Tracker, Financial Services Regulation & Compliance - Investment Firms


Central Bank publishes Consultation Paper on Corporate Governance Requirements for Investment Firms

The Central Bank has published a consultation paper on Corporate Governance Requirements for Investment Firms (CP No. 94). The paper proposes to introduce a number of corporate governance requirements for investment firms relating to:

  • Minimum board size (at least 3 directors):
  • The composition of the board (a majority of non-executive directors, subject to certain exemptions);
  • The role and responsibilities of the Chairman;
  • The role and responsibilities of the CEO;
  • The frequency of board meetings (at least four times per calendar year and at least once in every six month period);
  • The role and composition of the risk committee;
  • The role and composition of the audit committee.

In addition to the above "core requirements", additional requirements are proposed for firms designated as High and Medium High Impact under PRISM; low risk firms will be encouraged to adopt these additional requirements. Responses to the consultation paper should be submitted to the Central Bank no later than 5 August 2015.


FCA publishes Discussion Paper on MiFID II

The Financial Conduct Authority (FCA) has published a discussion paper on MiFID II (DP 15/3), in advance of a formal consultation on the implementation of MiFID II in the UK. The discussion paper deals with the following matters around MiFID II:

  • Application to insurance-based investment products and pensions;
  • Treatment of structured deposits;
  • Receipt of commissions and other benefits for discretionary investment managers;
  • Professional client business (in particular client categorisation and the treatment of local public authorities and municipalities);
  • Adviser independence;
  • Application of remuneration requirements to sales staff and advisers to non-MiFID firms;
  • Recording telephone conversations and electronic communications;
  • Costs and charges disclosures;
  • Revised inducements standards;
  • Complex and non-complex products and the application of the appropriateness test.

Date published: 07 May 2015