Requirements and Guidance for MiFID Firms  

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. 

View the Books and Records Requirements

Client Asset Regulations

These regulations 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 Regulations and it is required to have its external auditors assess, at least on an annual basis, its compliance with these regulations.  

View the Client Asset Regulations

For further information view Client Assets and Investor Money

Guidance related to MiFID Firms

The Central Bank has issued guidance on a number of topics to assist users of the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Investment Firms) Regulations 2017 (“the Central Bank Investment Firms Regulations”), listed below.

The list of topics is as follows:

Investment Firms Q&A

The Investment Firms Q&A sets out answers to queries likely to arise in relation to the Central Bank Investment Firms Regulations, MiFID II and MiFIR. It is published in order to assist in limiting uncertainty.  It is not relevant to assessing compliance with regulatory requirements.  You should check the website from time to time in relation to any matter of importance to you to see if the position has altered.

On the 6 October 2017, the Central Bank published the third edition of the Central Bank Investment Firms Q&A. This incorporates new questions ID 1026 - ID 1031.

All previous versions of the Q&A are available here.

Capital Requirements Directive

MiFID Investment Firms are required to calculate their capital requirements in accordance with the criteria outlined in the Capital Requirements Regulation and Capital Requirements Directive IV. In this regard firms should review Chapter 11 of the Central Bank’s Implementation Notice on Competent Authority Discretions and Options in CRD IV and CRR. Firms are required to hold the minimum level of capital as set out in legislation 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 and hold 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.

Implementation of Competent Authority Discretions and Options in CRD IV and CRR | pdf 1324 KB The Central Bank’s Regulatory Document- Implementation of the CRD | pdf 839 KB Impending changes to the Capital Requirements Directive affecting (MiFID) investment firms | pdf 623 KB CEBS Paper on the Internal Capital Adequacy Assessment Process for Smaller Institutions | pdf 249 KB

European Commission and European Supervisory Authorities

Firms are advised to consult the European Commission, ESMA and EBA websites for details of Level 2 measures/technical standards and Level 3 guidance.

Themed Inspections

The following are letters issued by the Central Bank in relation to themed inspections conducted by the Central Bank on MiFID Investment Firms.

Thematic Review of Suitability 29 August 2017 | pdf 624 KB Thematic Review Client Reporting 7 July 2016 | pdf 325 KB Thematic Review of Conflicts of Interest 25 February 2016 | pdf 183 KB Thematic Review of Cyber Security and Operational Risk 22 September 2015 | pdf 1613 KB Thematic Review on Client Categorisation under MiFID 19 June 2015 | pdf 154 KB Thematic Review of Data Integrity of Regulatory Returns 12 September 2014 | pdf 984 KB Best Execution under MiFID - Themed Inspection of Investment and Stockbroking Firms 2012 | pdf 71 KB Corporate Governance Standards - Themed Inspection of Investment Firms 2012 | pdf 292 KB

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 2007 in question and answer format, as a guide to the provisions of the MiFID regulations.

Consumer Protection

Other regulatory requirements which investment intermediaries must comply with in the area of consumer protection are set out below: 

Consumer Protection Code 2012 | pdf 1789 KB Consumer Protection Code 2012 Guidance | pdf 926 KB Minimum Competency Code 2011 | pdf 1200 KB