MiFID Authorisation and Post-Authorisation Changes
This section contains information regarding application for, changing and withdrawing authorisation for Markets in Financial Instruments Directive (MiFID) investment firms.
Central Bank of Ireland is the competent authority in Ireland for the authorisation of investment firms, Market operators and Data Reporting Services Providers.
Stages of the Authorisation Process
Each potential applicant for authorisation must consider whether its proposed business model:
- Requires authorisation pursuant to the MiFID Regulations
- Can comply with the MiFID Regulations
- Can comply with the Central Bank’s requirements and any other financial services law
- Is capable of complying with, and adhering to, the requirements that must be satisfied on an ongoing basis.
Having satisfactorily completed this consideration, the potential applicant must review the Central Bank’s Authorisation Guidance Note on Completing an Application Form for Authorisation as a MiFID Investment Firm (PDF 861.91KB) to familiarise themselves with the authorisation process before contacting Investmentfirmauthorisation@centralbank.ie with the requisite information.
Coming Soon: Applicant Firms seeking an authorisation and all other post-authorisations under the Markets in Financial Instruments Directive (MiFID) will be required to submit application related documentation through the Central Bank Portal. See MiFID Communications page for updates.
Please send any queries by e-mail to the Central Bank at Investmentfirmauthorisations@centralbank.ie
Pre-Application Stage
As a first step in the process, (the pre-application stage), the Central Bank will hold a Preliminary Meeting with the applicant. The Preliminary Meeting is an opportunity for the applicant firm to have early engagement with the Central Bank in advance of commencing the application process.
At the Preliminary Meeting the Central Bank will outline the process for applying for an authorisation as an investment firm and our key authorisation expectations. The applicant will provide the Central Bank with a high-level overview of its proposals.
Applicants should refer to the Authorisation Guidance Note for MiFID Investment Firm - Preliminary Meeting Pre-Application Presentation (PDF 823.46KB) in preparing for the meeting. This Guidance Note outlines the information that we require applicants to cover in their pre-application presentation.
Key Facts Document Stage
The next step in the process is the submission by the applicant of a Key Facts Document (KFD).
The KFD provides the Central Bank with high-level information in respect of the applicant MiFID investment firm’s proposed business, operational model and associated risks. It includes details in respect of the applicant firms background, ownership, number and type of clients, capital projections, governance and staff resourcing arrangements and outsourcing arrangements.
The purpose of the KFD is two-fold:
- To facilitate the Central Bank in obtaining a clear, high-level understanding of the applicant’s proposed business model, risks and governance arrangements
- To enable the Central Bank to identify, where possible, potentially material issues in respect of the applicant firms’ proposal at an early juncture so that timely feedback may be given to the applicant firm.
Please note that while the KFD stage does not constitute the formal assessment (which commences once a Formal Application is submitted), we expect that the applicant firm takes under consideration all items discussed and feedback provided during the Preliminary Meeting with the Central Bank. Firms should make any changes necessary to meet the Central Bank’s expectations prior to submitting the KFD.
Applicants should refer to the Authorisation Guidance Note for MiFID Investment Firms - Key Facts Document (PDF 1.3MB) when preparing the KFD submission.
At the conclusion of the KFD stage the Central Bank may either:
- Invite the applicant firm to submit a Formal Application, including feedback on further elements of the proposal that the Central Bank will require the firm to consider and reflect in the Formal Application or
- Provide the applicant firm with feedback on material item(s) which it deems necessary for the firm to consider and address before the Central Bank could be in a position to invite the firm to submit a Formal Application.
Formal Application Stage
The applicant submits a Formal Application for authorisation.
The Central Bank welcomes applications where the proposed firm (applicant) can meet:
Applicant Firms are advised to seek legal advice if in any doubt about their scope or application.
All applicants seeking authorisation as a MiFID Investment Firm or amendments to their authorisation should use the form MiFID Investment Firm Authorisation Application Form (DOCX 460.37KB).
Other Authorisation Applications
MTF and DLT
MiFID investment firms that are currently authorised by the Central Bank under the MiFID Regulations to operate a Multilateral Trading System (MTF), or that propose to make an application, to operate a MTF (whether it be as a new MiFID Investment Firm or as an extension to an existing MiFID authorisation) may make an application to the Central Bank for permission to operate a Distributed Ledger Technology (DLT) Market Infrastructure
Applicants seeking both a MiFID authorisation to operate a MTF and permission to operate a DLT Market Infrastructure should engage with the Central Bank in advance of submitting an application (note that an application for both aspects run concurrently). Applicants should have regard to the below-linked Application Form. Enquiries in this regard should be submitted to MancoFSPauthorisations@centralbank.ie
Application Form - DLT Pilot Regime for Market Infrastructures 2023 (DOCX 256.83KB)
MiFID Data Reporting Services Provider
All applicants seeking authorisation as a MiFID Data Reporting Services Provider should use the form MiFID II Application Form Data Reporting Services Providers (DRSP) (DOCX 303.43KB).
