Supplementary Supervisory Requirements
The Supplementary Supervisory Requirements for MiFID Investment Firms primarily relate to the submission of information by firms to the Central Bank so that the Central Bank can carry out its prudential supervisory function.
View the Supplementary Supervisory Requirements
Books & Records Requirements
The Central Bank has drawn up a list of the minimum records that MiFID Investment Firms are required to keep. (This list does not extend to record keeping requirements arising from other legislation.) The list of minimum records is non-exhaustive and should not be understood as a limitation of the scope of the records that might have to be maintained to ensure compliance with MiFID.
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Client Asset Requirements
These requirements set out the rights, duties and responsibilities of a firm in relation to client money and client financial instruments received and held by it arising from its investment business activities. A MiFID Investment Firm must firstly be authorised by the Central Bank to hold assets belonging to its clients. Where a firm is authorised to hold client assets, it must do so in accordance with the Client Asset Requirements and it is required to have its external auditors assess, at least on a six monthly basis, its compliance with these requirements.
View the Client Asset Requirements
Capital Requirements Directive
MiFID Investment Firms are required to calculate their capital requirements in accordance with the criteria outlined in the Capital Requirements Regulations. Firms are required to hold the minimum level of capital as calculated under the Regulations at all times and are required to submit capital returns to the Central Bank on a periodic basis.
Firms are also required under the Regulations to initiate the Internal Capital Adequacy Assessment Process. This process requires firms to assess the risks posed by their business, to assess the mitigants in place and to determine an appropriate level of capital for those risks. It is the responsibility of each firm to design and operate their own process. The Central Bank through its Supervisory Review and Evaluation Process will undertake an assessment of the firm’s internal process and this review will be proportionate to the nature, scale and complexity of the activities of the firm.
European Supervisory Authorities - Guidelines
Section 1.4 of the Central Bank's Regulatory Document Implementation of the CRD, issued in December 2006, requires MiFID Investment Firms subject to the CRD to ensure that their operations are consistent with the European Banking Authority (EBA) guidelines (previously the Committee of European Banking Supervisors or CEBS), unless otherwise instructed by the Central Bank.
MiFID Investment Firms should also ensure that their operations are consistent with guidelines issued by the European Securities and Markets Authority (ESMA), unless otherwise instructed by the Central Bank.
Please note that the following list of guidelines is not intended to be exhaustive and firms are advised to regularly review the EBA and ESMA websites for new and revised guidelines.
The following are letters issued by the Central Bank in relation to themed inspections conducted by the Central Bank on MiFID Investment Firms.
Implementation of MiFID
A joint Central Bank and Industry Working Group was established to prepare for the implementation of MiFID. The Working Group issued the MiFID - Feedback on Discussions of Conduct of Business Industry Working Group in question and answer format, as a guide to the provisions of the MiFID regulations.
Other regulatory requirements which investment intermediaries must comply with in the area of consumer protection are set out below: