S.I. No. 355/2021 - European Union (Investment Firms) Regulations 2021

Cooperation with resolution authorities

39.

• (a) any additional own funds requirement imposed pursuant to Regulation 35(1)(a) for an investment firm that falls under the scope of Directive 2014/59/EU, and

• (b) any expectation for adjustments as referred to in Regulation 37(2) in respect to such an investment firm.

Publication requirements

40.

• (a) require—

• (i) an investment firm that does not meet the conditions for qualifying as a small and non- interconnected investment firm set out in Article 12(1) of Regulation (EU) 2019/2033, and

• (ii) an investment firm referred to in Article 46(2) of that Regulation,

to publish the information referred to in Article 46 of that Regulation more than once a year and to set deadlines for that publication,

• (b) require—

• (i) an investment firm that does not meet the conditions for qualifying as a small and non- interconnected investment firm set out in Article 12(1) of Regulation (EU) 2019/2033, and

• (ii) an investment firm referred to in Article 46(2) of Regulation (EU) 2019/2033,

to use specific media and locations, in particular the investment firm’s website, for publications other than the financial statements, or

• (c) require a parent undertaking to publish annually, either in full or by way of references to equivalent information, a description of its legal structure and the governance and organisational structure of the investment firm group in accordance with Regulation 23(1) and with Article 10 of Directive 2014/65/EU.

Obligation to inform EBA

41.

• (a) their review and evaluation process referred to in Regulation 32,

• (b) the methodology used for decisions referred to in Regulations 35, 36 and 37, and

• (c) the level of administrative sanctions laid down by the State, referred to in Regulation 16 and section 33AQ of the Act of 1942.

Chapter 3 Supervision of investment firm groups

Determination of the group supervisor

42.

• (2) Where—

• (a) the Bank is the competent authority in respect of an investment firm, and

• (b) the parent undertaking of the investment firm is a Union parent investment holding company or a Union parent mixed financial holding company,

the Bank shall exercise supervision on a consolidated basis or supervision of compliance with the group capital test.

• (3) Where—

• (a) two or more investment firms authorised in two or more Member States, one of which is the State, have as their parent—

• (i) the same Union parent investment holding company, or

• (ii) the same Union parent mixed financial holding company, and

• (b) the Bank is the competent authority in respect of the investment firm authorised in the Member State in which the investment holding company or mixed financial holding company is established,

the Bank shall exercise supervision on a consolidated basis or supervision of compliance with the group capital test.

• (4) Where—

• (a) the parent undertakings of two or more investment firms authorised in two or more Member States, one of which is the State, comprise more than one investment holding company or mixed financial holding company with head offices in different Member States,

• (b) there is an investment firm in each of those Member States, and

• (c) the Bank is the competent authority in respect of the investment firm with the largest balance sheet total,

the Bank shall exercise supervision on a consolidated basis or supervision of compliance with the group capital test.

• (5) Where—

• (a) two or more investment firms authorised in the European Union, at least one of which is authorised in the State, have as their parent the same Union investment holding company or Union mixed financial holding company,

• (b) none of those investment firms has been authorised in the Member State in which the investment holding company or mixed financial holding company was set up, and

• (c) the Bank is the competent authority in respect of the investment firm with the largest balance sheet total,

the Bank shall exercise supervision on a consolidated basis or supervision of compliance with the group capital test.

• (6) The Bank may, with the competent authorities of other Member States—

• (a) decide to disapply paragraphs (3), (4) and (5), where their application would not be appropriate for the effective supervision on a consolidated basis or supervision of compliance with the group capital test, taking into account the investment firms concerned and the importance of their activities in the relevant Member States, and

• (b) designate a competent authority to exercise supervision on a consolidated basis or supervision of compliance with the group capital test.

• (7) The Bank, together with the other competent authorities concerned, shall, before making a decision under paragraph (6), give—

• (a) the Union parent investment holding company,

• (b) the Union parent mixed financial holding company, or

• (c) the investment firm with the largest balance sheet total,

as the case may be, an opportunity to state its opinion on that intended decision.

• (8) The Bank, together with the other competent authorities concerned, shall, notify the Commission and EBA of any decision made under paragraph (6).

Information requirements in emergency situations

43.

• (a) an emergency situation arises which potentially jeopardises the market liquidity and the stability of the financial system in any of the Member States where entities of an investment firm group have been authorised, and

• (b) the Bank is the group supervisor in accordance with Regulation 42, the Bank shall, subject to Regulations 13, 14 and 15, alert, as soon as practicable, EBA, ESRB and any relevant competent authorities and shall communicate all information essential for the performance of their tasks.

• (2) In this Regulation, “emergency situation” includes—

• (a) a situation as described in Article 18 of Regulation (EU) No 1093/2010, and

• (b) a situation of adverse developments in markets.

Colleges of supervisors

44.

• (2) Where the Bank establishes a college of supervisors, the college of supervisors shall establish a framework for the Bank (in its role as group supervisor), EBA and the other competent authorities concerned for the purposes of carrying out the following tasks:

• (a) the tasks referred to in Regulation 43;

• (b) the coordination of information requests where this is necessary for facilitating supervision on a consolidated basis, in accordance with Article 7 of Regulation (EU) 2019/2033;

• (c) the coordination of information requests, in cases where several competent authorities of investment firms that are part of the same group need to request, either from the competent authority of a clearing member’s home Member State or from the competent authority of the qualifying central counterparty, information relating to the margin model and parameters used for the calculation of the margin requirement of the relevant investment firms;

• (d) the exchange of information between all competent authorities and with EBA in accordance with Article 21 of Regulation (EU) No 1093/2010 and with ESMA in accordance with Article 21 of Regulation (EU) No 1095/2010;

• (e) reaching an agreement on the voluntary delegation between competent authorities of tasks and responsibilities, where appropriate;

• (f) increasing the efficiency of supervision by seeking to avoid the unnecessary duplication of supervisory requirements.

