the European Union (Investment Firms) Regulations 2021 [S.I. No. 355/2021] and the European Union (Investment Firms) Regulation 2021 (No. 2) [S.I. No. 356/2021] entered into force on September 21, 2021 (the Regulations).
The rule :
- 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.
IFD and IFR have put in place a new prudential framework for investment firms authorized under the Markets in Financial Instruments Directive (Directive 2014/65/EU) (MiFID II).
Our information note on the national discretions relating to variable remuneration which have been exercised by Ireland in its transposition of the IFD is accessible here.
The IFD and the IFR separately provide for a number of other discretionary powers to be exercised by national competent authorities (CNA) of the Member States. On 14 January 2021, the Central Bank of Ireland (central bank) published the document “Consultation on Competent Authority Discretions in the IFD and the IFR” (CP135) whereby it consulted on the various discretionary powers granted to the Central Bank under the IFD and the IFR. An information document by Dillon Eustace on this subject is accessible here.
The Central Bank published its feedback notice on CP135 on June 24, 2021, accessible here. In its feedback statement, the Central Bank stated its intention to issue an “Implementation of NCA Discretionary Powers in IFD/IFR Regulatory Notice”. The Central Bank’s approach to the exercise of discretionary powers will be confirmed in this opinion.