Requirements and Guidance for Regulated Markets 

The Central Bank of Ireland has the power to impose conditions or requirements on the Market Operator of a Regulated Market in addition to those set out in the relevant legislation.  Examples of conditions or requirements that could be imposed are set out below:

  • Requirement to make information returns on the operations of the Market Operator to the Central Bank of Ireland as it may deem necessary from time to time;
  • Requirement for senior management to be available on request to meet the Central Bank of Ireland to deal with regulatory issues;
  • Requirement to inform the Central Bank of Ireland immediately where a situation has arisen or is likely to arise in relation to the operation of the Market Operator or its Regulated Market;
  • Requirement to submit monthly financial statements for the Market Operator to the Central Bank of Ireland;
  • Requirement to submit annual audited financial statements of the Market Operator to the Central Bank of Ireland;
  • Requirement to seek the prior approval of the Central Bank of Ireland in respect of proposed appointments as a director, chief executive, manager or as the holder of an equivalent position;
  • Requirement to notify the Central Bank of Ireland immediately of any departures from the Board of the Market Operator or of the departures of any senior management;
  • Requirement to provide the Central Bank of Ireland with copies of any complaints the Market Operator receives that its rules are not transparent or non-discretionary.

This list is not exhaustive and the Central Bank of Ireland has the power to add, amend or revoke any conditions or requirements imposed on the Market Operator of a Regulated Market.

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

Corporate Governance Requirements

The Central Bank of Ireland is committed to strengthening corporate governance standards and practices across the financial services industry. The Corporate Governance Requirements for Investment Firms and Market Operators 2018 (the Requirements) provide clarity to industry and promote high standards of corporate governance within firms. They supplement and support the MiFID regime. The Requirements are intended to apply to firms authorised by the Central Bank that are designated as High, Medium High or Medium Low Impact under the Central Bank’s Probability Risk Impact System (PRISM). The Requirements will be conditions to which relevant firms are subject pursuant to Regulation 8 of the MiFID II Regulations or section 10(13) of the Investment Intermediaries Act 1995 as applicable. On that basis, the Requirements will be issued to all relevant firms so as to give such firms an opportunity to provide any submissions relevant to their individual firm prior to the Requirements taking effect with any relevant amendments from 1 July 2019. Low Impact firms are encouraged to adopt the Requirements as best practice.

Corporate Governance Requirements for Investment Firms and Market Operators 2018 | pdf 400 KB

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 

Capital Requirements

Market Operators of Regulated Markets are required to hold a minimum amount of capital as specified by the Central Bank.

In this regard please refer to the Central Bank’s recent Consultation on a Capital Requirement Framework for Market Operators (CP101) and related Feedback Statement.

European Supervisory Authorities

Firms are advised to consult the ESMA and EBA websites for details of Level 2 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 Client Reporting 7 July 2016 | pdf 318 KB Thematic Review of Conflicts of Interest 25 February 2016 | pdf 179 KB Thematic Review of Cyber-Security and Operational Risk 22 September 2015 | pdf 1576 KB Thematic Review of Client Categorisation under MiFID 19 June 2015 | pdf 151 KB Thematic Review of Data Integrity of Regulatory Returns 12 September 2014 | pdf 962 KB Best Execution under MiFID - Themed Inspection of Investment and Stockbroking Firms 2012 | pdf 70 KB Corporate Governance Standards - Themed Inspection of Investment Firms 2012 | pdf 287 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 1748 KB Consumer Protection Code 2012 Guidance | pdf 906 KB Minimum Competency Code 2011 | pdf 1173 KB