• (3) The Bank shall be a member of a college of supervisors where it is a competent authority responsible for the supervision of a subsidiary of an investment firm group headed by an Union investment firm, Union parent investment holding company or Union parent mixed financial holding company.

• (4) Where the Bank is the group supervisor in accordance with Regulation 42, it shall—

• (a) chair the meetings of the college of supervisors,

• (b) adopt decisions,

• (c) keep all members of the college of supervisors fully informed in advance of the organisation of those meetings, of the main issues to be discussed and of the activities to be considered,

• (d) keep all the members of the college of supervisors fully informed, in a timely manner, of the decisions adopted in those meetings or the measures carried out, and

• (e) take account of the relevance of the supervisory activity to be planned or coordinated by the authorities referred to in Article 48(5) of the Investment Firms Directive when adopting decisions.

• (5) The establishment and functioning of a college of supervisors shall be formalised by means of written arrangements.

• (6) Where the Bank participates in a college of supervisors, but is not the group supervisor, and it disagrees with a decision adopted by the group supervisor on the functioning of colleges of supervisors, the Bank may refer the matter to EBA and request EBA’s assistance in accordance with Article 19 of Regulation (EU) No 1093/2010.

Cooperation requirements

45.

• (a) identification of the investment firm group’s legal and governance structure, including its organisational structure, covering all regulated and non- regulated entities, non- regulated subsidiaries and the parent undertakings, and of the competent authorities of the regulated entities in the investment firm group;

• (b) procedures for the collection of information from the investment firms in an investment firm group, and the procedures for the verification of that information;

• (c) any adverse developments in investment firms or in other entities of an investment firm group, which could seriously affect those investment firms;

• (d) any significant sanctions and exceptional measures taken by the Bank in accordance with these Regulations;

• (e) the imposition of a specific own funds requirement under Regulation 35.

• (2) The Bank may refer to the EBA, in accordance with Article 19(1) of Regulation (EU) No 1093/2010, where—

• (a) relevant information has not been communicated in accordance with Article 49(1) of the Investment Firms Directive without undue delay, or

• (b) a request for cooperation, in particular to exchange relevant information, has been rejected or has not been acted upon within a reasonable period of time.

• (3) Subject to paragraph (5), the Bank shall, before adopting a decision that may be important for other competent authorities’ supervisory tasks, consult those other competent authorities on the following:

• (a) changes in the shareholder, organisational or management structure of investment firms in an investment firm group, which require the approval or authorisation of competent authorities;

• (b) significant sanctions imposed on investment firms by competent authorities or any other exceptional measures taken by those authorities;

• (c) specific own funds requirements imposed in accordance with Regulation 35.

• (4) The Bank shall consult the group supervisor where significant sanctions are to be imposed or any other exceptional measures are to be taken by the Bank, as referred to in paragraph (3)(b).

• (5) The Bank shall not be required to consult other competent authorities in cases of urgency or where such consultation could jeopardise the effectiveness of its decision.

• (6) Where paragraph (5) applies, the Bank shall inform the other competent authorities concerned of the decision not to consult without delay.

Verification of information concerning entities located in other Member States

46.

• (a) a competent authority in a Member State other than the State needs to verify information about—

• (i) an investment firm,

• (ii) an investment holding company,

• (iii) a mixed financial holding company,

• (iv) a financial institution,

• (v) an ancillary services undertaking,

• (vi) a mixed- activity holding company, or

• (vii) a subsidiary that is located in the State, including a subsidiary which is an insurance company, and

• (b) makes a request to that effect,

the Bank shall carry out that verification in accordance with paragraph (2).

• (2) Where the Bank has received a request referred to in paragraph (1), it shall do one or more of the following:

• (a) carry out the verification itself within the framework of its competence;

• (b) allow the competent authority who made that request to carry out the verification;

• (c) request an auditor or expert to carry out the verification impartially and to report the results promptly.

• (3) A competent authority of another Member State that has made a request referred to in paragraph (1) shall be allowed to participate in a verification where the Bank proceeds in accordance with paragraph (2)(a) or (c).

Inclusion of holding companies in supervision of compliance with group capital test

47.

Qualifications of directors

48.

Mixed- activity holding companies

49.

• (a) require that the mixed- activity holding company supply the Bank with any information that may be relevant for the supervision of that investment firm, and

• (b) supervise transactions between the investment firm and the mixed- activity holding company and the subsidiaries of the latter, and require the investment firm to have in place adequate risk management processes and internal control mechanisms, including sound reporting and accounting procedures to identify, measure, monitor and control those transactions.

• (2) The Bank may carry out, or have carried out by external inspectors, on- the- spot inspections to verify the information received from mixed- activity holding companies and their subsidiaries.

Assessment of third- country supervision and other supervisory techniques

50.

• (2) Where the assessment referred to in paragraph (1) concludes that no such equivalent supervision applies, the Bank shall take appropriate measures to achieve the objectives of supervision in accordance with Article 7 or 8 of Regulation (EU) 2019/2033.

• (3) Where the Bank would have been the group supervisor had the parent undertaking been established in the European Union, the measures referred to in paragraph (2) shall be decided by the Bank, after consulting the other competent authorities involved.

• (4) Where the Bank takes any measures under paragraph (2), it shall notify—

• (a) the other competent authorities involved,

• (b) the EBA, and

• (c) the European Commission.

• (5) The Bank may, where it would have been the group supervisor had the parent undertaking been established in the European Union, in particular, require the establishment of an investment holding company or mixed financial holding company in the European Union and apply Article 7 or 8 of Regulation (EU) 2019/2033 to that investment holding company or mixed financial holding company, as the case may be.

Part 5 PUBLICATION

Publication requirements

51.

