Introduction to MiFID Firms 

The Central Bank is responsible for:

  • the prudential regulation and supervision of MiFID Investment Firms authorised in Ireland
  • the regulation and supervision of the conduct of business of MiFID firms authorised in Ireland
  • the regulation and supervision of those provisions of the MiFID relevant to the financial services market in Ireland

Background to MiFID

The Markets in Financial Instruments Directive (MiFID) replaced the Investment Services Directive (ISD). 

MiFID makes changes to the regulatory framework to reflect developments in financial services and markets since the ISD was implemented. 

In particular, MiFID expands the types of business that must be regulated in Ireland to include activities relating to a wider range of commodity and other non-financial derivatives.   

MiFID also introduces the concept of a harmonised set of rules across the EU, governing the organisation of the business of an investment firm necessary to obtain an authorisation, and rules governing the conduct of an investment firm’s investment business activities. 

In addition, some of the MiFID requirements are also relevant to credit institutions providing investment services or performing investment business activities.  

Important Information for MiFID Firms 

04 June 2013: MiFID firms subject to the CRD should note that the EBA has published a Consultation Paper on Draft Regulatory Technical Standards on the definition of market under Article 330(3) of the draft Capital Requirements Regulation (CRR) and a Consultation Paper on Draft Regulatory Technical Standards on non-delta risk of options in the standardised market risk approach under Articles 318(3), 341(6) and 347(4) of the draft Capital Requirements Regulation (CRR). Firms that wish to comment should do so by 31 August 2013.

MiFID firms subject to the CRD should also note that the EBA has published a Consultation Paper on Draft Regulatory Technical Standards on Own Funds under Articles 33(2), 69a(6) and 79(3) of the draft Capital Requirements Regulation (CRR). Firms that wish to comment should do so by 18 July 2013.

Finally, MiFID firms subject to the CRD who are authorised to provide one or both of the investment services listed in points 3 and 6 of Section A of Annex I to Directive 2004/39/EC should note that the EBA has published a Consultation Paper on Draft Implementing Technical Standards on Additional Liquidity Monitoring Metrics under Article 403(2) of the draft Capital Requirements Regulation (CRR) and a Consultation Paper on Draft Regulatory Technical Standards on additional liquidity outflows corresponding to collateral needs resulting from the impact of an adverse market scenario on the institution’s derivatives transactions, financing transactions and other contracts for liquidity reporting under Article 411 (3). Firms that wish to comment should do so by 14 August 2013.

22 May 2013: MiFID firms subject to the CRD should note that the EBA has published a Consultation Paper on Draft Regulatory Technical Standards on criteria to identify categories of staff whose professional activities have a material impact on an institution’s risk profile under Article 90(2) of the proposed Capital Requirements Directive. Firms that wish to comment on the Paper should do so by 21 August 2013.

21 May 2013: MiFID firms subject to the CRD that have a minimum initial capital requirement of €730,000 should note that the EBA has published two consultation papers: the Consultation Paper on Draft Regulatory Technical Standards on the assessment of recovery plans under the draft directive establishing a framework for the recovery and resolution of credit institutions and investment firms; and the Consultation Paper on Draft Regulatory Technical Standards specifying the range of scenarios to be used in recovery plans under the draft directive establishing a framework for the recovery and resolution of credit institutions and investment firms. Firms that wish to comment on the consultation papers should do so by 20 August 2013.

28 March 2013: MiFID firms subject to the CRD should note that the Council of the European Union has published the texts of the political agreement on the Regulation and Directive comprising CRD IV. The proposal replaces the current Capital Requirement Directives 2006/48/EC and 2006/49/EC. Note that this is not the final text which will be published in the Official Journal of the European Union. The new rules (subject to certain transitional arrangements) will apply from 1 January 2014 if publication takes place in the Official Journal by 30 June 2013.

19 March 2013: MiFID firms subject to the CRD should note that the EBA has published an updated version of the templates, instructions, validation rules and data point model for implementing technical standards (ITS) on supervisory reporting (COREP and FINREP).

18 October 2012: MiFID firms should note that the Commission's proposal for a Directive establishing a framework for the recovery and resolution of credit institutions and investment firms is available on its website. MiFID Firms subject to the Capital Requirements Directive with a minimum initial capital requirement of €730k fall within the scope of the proposed Directive.

03 October 2012: MiFID firms should note that the Commission's proposal for MiFID II is available on its website. The proposal will repeal the Markets in Financial Instruments Directive 2004/39/EC and replace it with a Directive and Regulation.  

12 September 2011: MiFID firms should note that information on the Commission's proposal for CRD IV is available on its website. The proposal replaces the current Capital Requirements Directives (2006/48/EC and 2006/49/EC) with a Directive and a Regulation. The timeline is set out as follows: entry into force of the new legislation on 01 January 2013 and full implementation by 01 January 2019.

MiFID firms should note that updates on European legislative proposals are available on the websites of the European Commission,  the Council of the European Union and the European Parliament.