MiFID in Ireland

Markets in Financial Instruments Regulations (the Irish agenda) In Ireland, the Government Department responsible for the implementation of MiFID was the Department of Finance (in the UK it is HM Treasury).   The team at the Department of Finance ("DoF") worked extraordinarily hard in project managing the transposition of MiFID into Ireland.  The Irish Financial Services Regulatory Authority (the "Financial Regulator" - the Irish equivalent of the Financial Services Authority for the benefit of our UK readers) has contributed a great deal to the process and the DoF and the Financial Regulator maintained a close working relationship on MiFID.    30 June 2009 Final deadline for publication of Pillar 3 Capital and Risk Disclosures. December 2008 The Financial Regulator publishes updated Fit & Proper Requirements and Individual Questionnaires. Click here for resources.   The Financial Regulator publishes an updated Guidance Note on the authorisation of Multilateral Trading Facilities. Click here  for more details.   October 2008   The Financial Regulator publishes revised Client Asset Requirements. Click here  for more details.   1 January 2008   The provisions of the Capital Requirements Directive become fully effective for all MiFID firms.   November 2007 Regulation 40(5) of the MiFID Regulations requires the Financial Regulator to draw up and maintain a list of the minimum records that investment firms and credit institutions are required to keep under the Regulations and any other measures implementing the MiFID Directive into Irish law including the European Commission Regulation (EC) 1287/2006. The Financial Regulator prepares and publishes a List of Minimum Records in accordance with CESR Recommendations on the subject.   The Financial Regulator publishes revised Client Asset Requirements, incorporating the clarifications in the amending Regulations.   The Financial Regulator publishes Supplemental Supervisory Requirements   1 November 2007 The MiFID Regulations come into force. Minister Cowen signs the Commencement Order for those sections of the Markets in Financial Instruments & Miscellaneous Provisions Act 2007 which deal with MiFID and don't automatically come into force.   The Financial Regulator publishes the first register of authorised MiFID Firms. 31 October 2007 The Oireachtas passes the Markets in Financial Instruments & Miscellaneous Provisions Act 2007. 16 July 2007 We have uploaded the Financial Regulator's Feedback on Discussions of Conduct of Business Industry Working Group onto http://www.mifid.ie/FRConductofBusiness.html and also the Financial Regulator's FAQs on Transaction Reporting onto http://www.mifid.ie/FRTransactionReporting.html 24 June 2007 We have uploaded a speech by Con Horan, Prudential Director, Financial Regulator to the European Institute on 14 June 2007 on The MiFID in Ireland and the Impact on the Asset Management Industry which can be found by clicking here   24 June 2007: New MiFID & IFSRA page added to the website.  The new webpage replicates the Financial Regulator’s MiFID webpage. Go to http://www.mifid.ie/mifid&ifsra.html for more information.  The webpage was created because it is impossible to link to the regulator’s MiFID webpage (a dynamic php file page).  Our good faith intention is to simply help firms locate essential MiFID material posted on the regulator’s website.  Other regulatory websites are located in the Links page. 27 April 2007: Complementary Measures for MiFID published by the Minister.  The Markets in Financial Instruments and Miscellaneous Provisions Bill 2007 (Bill Number 34 of 2007) has been published. This MIFID Bill: ·         provides for complementary measures to the Regulations recently enacted to implement the Markets in Financial Instruments Directive into Ireland (see 20 February 2007 update below). ·         provides for the repeal of the Stock Exchange Act 1995 as its provisions have been overtaken by the MiFID reforms. ·         provides for penalties for conviction on indictment under the MiFID Regulations. ·         provides for a range of amendments to various acts including the Central Bank Act 1942 and the Netting of Financial Contracts Act 1995.   A copy of the Bill and the MiFID Regulations passed in February 2007 regulations are located at http://www.mifid.ie/MiFIDDownload.html   Ed’s note: Impact of Irish Election 2007 - You can follow the Bill’s progress through the Oireachtas (the Irish law making body) by clicking this link.  Remember – this is a Bill!  It does not become law until it is passed by both houses of the Oireachtas.  It is expected that this Bill will not become law until sometime after Summer 2007. Note: MiFID is an EU obligation and regardless of the new government formed in June 2007 (following Ireland's May 2007 general election), the Bill should be passed in a form substantially the same as published by the previous government.   