Ancillary Activity Exemption
From 28 February 2022 entities are no longer required to inform the Central Bank when they are using the ancillary activity exemption under Regulation 4(1)(k) of the MiFID Regulations. However, it is important to note that the Central Bank can request such entities to demonstrate how this activity is ancillary to their main business.
Transparency Arrangements for MiFID Investment Firms
Waivers from Pre-Trade Transparency
A market operator or investment firm operating a trading venue may apply for the use of a waiver from pre-trade transparency requirements in accordance with Articles 4 and 9 of Regulation (EU) No 600/2014 of the European Parliament and of the council (MiFIR).
An investment firm acting as a systematic internaliser may apply for the use of a waiver from pre-trade transparency requirements in accordance with Article 18(2) of MiFIR.
Firms should contact their supervisor to obtain a copy of relevant application form.
Deferred Publication of Post-Trade Transparency
A market operator or investment firm operating a trading venue may apply for the use of a deferral for the publication of post-trade transparency information in accordance with Articles 7 and 11 of MiFIR.
An investment firm which either on its own account or on behalf of clients, concludes transactions in financial instruments may apply for the use of a deferral for the publication of post-trade transparency information in accordance with Articles 20 and 21 of MiFIR.
Firms should contact their supervisor to obtain a copy of relevant application form.
Application for Extension of Authorisation
An application by a firm to extend its MiFID authorisation requires the prior approval of the Central Bank. Firms must submit an application for an extension to authorisation per the process explained above.
Amendment Processing
There are additional ongoing requirements in relation to MiFID investment firms once they are authorised. The following list is not exhaustive and is intended to serve as a guide only.
Change in Qualifying Holding
Changes to qualifying holdings in MiFID investment firms are subject to the approval of the Central Bank; details of the exact requirements are set out in the MiFID Regulations. Firms are obliged to advise the Central Bank on an annual basis of their ownership structure via the Annual Ownership Confirmation Upload and Annual Ownership Confirmation Return on the Central Bank Portal
The is to be used to provide prior notification to the Central Bank of proposed changes to qualifying holdings.
The Central Bank would appreciate one week advance notice of the submission of the Acquiring Transaction Notification Form (ATNF) by contacting the Authorisation team at investmentfirmauthorisations@centralbank.ie .
Change in PCF Role
The Central Bank of Ireland's Fitness and Probity regime, requires completed Individual Questionnaires (IQs) to be submitted in respect of each proposed PCF appointment. View further information on this process.
Capital Contributions and Subordinated Loans
Capital contributions and subordinated loans are an acceptable form of capital for the purposes of meeting the Own Funds Requirements under Investment Firms Regulation (IFR) and Capital Requirements Regulation (CRR). Such forms of capital are however subject to the applicable conditions set out Part Two of the CRR. All such capital transactions are subject to approval by the Central Bank before they can be counted against a firms Own Funds Requirements under the IFR and CRR.
Please also refer to the Implementation Notice for Competent Authority discretions in the Capital Requirements Regulation and Capital Requirements Directive (PDF 1.47MB) and Implementation of Competent Authority Discretions in the European Union (Investment Firms) Regulations 2021 and Regulation (EU) No 2019/2033 (PDF 783.3KB).
Change in Company Name and Other Changes
The Central Bank must first approve any change in company name before it is submitted to the Companies Registration Office. Firms should contact their Supervisor to seek approval.
Other changes such as change of address by a company must be notified in advance to the Central Bank. If there is uncertainty regarding whether a change within a firm constitutes a material change for supervisory purposes, you should contact the Central Bank.
Incomplete applications will not be processed and may be returned thereby potentially exposing your firm to increased regulatory levies and/or other levies. The authorisation/registration held by your firm can be checked on the Central Bank’s registers.
Revocations Process
Guidance Note on application for Withdrawal (Voluntary Revocation) of Authorisation of a MiFID Investment Firm (PDF 555.18KB) sets out the requirements of the Central Bank where a MiFID Investment Firm proposes to seek voluntary revocation of their authorisation.
This process also covers those instances where an investment firm is seeking to revoke any authorised Investment Business Services and/or Investment Instruments under the Investment Intermediaries Act 1995.
Such applications should be submitted to the Central Bank by completing the Application Form for Withdrawal (Voluntary Revocation) of Authorisation of a MiFID Investment Firm (PDF 448.93KB) and submitting it together with all of the required supporting documentation to the Central Bank at the address provided on the Application Form.