financial Instruments) Regulations 2017.

• Jurisdiction: Ireland

CONTENTS

PART 1

PRELIMINARY

1. Citation and commencement

2. General purpose of Regulations and application of certain provisions

3. Interpretation

4. Exemptions

PART 2

AUTHORISATION OF INVESTMENT FIRMS

5. Requirement for authorisation (and certain provisions concerning MTFs and OTFs)

6. Bank to establish and maintain register of authorised investment firms

7. Requirements of investment firm authorisations

8. Application to Bank for authorisation

9. Prerequisites to granting authorisation

10. Time limits for grant or refusal of applications for authorisation

11. Unincorporated investment firms — special provisions

12. Scope of authorisation

13. Withdrawal of authorisation by Bank

14. Revocation of authorisation by Court

15. Notice of proposed withdrawal of authorisation and publication of withdrawal

16. Prohibition against false or misleading application for investment firm authorisation

PART 3

REGULATION AND SUPERVISION OF INVESTMENT FIRMS

Chapter 1

Management bodies and persons with qualifying holdings

17. Management bodies

18. Shareholders and members with qualifying holdings

Chapter 2

Proposed acquisitions and disposals

19. Interpretation of Chapter

20. Notification of proposed acquisitions

21. Assessment period

22. Assessment

Chapter 3

Organisational requirements

23. Organisational requirements

24. Algorithmic trading

25. Trading process and finalisation of transactions in MTF and OTF

26. Specific requirements for MTFs

27. Specific requirements for OTFs

PART 4

OPERATING CONDITIONS FOR INVESTMENT FIRMS

Chapter 1

General provisions

28. Regular review of conditions for initial authorisation

29. General obligation in respect of on-going supervision

30. Conflicts of interest

Chapter 2

Provisions to ensure investor protection

31. Duty to act in interests of clients and comply with principles

32. General principles and information to clients

33. Assessment of suitability and appropriateness and reporting to clients

34. Provision of services through the medium of another investment firm

35. Obligation to execute orders on terms most favourable to client

36. Client order handling rules

37. Obligations of investment firms when appointing tied agents

38. Transactions executed with eligible counterparties

Chapter 3

Market transparency and integrity

39. Monitoring of compliance with rules of MTF or OTF and with other legal obligations

40. Suspension and removal of financial instruments from trading on MTF or OTF

Chapter 4

SME growth markets

41. SME growth markets

PART 5

RIGHTS OF EU INVESTMENT FIRMS AND CREDIT INSTITUTIONS

42. Freedom to provide investment services and activities

43. Member State investment firms and Member State credit institutions establishing branches in the State

44. Authorised investment firms and credit institutions establishing branches in other Member States

45. Access to regulated markets

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

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

PART 6

PROVISION OF INVESTMENT SERVICES AND INVESTMENT ACTIVITIES TO CERTAIN CLIENTS BY THIRD COUNTRY FIRMS

48. Provision of services or performance of activities to certain clients through establishment of branch

49. Obligation to provide information to Bank etc.

50. Granting of authorisation

51. Provision of service at exclusive use of the client

52. Withdrawal of authorisation

PART 7

REGULATED MARKETS

53. Prerequisites for authorisation to operate regulated market

54. Applicable law to trading conducted on domestic regulated market

55. Application to Bank for authorisation to operate regulated market

56. Grant of authorisation by Bank

57. Refusal of authorisation by Bank

58. Power of Bank to obtain further information

59. Prohibition against false or misleading application to operate regulated market

60. Compliance by market operators of regulated market

61. Review and monitoring by Bank

62. Withdrawal of authorisation

63. Revocation of authorisation by Court

64. Bank to give notice of proposed withdrawal of authorisation

65. Publication of withdrawal of authorisation

66. Requirements for management body of market operator

67. Nomination committee

68. Further requirements

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

70. Organisational requirements

71. Execution of client orders, etc. in certain circumstances: prohibition

72. Systems resilience, circuit breakers and electronic trading

73. Tick sizes

74. Synchronisation of business clocks

75. Admission of financial instruments to trading

76. Suspension and removal of instruments from trading on regulated market

77. Access to regulated market

78. Monitoring of compliance with rules of regulated market and with other legal obligations