20 February 2007: The Minister for Finance, Mr. Brian Cowen T.D., today (Tuesday 20. February 2007) welcomed the fact that Ireland is one of the first Member States to fully transpose the Markets in Financial Instruments Directive, or “MIFID” as it has come to be known. The Minister stated that the achievement of implementing the regulations [S.I. 60 of 2007] is owed to the Finance Department receiving close assistance of the Financial Regulator (www.ifsra.ie) and strong co-operation from industry.    The Minister summarised the MiFID as harmonising and modernising the EU-wide legislative framework for investment firms, promoting greater cross-border competition and the competitiveness of the EU financial sector overall. The MIFID provides investment firms with an effective “single passport” to provide their services across the EU on the basis of their home country authorisation. It is a key element of the EU’s Financial Services Action Plan supporting the creation of a single market in financial services. A copy of the regulations is located at http://www.mifid.ie/MiFIDDownload.html   The Minister said “our commitment to maintaining Ireland’s strong performance in the transposition of EU financial services directives is a key element of the Government’s strategy to support the continued development of international financial services in Ireland”. See the Ministerial Press Release at http://www.finance.gov.ie/viewdoc.asp?DocID=4565&CatID=1&StartDate=1+January+2007&m=n 29 January 2007:  [NB  - see '20 February 2007' update (above) for details on Ireland passing MiFID into local law]. There is no likelihood that Ireland will pass implementing regulations by 31st January 2007 (the extension date from 30 April 2006 under Article 70 of the Directive 2004/39/EC) in Ireland.  It is expected that Ireland will implement regulations implementing MiFID Level 1 and Level 2 in early February 2007.  As soon as these are published, we will either reproduce them on this website or we will provide you a link to the relevant page on the Department of Finance’s website.    The Department of Finance, on 29 January 2007, circulated the latest working draft of the Irish implementing regulations (i.e. implementing MiFID Level 1 and 2 Directives).  To access the latest working draft regulations go to our MiFID Download page and following the download instructions.  PLEASE NOTE THAT THE DOCUMENT IS A WORK IN PROGRESS DOCUMENT AND RELIANCE SHOULD NOT BE PLACED ON ITS CONTENTS. The 29 January 2007 draft regulations usurp the draft regulations detailed under the 11 May 2006 update text below. 30 June 2006: Charlie McCreevy, European Commissioner for Internal Market and Services: Preparing for MiFID, Institute for European Affairs, Dublin Ireland, 30 June 2006 http://europa.eu.int/rapid/pressReleasesAction.do?reference=SPEECH/06/430&format=HTML&aged=0&language=EN&guiLanguage=fr 26 June 2006:  European Securities Committee' gives unanimous approval for technical measures implementing MiFID. (click link) 11 May 2006:  [NB  - see '20 February 2007' update (above) for details on Ireland passing MiFID into local law]. European Committees (Markets in Financial Instruments) Regulations 2005 (draft only) released by Department of Finance.  Click here to download the Regulations in draft format. Draft Regulations have been sent to the Office of the Parliamentary Counsel for formal legal drafting. As noted above, DoF has worked closely with the Financial Regulator in the preparation of the Draft Regulations. The Draft Regulations will replace many section of the Investment Intermediaries Act 1995. The MiFID must be transposed by 31st January 2007 and will come into effect for the industry by 1st November 2007. MiFID amends and updates the Investment Services Directive 1993, Directive 93/22/EEC of 10th May 1993 (OJ L 141, 11.6.1993, p.27); it also repeals the 1993 ISD with effect from 1 November 2007. The 1993 ISD was transposed in Ireland by the Investment Intermediaries Act, 1995 and the Stock Exchange Act, 1995.   Level 2 Measures MiFID comes under the Lamfalussy process whereby certain principles are agreed in the framework Directive with the technical detail being subsequently set out in so-called Level 2 Implementing Measures (in this case a Commission Directive and a Commission Regulation.) These Level 2 measures are currently under discussion at EU level and are expected to be formally adopted in the early autumn. The same transposition deadline will apply to the Level 2 measures.   Markets in Financial Instruments Bill 2006 A short Bill will also be required to transpose certain aspects of the Directive, such as to continue to make it an indictable offence to operate as an Investment Firm without authorisation (i.e. for the expanded definition of what constitutes an Investment Firm). The primary legislation is also intended to repeal the Stock Exchange Act 1995.