• (a) the texts of laws, regulations, administrative rules and general guidance adopted in the State pursuant to the Investment Firms Directive;

• (b) the manner of exercise of the options and discretions available pursuant to the Investment Firms Directive and to Regulation (EU) 2019/2033;

• (c) the general criteria and methodologies the Bank applies in the supervisory review and evaluation referred to in Regulation 32;

• (d) aggregate statistical data on key aspects of the implementation of these Regulations and of Regulation (EU) 2019/2033 in the State, including the number and nature of—

• (i) supervisory measures taken in accordance with Regulation 35(1)(a), and

• (ii) administrative sanctions imposed in accordance with Regulation 16 and Part IIIC of the Act of 1942.

• (2) The information published in accordance with paragraph (1) shall be sufficiently comprehensive and accurate to enable a meaningful comparison of the application of paragraph (1)(b), (c) and (d) by the Bank with the application by competent authorities in other Member States of the laws of those Member States giving effect to points (b), (c) and (d) of Article 57 of the Investment Firms Directive.

• (3) The Bank shall, when publishing information under paragraph (1), follow a common format, as determined in the implementing standards adopted by the European Commission under Article 57(4) of the Investment Firms Directive.

• (4) The Bank shall regularly update the information published under paragraph (1).

Part 6 AMENDMENTS OF OTHER ENACTMENTS

Amendment of Act of 1942

52.

• (a) in section 33AK(10), in the definition of “supervisory EU legal acts”—

• (i) by renumbering the second paragraph (ai) as paragraph (aj), and

• (ii) by the insertion of the following paragraph after paragraph (aj) (as renumbered by subparagraph (i)):

• “(ak) Regulation (EU) 2019/2033 of the European Parliament and Council of 27 November 2019⁴ ;”,

• (b) in section 33BC, by the insertion of the following subsection after subsection (15):

• “(16) This section shall not apply where Regulation 17 of the European Union (Investment Firms) Regulations 2021 ( S.I. No. 355 of 2021 ) applies.”,

• (c) by the insertion of the following section after section 33ANF:

“Application of Part under Investment Firms Directive

33ANG.(1) This Part applies in relation to—

• (a) the commission or suspected commission by an investment holding company, a mixed financial holding company or a mixed activity holding company of a contravention of—

  • (i) a relevant provision,

  • (ii) any direction given to an investment holding company, a mixed financial holding company or a mixed activity holding company under a relevant provision,

  • (iii) any direction given under financial services legislation to the investment holding company, mixed financial holding company or mixed activity holding company pursuant to a relevant provision,

  • (iv) any requirement imposed on an investment holding company, a mixed financial holding company or a mixed activity holding company under—

    • (I) a relevant provision,

    • (II) any direction given to an investment holding company, a mixed financial holding company or a mixed activity holding company under a relevant provision, or

    • (III) any direction given under financial services legislation to the investment holding company, mixed financial holding company or mixed activity holding company pursuant to a relevant provision,

    or

  • (v) any obligation imposed on an investment holding company, a mixed financial holding company or a mixed activity holding company by this Part or imposed by the Bank pursuant to a power exercised under this Part,

  and

• (b) participation, by a person concerned in the management of an investment holding company, a mixed financial holding company or a mixed activity holding company, in the commission of such a contravention.

• (2) For the purpose of subsection (1)—

  • (a) a reference in this Part to a regulated financial service provider or a financial service provider includes a reference to an investment holding company, a mixed financial holding company or a mixed activity holding company,

  • (b) a reference in this Part to a prescribed contravention includes a reference to a contravention, by an investment holding company, a mixed financial holding company or a mixed activity holding company, of a provision, direction, requirement or obligation referred to in subsection (1), and

  • (c) a reference in this Part to a person concerned in the management of a regulated financial service provider includes a reference to a person concerned in the management of an investment holding company, a mixed financial holding company or a mixed activity holding company.

• (3) Nothing in this section limits the application of this Part in relation to matters other than those referred to in subsection (1).

• (4) In this section—

‘investment holding company’ has the same meaning as it has in the Regulations of 2021;

‘mixed financial holding company’ has the same meaning as it has in the Regulations of 2021;

‘mixed activity holding company’ has the same meaning as it has in the Regulations of 2021;

‘Regulations of 2021’ means the European Union (Investment Firms) Regulations 2021;

‘relevant provisions’ means a provision of Regulations 42 to 50 of the Regulations of 2021.”, and

• (d) in Part 2 of Schedule 2, by the insertion of the following item:

“

78	S.I. No. 355 of 2021	European Union (Investment Firms) Regulations 2021	The whole instrument

”.

Amendment of Central Bank Act 1971

53.

• (a) in section 2, in subsection (1), by the substitution of the following definition for the definition of “Capital Requirements Directive”:

“ ‘Capital Requirements Directive’ means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013⁵ on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC as amended by—

• (a) Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014⁶ on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010,

• (b) Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014⁷ establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council,

• (c) Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015⁸ on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC,

• (d) Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018⁹ amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, and amending Directives 2009/138/EC and 2013/36/EU,

• (e) Directive (EU) 2019/878 of the European Parliament and of the Council of 20 May 2019¹⁰ amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures, and

• (f) Directive (EU) 2019/2034 of the European Parliament and Council of 27 November 2019¹¹ on the prudential supervision of investment firms and amending Directives 2002/87/EC, 2009/65/EC, 2011/61/EU, 2013/36/EU, 2014/59/EU and 2014/65/EU;”, and

• (b) in section 11(1)(a)—

• (i) in subparagraph (x), by the substitution of “by its depositors,” for “by its depositors, or”,

• (ii) in subparagraph (xi), by the substitution of “( S.I. No. 158 of 2014 ), or” for “( S.I. No. 158 of 2014 ).”, and

• (iii) by the insertion of the following subparagraph after subparagraph (xi):

• “(xii) uses its licence exclusively to engage in the activities referred to in point (1)(b) of Article 4(1) of the Capital Requirements Regulation and has, for a period of five consecutive years, average total assets below the thresholds set out in that Article.”.