79. Provisions regarding central counterparty and clearing and settlement arrangements

80. List of regulated markets

PART 8

POSITION LIMITS AND POSITION MANAGEMENT CONTROLS IN COMMODITY DERIVATIVES AND REPORTING

81. Position limits and position management in commodity derivatives positions

82. Position reporting by categories of position holders

PART 9

DATA REPORTING SERVICES

83. Requirement for authorisation

84. Scope of authorisation

85. Procedures for granting and refusing requests for authorisation

86. Withdrawal of authorisation of data reporting services provider

87. Requirements for management body of data reporting services provider

PART 10

CONDITIONS FOR APAs, CTPs AND ARMs

88. Organisational requirements for APAs

89. Organisational requirements for CTPs

90. Organisational requirements of ARMs

PART 11

THE BANK AS COMPETENT AUTHORITY

Chapter 1

Designation, powers and redress procedures

91. Bank to be competent authority

92. Supervisory powers of Bank as competent authority

93. Delegations, etc.

Chapter 2

Appointment of Authorised Officers, Appointment of Inspectors, their powers and related matters

94. Power to appoint authorised officers

95. Function of authorised officers and their powers in that regard

96. Search warrant

97. Appointment of inspector by Court

98. Power of inspector to extend investigation

99. Direction to inspector by Court

100. Powers of inspection

101. Expenses of and fees relating to an investigation

102. Inspectors’ reports and proceedings thereon

103. Powers of Court following consideration of reports

104. Appointment of inspector by Bank

105. Search and seizure

106. Admissibility in evidence of reports of inspectors

107. Privilege

108. Consent to publication of information

109. Privilege

110. Obstruction, failure to cooperate etc. — offences

111. Power of Bank to issue directions to non-regulated financial service providers

Chapter 3

Enforcement in relation to non-regulated financial service providers

112. Interpretation (Part 11, Chapter 3)

113. Bank may appoint assessor

114. Revocation of appointment of assessor

115. Power to require witnesses to appear and give evidence

116. Referral to the Court on a question of law

117. Assessee to be issued copy of any adverse assessment, etc.

118. Right of appeal against adverse assessment (including specified sanctions)

Chapter 4

Sanctions

119. Sanctions for contraventions

120. Power to correct assessments

121. When specified sanctions take effect

122. Enforcement of adverse assessment (including specified sanctions)

123. Person not liable to be penalised twice for same contravention

124. Power of the Bank to resolve certain contraventions etc.

125. False etc. information

126. Publication of decisions

127. Exercise of supervisory powers and powers to impose sanctions

128. Reporting of infringements

129. Right of appeal

130. Relations with auditors

131. Amendment of Act of 1942

PART 12

COOPERATION BETWEEN COMPETENT AUTHORITIES AND WITH ESMA

132. Obligation to cooperate

133. Cooperation in supervisory activities, for on-site verifications or in investigations

134. Exchange of information

135. Binding mediation

136. Refusal to cooperate

137. Consultation before authorisation

138. Powers for host Member States

139. Precautionary measures to be taken by host Member States

140. Co-operation and exchange of information with ESMA

PART 13

COOPERATION WITH THIRD COUNTRIES

141. Exchange of information with third countries

PART 14

FINAL PROVISIONS

142. Amendments to the Investment Intermediaries Act 1995

143. Transitional provisions

144. Further transitional provisions

145. Revocation of existing Regulations

146. Liquidators, receivers, administrators, examiners, official assignees or creditors

147. Application to the Court

148. Winding up of investment firm or market operator by Court

SCHEDULE 1

INVESTMENT SERVICES AND ACTIVITIES AND FINANCIAL INSTRUMENTS

PART 1

Investment services and activities

PART 2

Ancillary services

PART 3

Financial instruments

PART 4

Data reporting services

SCHEDULE 2

PROFESSIONAL CLIENTS

1. Definition of “professional client”

2. Clients which are professional clients

3. Request for higher level of protection by professional clients

4. Clients who may be treated as professionals on request

5. Procedure for clients who may be treated as professionals on request

6. Definition

SCHEDULE 3

SAFEGUARDING CLIENT FINANCIAL INSTRUMENTS AND FUNDS

1. Safeguarding client financial instruments and funds

2. Depositing client financial instruments

3. Depositing client funds

4. Use of client financial instruments

5. Inappropriate use of title transfer collateral arrangements

6. Governance arrangements concerning the safeguarding of client assets

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