Legal Updates

The European Union (Investment Firms) Regulations 2021 [S.I. No. 355/2021] and the European Union (Investment Firms) (No. 2) Regulations 2021 [S.I. No. 356/2021] entered into force on 21 September 2021 (the Regulations).

The Regulations:

• give partial effect to Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019 on the prudential supervision of investment firms (the IFD); and
• give full effect to Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019 on the prudential supervision of investment firms (the IFR), respectively.

The IFD and IFR put in place a new prudential framework for investment firms authorised under the Markets in Financial Instruments Directive (Directive 2014/65/ EU) (MiFID II).

Our briefing paper on the national discretions relating to variable remuneration which have been exercised by Ireland in its transposition of the IFD can be accessed here.

IFD and IFR separately provide for a number of other discretions to be exercised by national competent authorities (NCAs) of Member States. On 14 January 2021, the Central Bank of Ireland (Central Bank) published the paper ‘Consultation on Competent Authority Discretions in the IFD and the IFR’ (CP135) whereby it consulted on the various discretions afforded to the Central Bank under the IFD and the IFR. A Dillon Eustace briefing paper on this topic can be accessed here.

The Central Bank published its feedback statement on CP135 on 24 June 2021, which can be accessed here. In its feedback statement, the Central Bank stated its intention to publish an ‘Implementation of NCA Discretions in IFD/IFR Regulatory Notice’. The Central Bank’s approach towards the exercise of the discretions will be confirmed in this notice.

If you have any queries about the information contained in this article, please contact Keith Waine or your usual Dillon Eustace contact.