Certain investment firms now required to re-authorise as credit institutions
Reading time: 1 minute
Paschal Donohoe
Certain large systemic investment firms will be required to re-authorise as credit institutions following the transposition of the Investment Firms Directive (IFD) into Irish law.
Three statutory instruments have been signed by finance minister Paschal Donohoe to complete the transposition of the IFD and finalise the implementation of the Investment Firms Regulation (IFR).
Together, IFD and IFR put in place a new prudential framework for investment firms authorised under the Markets in Financial Instruments Directive (MiFID II).
Large investment firms will remain subject to the prudential requirements of the Capital Requirements Directive and Regulation (CRD/CRR).
However, Article 62(6) of IFD requires member states to impose an obligation on large systemic investment firms (Class 1 firms) to apply for re-authorisation as credit institutions.
Article 62(6) has now been transposed into Irish law by secondary legislation inserting a new authorisation process (Part IIA) into the Central Bank Act 1971 enabling Class 1 firms to apply for re-authorisation as credit institutions.
Share this article:
Subscribe to our newsletter to not miss articles like this one:
SUBSCRIBE
