Central Bank issues warning on MiFID II Unauthorised Businesses

The Markets in Financial Instruments Directive (MiFID II) (Directive 2014/65/EU), which enters into force on 3 January 2018, substantially extends the range of entities,  the financial instruments and activities which are caught within its scope  and which will require Central Bank authorisation. It also removes and narrows exemptions from authorisation available under the current regime.

Irish firms that currently do not need Central Bank authorisation in order to conduct business may require authorisation with the coming into force of MiFID II.  This is particularly the case for some proprietary traders and other businesses that deal in financial instruments on their own account in the course of an otherwise unregulated business model.

Firms who routinely engage in investment activity should review that activity in light of MiFID II.  It is the responsibility of firms and individuals to ensure they operate in compliance with the relevant legislation, where applicable. 

If you are unsure as to whether or not your firm’s activities fall within the scope of the relevant legislation, you should consult legal representatives who are familiar with the MiFID II regime.  The Central Bank expects firms who require authorisation from 3 January 2018 to apply in sufficient time so that such an application can be assessed and a determination made prior to 3 January 2018.

It is a criminal offence for an unauthorised firm or person to provide financial services in Ireland that require Central Bank authorisation.

28 June 2017

More information:

MiFID Firms