Financial Services Regulation and Compliance - Investment Firms Sept 2019

DOMESTIC

CBI updates its Consumer Protection Code in relation to intermediary inducements

Following a period of public consultation, the Central Bank of Ireland has published an addendum to its Consumer Protection Code 2012 on the payment of commission to financial intermediaries. It introduces new transparency requirements for the benefit of consumers and prohibits certain types of commission arrangements. Under the new rules, the Central Bank will require intermediaries to publish details of the commissions they receive from product producers (such as credit institutions and investment firms) on their website. In addition, the Central Bank will no longer permit intermediaries to describe themselves and their regulated activities as ‘independent’ where they accept and retain commission in circumstances where advice is provided and the conflict of interest provisions have been similarly updated.

EUROPEAN

EBA adds the Securitisation Regulation to its online Interactive Single Rulebook and Q&A tools

The European Banking Authority (EBA) has updated its online Interactive Single Rulebook and Q&A tool with the inclusion of the "simple, transparent and standardised" (STS) Securitisation Regulation, (EU) 2017/2402. The inclusion of the Securitisation Regulation into the Q&A tool will also allow users to submit any questions they may have on the application of this Regulation and the EBA's work related to it.

MIFID II: ESMA issues latest double volume cap data

The European Securities and Markets Authority (ESMA) has updated its public register with the latest set of double volume cap (DVC) data under the Markets in Financial Instruments Directive (MiFID II). The updates include DVC data and calculations for the period 1 August 2018 to 31 July 2019 as well as updates to already published DVC periods. MiFID II introduced the DVC to limit the amount of dark trading in equities allowed under the reference price waiver and the negotiated transaction waiver. The DVC is calculated per instrument based on the rolling average of trading in that instrument over the last 12 months.

The number of new breaches is 80. 59 equities for the 8% cap, applicable to all trading venues, and 21 equities for the 4% cap, that applies to individual trading venues. Trading under the waivers for all new instruments in breach of the DVC thresholds should be suspended from 11 September 2019 to 10 March 2020.

For more information on this topic please contact any member of A&L Goodbody's Financial Regulation team.

Date published: 10 October 2019