Amendment of Criminal Justice (Money Laundering and Terrorist Financing) Act 2010

54.

“ ‘Directive of 2009’ means Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009¹² , as amended by—

• (a) Directive 2010/78/EU of the European Parliament and of the Council of 24 November 2010¹³ ,

• (b) Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011¹⁴ ,

• (c) Directive 2013/14/EU of the European Parliament and of the Council of 21 May 2013¹⁵ ,

• (d) Directive 2014/91/EU of the European Parliament and of the Council of 23 July 2014¹⁶ ,

• (e) Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017¹⁷ ,

• (f) Directive (EU) 2019/1160 of the European Parliament and of the Council of 20 June 2019¹⁸ ,

• (g) Directive (EU) 2019/2034 of the European Parliament and of the Council of 20 June 2019¹⁹ , and

• (h) Directive (EU) 2019/2162 of the European Parliament and of the Council of 27 November 2019²⁰ ;”.

Amendment of European Communities (Financial Conglomerates) Regulations 2004

55.

• (a) by the substitution of the following definition for the definition of “sectoral rules”:

“ ‘sectoral rules’ means legislation made by the European Union relating to the prudential supervision of regulated entities, in particular—

• (a) Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013²¹ ,

• (b) Regulation (EU) No. 2019/2033 of the European Parliament and of the Council of 27 November 2019²² ,

• (c) the Insurance and Reinsurance Directive,

• (d) the Capital Requirements Directive,

• (e) Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014²³ , and

• (f) Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019²⁴ ; ”,

• (b) by the substitution of the following definition for the definition of “Capital Requirements Directive”:

“ ‘Capital Requirements Directive’ means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013²⁵ on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC as amended by—

• (a) Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014²⁶ on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010,

• (b) Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014²⁷ establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council,

• (c) Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015²⁸ on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC,

• (d) Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018²⁹ amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, and amending Directives 2009/138/EC and 2013/36/EU,

• (e) Directive (EU) 2019/878 of the European Parliament and of the Council of 20 May 2019³⁰ amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures, and

• (f) Directive (EU) 2019/2034 of the European Parliament and Council of 27 November 2019³¹ on the prudential supervision of investment firms and amending Directives 2002/87/EC, 2009/65/EC, 2011/61/EU, 2013/36/EU, 2014/59/EU and 2014/65/EU;”, and

• (c) by the substitution of the following definition for “Financial Conglomerates Directive”:

“ ‘Financial Conglomerates Directive’ means Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002³² , as amended by;

• (a) Directive 2005/1/EC of the European Parliament and of the Council of 9 March 2005³³ ,

• (b) Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006³⁴ ,

• (c) Directive 2008/25/EC of the European Parliament and of the Council of 11 March 2008³⁵ ,

• (d) Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009³⁶ ,

• (e) Directive 2010/78/EU of the European Parliament and of the Council of 24 November 2010³⁷ ,

• (f) Directive 2011/89/EU of the European Parliament and of the Council of 16 November 2011³⁸ ,

• (g) Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013³⁹ ,

• (h) Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019⁴⁰ ;”.

Amendment of European Communities (Insurance and Reinsurance Groups Supplementary Supervision) Regulations 2007

56.

“ ‘Financial Conglomerates Directive’ means Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002⁴¹ , as amended by;

• (a) Directive 2005/1/EC of the European Parliament and of the Council of 9 March 2005⁴² ,

• (b) Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006⁴³ ,

• (c) Directive 2008/25/EC of the European Parliament and of the Council of 11 March 2008⁴⁴ ,

• (d) Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009⁴⁵ ,

• (e) Directive 2010/78/EU of the European Parliament and of the Council of 24 November 2010⁴⁶ ,

• (f) Directive 2011/89/EU of the European Parliament and of the Council of 16 November 2011⁴⁷ ,

• (g) Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013⁴⁸ ,

• (h) Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019⁴⁹ ;”.

Amendment of European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011

57.

• (a) in Regulation 3, in paragraph (1), by the substitution of the following definition for the definition of “Directive”:

“ ‘Directive’ means Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009⁵⁰ , as amended by—

• (a) Directive 2010/78/EU of the European Parliament and of the Council of 24 November 2010⁵¹ ,

• (b) Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011⁵² ,

• (c) Directive 2013/14/EU of the European Parliament and of the Council of 21 May 2013⁵³ ,

• (d) Directive 2014/91/EU of the European Parliament and of the Council of 23 July 2014⁵⁴ ,

• (e) Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017⁵⁵ ,

• (f) Directive (EU) 2019/1160 of the European Parliament and of the Council of 20 June 2019⁵⁶ ,

• (g) Directive (EU) 2019/2034 of the European Parliament and of the Council of 20 June 2019⁵⁷ , and

• (h) Directive (EU) 2019/2162 of the European Parliament and of the Council of 27 November 2019⁵⁸ ;”,

• (b) in Regulation 17, by the substitution of the following paragraph for paragraph (6):

• “(6) The own funds of the management company shall never be less than the amount prescribed in Article 13 of Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019⁵⁹ .”, and

• (c) in Regulation 35(4)(a), by the substitution of “Article 9(1) of Directive (EU) 2019/2034 of the European Parliament and Council of 27 November 2019⁶⁰ ” for “Article 28(2) Directive 2013/36/EU”.

Amendment of European Union (Alternative Investment Fund Managers) Regulations 2013

58.

