Tracker, Financial Services Regulation & Compliance - Investment Firms


DOMESTIC:

Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Investment Firms) Regulations 2017 (S.I. No. 60 of 2017) are published

The Regulations specify certain supervisory and reporting requirements for investment business firms, as well as organizational, outsourcing, own funds and capital adequacy requirements for fund administrators. The Regulations apply to MiFID investment firms and to certain investment business firms authorised under the Investment Intermediaries Act 1995.

Central Bank publishes Central Bank Investment Firms Regulations 2017 - Questions and Answers - 1st Edition

The Q&A document sets out answers to queries which may arise in relation to the Central Bank Investment Firms Regulations 2017 such as, inter alia, whether fund administrator requirements apply to non-Irish funds, what are the “key performance indicators" referred to in Regulation 21(1)(o)(i), whether changes to existing outsourcing agreements can be notified as part of an annual outsourcing return and whether the new definition of final NAV is applicable to all investment funds. The Q&A document was published on 13 March 2017.

Central Bank issues guidance on a number of topics in relation to the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Investment Firms) Regulations 2017

The Central Bank has issued guidance to assist firms complying with the requirements of the Regulations on the following topics:

  • Relationship with the Central Bank
     
  • Fund Administrators Outsourcing
     
  • Own Funds, Risk Assessment and Capital Planning For Fund Administrators

The Guidance came into effect on 13 March 2017.

Central Bank launches a Consultation on the protection of retail investors in relation to the distribution of Contracts for Difference

The Consultation Paper discusses the Central Bank’s concerns in relation to CFDs and outlines measures that the Central Banka are considering to protect the interests of retail clients such as the sale or distribution of CFDs to retail clients in and from Ireland and the implementation of enhanced investor protection measures. The deadline for submissions is 29 May 2017.

EUROPEAN: 

European Commission publishes Delegated Regulation EU) No .../.. of 2.3.2017 amending the EMIR Regulation (EU) No 648/2012

The Delegated Regulation provides that central banks and public bodies charged with or intervening in the management of public debt in Australia, Canada, Hong Kong, Mexico, Singapore, and Switzerland should be exempted from the clearing and reporting requirements laid down in EMIR.

Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions publishes Technical Guidance on the harmonisation of the Unique Transaction Identifier

The Technical Guidance provides guidance to authorities to enable them to set rules for a uniform global Unique Transaction Identifiers (UTIs) to over-the-counter (OTC) derivatives transactions. It covers the following areas:

  • The circumstances in which a UTI should be used
     
  • The impact life cycle events should have on the UTI
     
  • Which entity (or entities) should be responsible for generating UTIs
     
  • When UTIs should be generated
     
  • The UTI’s structure and format

European Securities and Markets Authority publishes its Final Report in relation to draft regulatory technical standards on package orders for which there is a liquid market

The revised draft RTS establish a methodology for determining whether there is a liquid market for package orders as a whole under the amended Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR). ESMA submitted the final report to the European Commission on 27 February 2017. The Commission has three months to decide whether to endorse the draft RTS.

Commission seeks the European Securities and Markets Authority's technical advice on possible delegated acts to supplement the Prospectus Regulation

ESMA was invite to provide technical advice on:

  • The format of the prospectus, the base prospectus and the final terms, and the schedules defining the specific information which must be included in a prospectus
     
  • The schedule defining the minimum information contained in the universal registration document
     
  • The reduced information to be included in the schedules applicable under the simplified disclosure regime for secondary issuances
     
  • The content, format and sequence of the EU Growth prospectus including its specific summary
     
  • The criteria for the scrutiny of prospectuses and URDs and the procedures for their approval
     
  • The procedures for the filing and review of the URD and the conditions where the status of frequent issuer is lost
     
  • The minimum information content of documents describing a merger or a takeover by way of exchange offer
     
  • General equivalence criteria for prospectuses drawn up under the laws of third countries

European Securities and Markets Authority to cooperate with non-EU regulators on Central Counterparties

ESMA has entered into five Memoranda of Understanding (MoUs) under the European Markets Infrastructure Regulation. These MoUs establish cooperation arrangements, including the exchange of information, regarding Central Counterparties which are established and authorised or recognised in Brasil, Japan, India, the Dubai International Financial Center or the United Arab Emirates, and which have applied for EU recognition under EMIR.

European Securities and Markets Authority issues a call for candidates for Stakeholder Panel

ESMA is seeking Investor Protection experts to renew the composition of its Consultative Working Group (CWG) which advises ESMA’s Investor Protection and Intermediaries Standing Committee. CWG members are selected for a renewable term of two years.

European Securities and Markets Authority publishes Questions and Answers on the Central Securities Depositories

The Q&A, published on 13 March 2017, covers general questions on ancillary services as well as CSD questions on:

  • Autorisation and supervision of CSDs
     
  • Organisational requirements
     
  • Record keeping
     
  • Conduct of business rules
     
  • Protection of securities of participants and those of their clients
     
  • Prudential requirements – Operational risks
     
  • Market infrastructures

European Securities and Markets Authority publishes ' Report on Trends, Risks and Vulnerabilities No. 1, 2017'

The Report found that EU financial markets remained relatively calm, although very reactive to political events. In addition, liquidity has increased in government bond market however, there has been an increase in the level of complaints relating to debt securities.

European Securities and Markets Authority publishes Statement on Recovery and Resolution of CCPs

The Statement, made at the European Parliament Economic and Monetary Affairs Committee's public hearing on the proposal to introduce a recovery and resolution regime for CCPs, welcomed the proposal and outlined ESMA's recommendations in relation to three key aspects of the proposal: recovery planning, resolution tools and governance of the resolution process.

European Securities and Markets Authority has updated today its list of recognised central counterparties (CCPs) based in third countries

ESMA recognised the following entities:

  • Dubai Commodities Clearing Corporation (DCCC);
     
  • Clearing Corporation of India Ltd (CCIL);
     
  • Nasdaq Dubai Ltd;
     
  • Japan Commodity Clearing House Co., Ltd (JCCH);
     
  • BM&FBovespa S.A., Brazil; and
     
  • Nodal Clearing LLC, USA.     

For further information please contact a member of the Financial Regulation team. 

Date published: 05 Apr 2017