Financial Services Regulation and Compliance - Investment Firms February 2023

Domestic

Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Investment Firms) Regulations 2023 (S.I. No. 10 of 2023)

On 23 January 2023, the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Investment Firms) Regulations 2023 (2023 Regulations) were published and will come into operation on 1 July 2023. They will revoke and replace the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1))(Investment Firms) Regulations 2017. The 2023 Regulations contain amendments to the existing client asset requirements, which are set out in Part 6.

The CBI expects both investment firms and credit institutions to have commenced preparations in accordance with the 2023 Regulations.

Part 6 of the 2023 Regulations will come into effect on 1 January 2024, to the extent that it applies to credit institutions.

Addendum to the guidance on the Central Bank Client Asset Requirements

On 3 February 2023, the CBI published an addendum to the guidance on the Central Bank Client Asset Requirements. The guidance was amended in relation to Part 6 of the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Investment Firms) Regulations 2023 (the CAR). The addendum clarifies what should be included in customer terms of business and also sets out guidance in relation to material transfers of client assets to or from another entity by an investment firm as part of a transfer of business.

The revised CAR will be applicable to credit institutions from 1 January 2024.

European

ESMA publishes final report on opinion on the trading venue perimeter

On 2 February 2023, The European Securities and Markets Authority (ESMA) published the final report on the opinion on the trading venue perimeter, providing guidance on when certain systems and facilities qualify as multilateral and therefore should seek authorisation as a trading venue. The final report seeks to harmonise interpretations on, amongst others, new technology providers and request for quote systems that may, in some instances, operate de facto a multilateral system without proper authorisation. ESMA expects NCAs to require firms to take appropriate action to swiftly apply for authorisation as a trading venue where necessary.

For more information on these topics please contact any member of A&L Goodbody's Asset Management & Investment Funds team.

Date published: 20 March 2023