• (a) in Regulation 5(1), by the substitution of the following definition for the definition of “Directive”:

“ ‘Directive’ means Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011⁶¹ , as amended by—

• (a) Directive 2013/14/EU of the European Parliament and of the Council of 21 May 2013⁶² ,

• (b) Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014⁶³ ,

• (c) Directive (EU) 2016/2341 of the European Parliament and of the Council of 14 December 2016⁶⁴ ,

• (d) Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017⁶⁵ ,

• (e) Directive (EU) 2019/1160 of the European Parliament and of the Council of 20 June 2019⁶⁶ , and

• (f) Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019⁶⁷ ;”, and

• (b) in Regulation 10(5), by the substitution of the following paragraph for paragraph (5):

• “(5) Irrespective of paragraph (3), the own funds of the AIFM shall never be less than the amount required under Article 13 of Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019⁶⁸ .”.

Amendment of European Union (Capital Requirements) Regulations 2014

59.

• (a) in Regulation 2—

• (i) by the deletion of paragraphs (2) and (3),

• (ii) in paragraph (5), by the deletion of subparagraph (a), and

• (iii) in paragraph (6), by the substitution of “paragraph (5)(c), (d) and (e)” for “paragraph (5)(a), (c), (d) and (e)”,

• (b) in Regulation 3(1)—

• (i) by the deletion of the definition of “local firm”, and

• (ii) by the substitution of the following definition for the definition of “Directive 2002/87/EC”:

“ ‘Directive 2002/87/EC’ means Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002⁶⁹ , as amended by;

• (a) Directive 2005/1/EC of the European Parliament and of the Council of 9 March 2005⁷⁰ ,

• (b) Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006⁷¹ ,

• (c) Directive 2008/25/EC of the European Parliament and of the Council of 11 March 2008⁷² ,

• (d) Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009⁷³ ,

• (e) Directive 2010/78/EU of the European Parliament and of the Council of 24 November 2010⁷⁴ ,

• (f) Directive 2011/89/EU of the European Parliament and of the Council of 16 November 2011⁷⁵ ,

• (g) Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013⁷⁶ ,

• (h) Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019⁷⁷ ;”,

• (iii) by the substitution of the following definition for the definition of “Directive 2009/65/EC”:

“ ‘Directive 2009/65/EC’ means Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009⁷⁸ , as amended by—

• (a) Directive 2010/78/EU of the European Parliament and of the Council of 24 November 2010⁷⁹ ,

• (b) Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011⁸⁰ ,

• (c) Directive 2013/14/EU of the European Parliament and of the Council of 21 May 2013⁸¹ ,

• (d) Directive 2014/91/EU of the European Parliament and of the Council of 23 July 2014⁸² ,

• (e) Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017⁸³ ,

• (f) Directive (EU) 2019/1160 of the European Parliament and of the Council of 20 June 2019⁸⁴ ,

• (g) Directive (EU) 2019/2034 of the European Parliament and of the Council of 20 June 2019⁸⁵ , and

• (h) Directive (EU) 2019/2162 of the European Parliament and of the Council of 27 November 2019⁸⁶ ;”,

• (c) in Regulation 9I, by the substitution of the following for paragraph (6):

• “(6) For the purposes of this Regulation—

  • (a) the total value of assets in the European Union of a third-country group shall be the sum of—

    • (i) the total value of assets of each institution in the European Union in the third-country group, as resulting from its consolidated balance sheet or as resulting from their individual balance sheet, where an institution’s balance sheet is not consolidated, and

    • (ii) the total value of assets of each branch of the third-country group authorised in the European Union in accordance with the Capital Requirements Directive, Regulation (EU) No 600/2014 of the European Parliament and of the Council or Directive 2014/65/EU, and

  • (b) a reference to an institution shall include a reference to an investment firm.”,

• (d) by the deletion of Part 4,

• (e) in Regulation 47(1), by the deletion of “(other than an investment firm subject to Article 95 of the Capital Requirements Regulation)”,

• (f) in Regulation 54(2),

• (i) in paragraph (e), by the substitution of “with a requirement under Chapter 1A of Part 3;” for “with a requirement under Chapter 1A of Part 3.”, and

• (ii) by the insertion of the following subparagraph after subparagraph (e):

• “(f) carrying out at least one of the activities referred to in point (1)(b) of Article 4(1) of Regulation (EU) No 575/2013 and meeting the threshold indicated in that Article without being authorised as a credit institution.”,

• (g) in Regulation 64, by the deletion of paragraph (22),

• (h) in Regulation 74—

• (i) in paragraph (9), in subparagraph (h), by the deletion of “in order”, and

• (ii) by the substitution the following paragraph for paragraph (11):

• “(11) The operational steps, referred to in paragraph (9)(j), shall include holding collateral immediately available for central bank funding which shall include holding collateral in the currency of another Member State where necessary, or the currency of a third country to which the institution has exposures, and where operationally necessary within the territory of a host Member State or of a third country to whose currency it is exposed.”,

• (i) in Regulation 98, by the deletion of paragraph (2),

• (j) in Regulation 99—

• (i) in paragraph (4)—

• (I) in subparagraph (a), by the substitution of “parent undertaking of a credit institution or an investment firm” for “parent undertaking of an institution”, and

• (II) in subparagraph (b), by the substitution of “supervises the credit institution or investment firm” for “supervises the institution”,

• (ii) in paragraph (5)(a), by the substitution of “two or more credit institutions or investment firms” for “two or more institutions”,

• (iii) in paragraph (9)(a), by the substitution of “taking into account the credit institutions or investment firms concerned” for “taking into account the institutions concerned”,

• (iv) in paragraph (10)(a), by the substitution of “taking into account the credit institutions or investment firms concerned” for “taking into account the institutions concerned”, and

• (v) in paragraph (11), by the substitution of “the credit institution or investment firm with the largest balance sheet total” for “the institution with the largest balance sheet total”,

• (k) in Regulation 102, by the substitution of the following paragraph for paragraph (1):

