Certain investment firms to be required to re-authorise as credit institutions
Legislation requiring certain large systemic investment firms to re-authorise as credit institutions will be introduced “as soon as possible”, the Department of Finance has said.
Statutory instruments signed by finance minister Paschal Donohoe this week have partly transposed the Investment Firms Directive (IFD) and fully transposed the Investment Firms Regulation (IFR) into Irish law.
IFD and IFR together put in place a new prudential framework for investment firms authorised under the Markets in Financial Instruments Directive (MiFID II).
However, systemic investment firms are unaffected and remain under the prudential requirements of the Capital Requirements Directive and Regulation (CRD/CRR).
The remaining provision of the IFD to be transposed into Irish law is Article 62(6), which inserts a new Article 8a into CRD and essentially required member states to impose an obligation on certain large systemic investment firms (Class 1 Firms) to re-authorised as credit institutions.
“The Department of Finance will conclude work, as soon as possible, to establish in legislation a re-authorisation process for those investment firms required to re-authorise as credit institutions,” the Department said in a statement yesterday.