• “(1) Where an emergency situation arises, including a situation as described in Article 18 of Regulation (EU) No 1093/2010, or a situation of adverse developments in markets, which potentially jeopardises the market liquidity and the stability of the financial system in any of the Member States where entities of a group have been authorised or where significant branches, as referred to in Regulation 47, are established, the Bank, where it is responsible for supervision on a consolidated basis, shall, subject to—

  • (a) section 33AK of the Act of 1942,

  • (b) Regulations 50A, 50B and 51, and

  • (c) where applicable, Regulations 13, 14 and 15 of the European Union (Investment Firms) Regulations 2021 ( S.I. No. 355 of 2021 ),

  alert, as soon as is practicable, the EBA and the authorities referred to in Articles 58(4) and 59 of the Capital Requirements Directive and shall communicate all information essential for the pursuance of their tasks.”,

• (l) in Regulation 104—

• (i) by the substitution of the following paragraph for paragraph (3):

• “(3) The Bank, when participating in the colleges of supervisors, shall cooperate closely with the other competent authorities, and the confidentiality requirements under—

  • (a) section 33AK of the Act of 1942,

  • (b) Regulations 50A, 50B and 51, and

  • (c) where applicable, Regulations 13, 14 and 15 of the European Union (Investment Firms) Regulations 2021,

  shall not prevent the Bank from exchanging confidential information within colleges of supervisors.”,

• (ii) in paragraph (5), by the substitution of the following subparagraph for subparagraph (d):

• “(d) third countries’ competent authorities, where appropriate, and subject to confidentiality requirements that are equivalent, in the opinion of all participating competent authorities in Member States, to the requirements under Articles 53 to 62 of the Capital Requirements Directive and, where applicable, Section 2 of Chapter 1 of Title IV of Directive (EU) 2019/2034;”, and

• (iii) by the substitution of the following paragraph for paragraph (8):

• “(8) Where the Bank is the chair of a college of supervisors, it shall, subject to the confidentiality requirements of—

  • (a) section 33AK of the Act of 1942,

  • (b) Regulations 50A, 50B and 51, and

  • (c) where applicable, Regulations 13, 14 and 15 of the European Union (Investment Firms) Regulations 2021,

  inform the EBA of the activities of the college, including in emergency situations, and shall communicate to the EBA all information that is of particular relevance for the purposes of supervisory convergence.”,

• (m) in Regulation 113, in paragraph (3)—

• (i) by the substitution of “Information received within” for “Information received, within”, and

• (ii) by the substitution of “under Article 15 of Directive (EU) 2019/2034” for “under Directive 2004/39/EC.”,

• (n) by the deletion of Regulation 116,

• (o) by the deletion of Regulation 120, and

• (p) in Regulation 131(1), by the substitution of the following subparagraph for subparagraph (d):

• “(d) without prejudice to the provisions set out in—

• (i) section 33AK of the Act of 1942,

• (ii) Regulations 50A, 50B and 51, and

• (iii) where applicable, Regulations 13, 14 and 15 of the European Union (Investment Firms) Regulations 2021,

aggregate statistical data on key aspects of the implementation of the prudential framework in the State, including the number and nature of supervisory measures taken in accordance with Regulation 90(1) and of administrative penalties imposed in accordance with Regulation 53 or other financial services legislation.”.

Amendment of European Union (Credit Institutions: Financial Statements) Regulations 2015

60.

“ ‘Capital Requirements Directive’ means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013⁸⁷ on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC as amended by—

• (a) Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014⁸⁸ on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010,

• (b) Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014⁸⁹ establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council,

• (c) Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015⁹⁰ on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC,

• (d) Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018⁹¹ amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, and amending Directives 2009/138/EC and 2013/36/EU,

• (e) Directive (EU) 2019/878 of the European Parliament and of the Council of 20 May 2019⁹² amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures, and

• (f) Directive (EU) 2019/2034 of the European Parliament and Council of 27 November 2019⁹³ on the prudential supervision of investment firms and amending Directives 2002/87/EC, 2009/65/EC, 2011/61/EU, 2013/36/EU, 2014/59/EU and 2014/65/EU;”.

Amendment of European Union (Bank Recovery and Resolution) Regulations 2015

61.

• (a) in Regulation 3(1)—

• (i) by the substitution of the following definition for the definition of “Bank Recovery and Resolution Directive”:

“ ‘Bank Recovery and Resolution Directive’ means Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014⁹⁴ as amended by—

• (a) Directive (EU) 2017/1132 of the European Parliament and of the Council of 14 June 2017⁹⁵ ,

• (b) Directive (EU) 2017/2399 of the European Parliament and of the Council of 12 December 2017⁹⁶ ,

• (c) Directive (EU) 2019/879 of the European Parliament and of the Council of 20 May 2019⁹⁷ ,

• (d) Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019⁹⁸ , and

• (e) Directive (EU) 2019/2162 of the European Parliament and of the Council of 27 November 2019⁹⁹ ;”,

• (ii) by the substitution of the following definition for the definition of “Capital Requirements Directive”:

“ ‘Capital Requirements Directive’ means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013¹⁰⁰ on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC as amended by—

• (a) Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014¹⁰¹ on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010,

• (b) Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014¹⁰² establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council,

• (c) Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015¹⁰³ on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC,

• (d) Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018¹⁰⁴ amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, and amending Directives 2009/138/EC and 2013/36/EU,

• (e) Directive (EU) 2019/878 of the European Parliament and of the Council of 20 May 2019¹⁰⁵ amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures, and

• (f) Directive (EU) 2019/2034 of the European Parliament and Council of 27 November 2019¹⁰⁶ on the prudential supervision of investment firms and amending Directives 2002/87/EC, 2009/65/EC, 2011/61/EU, 2013/36/EU, 2014/59/EU and 2014/65/EU;”,

• (iii) by the substitution of the following definition for the definition of “Directive 2009/65/EC”:

“ ‘Directive 2009/65/EC’ means Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009¹⁰⁷ , as amended by—

• (a) Directive 2010/78/EU of the European Parliament and of the Council of 24 November 2010¹⁰⁸ ,

• (b) Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011¹⁰⁹ ,

• (c) Directive 2013/14/EU of the European Parliament and of the Council of 21 May 2013¹¹⁰ ,

• (d) Directive 2014/91/EU of the European Parliament and of the Council of 23 July 2014¹¹¹ ,

• (e) Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017¹¹² ,

• (f) Directive (EU) 2019/1160 of the European Parliament and of the Council of 20 June 2019¹¹³ ,

• (g) Directive (EU) 2019/2034 of the European Parliament and of the Council of 20 June 2019¹¹⁴ , and

• (h) Directive (EU) 2019/2162 of the European Parliament and of the Council of 27 November 2019¹¹⁵ ;”, and

• (iv) by the substitution of the following definition for the definition of “investment firm”:

“ ‘investment firm’ means an investment firm, as defined in point (22) of Article 4(1) of Regulation (EU) 2019/2033 of the European Parliament and of the Council which is subject to the initial capital requirement in Article 9(1) of Directive (EU) 2019/2034 of the European Parliament and of the Council;”, and

• (b) in Regulation 80B, by the insertion of the following paragraphs after paragraph (2):

• “(3) In accordance with Article 65 of Regulation (EU) 2019/2033, references to Article 92 of the Union Capital Requirements Regulation in these Regulations as regards the own funds requirements on an individual basis of investment firms which are not investment firms referred to in Article 1(2) or (5) of Regulation (EU) 2019/2033 shall be construed as follows:

  • (a) references to point (c) of Article 92(1) of the Union Capital Requirements Regulation as regards the total capital ratio requirement in these Regulations shall be construed as referring to Article 11(1) of Regulation (EU) 2019/2033;

  • (b) references to Article 92(3) of the Union Capital Requirements Regulation as regards the total risk exposure amount in these Regulations shall be construed as referring to the applicable requirement in Article 11(1) of Regulation (EU) 2019/2033, multiplied by 12.5.

• (4) In accordance with Article 65 of Directive (EU) 2019/2034, references in these Regulations to Regulation 92A of the Capital Requirements Regulations as regards additional own funds requirements of investment firms which are not investment firms referred to in Article 1(2) or (5) of Regulation (EU) 2019/2033 shall be construed as referring to Regulation 36 of the European Union (Investment Firms) Regulations 2021 ( S.I. No. 355 of 2021 ).”.

Amendment of European Union (Insurance and Reinsurance) Regulations 2015

62.

“ ‘Directive 2002/87/EC’ means Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002¹¹⁶ , as amended by;

• (a) Directive 2005/1/EC of the European Parliament and of the Council of 9 March 2005¹¹⁷ ,

• (b) Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006¹¹⁸ ,

• (c) Directive 2008/25/EC of the European Parliament and of the Council of 11 March 2008¹¹⁹ ,

• (d) Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009¹²⁰ ,

• (e) Directive 2010/78/EU of the European Parliament and of the Council of 24 November 2010¹²¹ ,

• (f) Directive 2011/89/EU of the European Parliament and of the Council of 16 November 2011¹²² ,

• (g) Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013¹²³ ,

• (h) Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019¹²⁴ ;”.

Amendment to MiFID Regulations

63.

• (a) in Regulation 3(1), by the substitution of the following definition for the definition of “Directive”:

“ ‘Directive’ means Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014¹²⁵ , as amended by—

• (a) Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014¹²⁶ ,

• (b) Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016¹²⁷ ,

• (c) Directive (EU) 2016/1034 of the European Parliament and of the Council of 23 June 2016¹²⁸ ,

• (d) Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019¹²⁹ , and

• (e) Regulation (EU) 2019/2115 of the European Parliament and of the Council of 27 November 2019¹³⁰ ;”,

• (b) in Regulation 4(3)(c), by the substitution of the following clause for clause (iii):

• “(iii) branches of investment firms or of credit institutions authorised in a third country and which are subject to and comply with prudential rules considered by the competent authorities to be at least as stringent as those specified in the Directive, the European Union (Capital Requirements) Regulations 2014 ( S.I. No. 158 of 2014 ), the European Union (Capital Requirements) (No. 2) Regulations 2014 ( S.I. No. 159 of 2014 ) or the European Union (Investment Firms) Regulations 2021 ( S.I. No. 355 of 2021 );”,

• (c) in Regulation 9, by the substitution of the following paragraph for paragraph (10):

• “(10) The Bank shall not grant an application for authorisation by an investment firm unless the investment firm has sufficient initial capital in accordance with the requirements of Regulation 8 of the European Union (Investment Firms) Regulations 2021, having regard to the nature of the investment services it seeks authorisation to provide.”,

• (d) in Regulation 13(1), by the substitution of the following subparagraph for subparagraph (e):

• “(e) no longer meets the conditions under which authorisation was granted, including, where applicable, the conditions specified in Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019¹³¹ ,”,

• (e) in Regulation 21(9), by the substitution of the following subparagraph for subparagraph (b):

• “(b) is a natural or legal person not subject to supervision under these Regulations or the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 ( S.I. No. 352 of 2011 ), the European Union (Insurance and Reinsurance) Regulations 2015 ( S.I. No. 485 of 2015 ), the European Union (Capital Requirements) Regulations 2014 or the European Union (Investment Firms) Regulations 2021.”,

• (f) in Regulation 22(1), by the substitution of the following subparagraph for subparagraph (d):

• “(d) whether the investment firm will be able to comply and continue to comply with the prudential requirements in these Regulations and, where applicable, prudential requirements based on Directives other than the Directive, in particular the European Communities (Financial Conglomerates) Regulations 2004 ( S.I. No. 727 of 2004 ), the European Union (Capital Requirements) Regulations 2014, the European Union (Capital Requirements) (No. 2) Regulations 2014 ( S.I. No. 159 of 2014 ), or the European Union (Investment Firms) Regulations 2021;”,

• (g) in Regulation 43(1), by the substitution of “in accordance with these Regulations, the European Union (Capital Requirements) Regulations 2014, and the European Union (Investment Firms) Regulations 2021” for “in accordance with these Regulations and European Union (Capital Requirements) Regulations 2014”,

• (h) in Regulation 50—

• (i) in paragraph (1)(b), by the substitution of “in paragraphs (2) and (6)” for “in paragraph (2)”, and

• (ii) by the insertion of the following paragraphs after paragraph (4):

• “(5) The Bank shall notify ESMA on an annual basis of the list of branches of third- country firms active in the State.

• (6) The branch of the third- country firm that is authorised in accordance with paragraph (1) shall report the following information to the Bank on an annual basis:

  • (a) the scale and scope of the services and activities carried out by the branch in the State;

  • (b) for third- country firms performing the activity specified in paragraph 3 of Part 1 of Schedule 1, their monthly minimum, average and maximum exposure to EU counterparties;

  • (c) for third- country firms providing one or both of the services specified in paragraph 6 of Part 1 of Schedule 1, the total value of financial instruments originating from EU counterparties underwritten or placed on a firm commitment basis over the previous 12 months;

  • (d) the turnover and the aggregated value of the assets corresponding to the services and activities referred to in subparagraph (a);

  • (e) a detailed description of the investor protection arrangements available to the clients of the branch, including the rights of those clients resulting from the investor- compensation scheme referred to in Regulation 48(2)(f);

  • (f) their risk management policy and arrangements applied by the branch for the services and activities referred to in subparagraph (a);

  • (g) the governance arrangements, including key function holders for the activities of the branch;

  • (h) any other information considered by the Bank to be necessary to enable comprehensive monitoring of the activities of the branch.

• (7) Upon request, the Bank shall communicate the following information to ESMA:

  • (a) all the authorisations for branches authorised in accordance with paragraph (1) and any subsequent changes to such authorisations;

  • (b) the scale and scope of the services and activities carried out by an authorised branch in the State;

  • (c) the turnover and the total assets corresponding to the services and activities referred to in subparagraph (b);

  • (d) the name of the third-country group to which an authorised branch belongs.

• (8) The Bank shall cooperate closely with the competent authorities of entities that are part of the same group to which branches of third- country firms authorised in accordance with paragraph (1) belong, ESMA and EBA to ensure that all activities of that group in the European Union are subject to comprehensive, consistent and effective supervision in accordance with the Directive, Regulation (EU) No 575/2013, Regulation (EU) No 600/2014, Regulation (EU) 2019/2033, Directive 2013/36/EU, and Directive (EU) 2019/2034.”,

• (i) in Regulation 51—

• (i) in paragraph (1), by the substitution of “by the third-country firm to that person, including” for “by the third-country firm to that person including”, and

• (ii) by the insertion of the following paragraph after paragraph (2):

• “(3) Without prejudice to intragroup relations, where a third- country firm, including through an entity acting on its behalf or having close links with such third- country firm or any other person acting on behalf of such entity, solicits clients or potential clients in the European Union, it shall not be deemed, for the purposes of paragraph (1), to be a service provided at the own exclusive initiative of the client.”,

• (j) in Regulation 73, by the insertion of the following paragraph after paragraph (2):

• “(3) The application of tick sizes shall not prevent regulated markets from matching orders large in scale at mid- point within the current bid and offer prices.”,

• (k) in Regulation 134(5), by the substitution of the following subparagraph for subparagraph (a):

• “(a) to check that the conditions governing the taking- up of the business of investment firms are met and to facilitate the monitoring of the conduct of that business, administrative and accounting procedures and internal- control mechanisms,”, and

• (l) by the insertion of the following Regulation after Regulation 144:

“Transitional provision on the authorisation of credit institution referred to in point (1)(b) of Article 4(1) of Regulation (EU) No 575/2013

144A. The Bank shall inform the competent authority to which an application for authorisation has been made in accordance with Article 8 of Directive 2013/36/EU where the envisaged total assets of an undertaking which has applied to the Bank for authorisation under Part 2 of these Regulations before 25 December 2019 in order to carry out the activities referred to in paragraphs 3 and 6 of Part 1 of Schedule 1 are equal to or exceed €30,000,000,000, and notify the applicant thereof.”.

Amendment of European Union (Payment Services) Regulations 2018

64.

“ ‘Directive 2013/36/EU’ means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013¹³² on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC as amended by—

• (a) Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014¹³³ on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010,

• (b) Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014¹³⁴ establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council,

• (c) Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015¹³⁵ on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC,

• (d) Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018¹³⁶ amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, and amending Directives 2009/138/EC and 2013/36/EU,

• (e) Directive (EU) 2019/878 of the European Parliament and of the Council of 20 May 2019¹³⁷ amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures, and

• (f) Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019¹³⁸ on the prudential supervision of investment firms and amending Directives 2002/87/EC, 2009/65/EC, 2011/61/EU, 2013/36/EU, 2014/59/EU and 2014/65/EU;”.

GIVEN under my Official Seal,

21 September, 2021.

PASCHAL DONOHOE,

Minister for Finance.

EXPLANATORY NOTE

(This note is not part of the Instrument and does not purport to be a legal interpretation.)

These Regulations give partial effect to Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019 on the prudential supervision of investment firms (the “Investment Firms Directive”). The Investment Firm Directive (IFD) and Regulation (IFR) puts in place a new prudential framework for Investment Firms authorised under Directive 2014/65/EU, the Markets in Financial Instruments Directive (MiFID II). The specific rules that will apply to a particular investment firm will depend on a firm’s classification under this new prudential framework.

Footnotes