European Market Infrastructure Regulation ("EMIR")
(i) Central Bank appointed National Competent Authority
On 8 October 2014, the Central Bank was appointed the sole National Competent Authority ("NCA") for the purposes of the European Market Infrastructure Regulation ("EMIR"), by the Minister for Finance in Statutory Instrument S.I. 443 of 2014 (the "EMIR Regulation").
In addition, the EMIR Regulation gives certain powers to the Central Bank such as supervisory and investigatory powers considered by the Minister for Finance as necessary to ensure that the Central Bank can properly fulfill its role as the NCA. The powers which have been given to the Central Bank can be summarised as follows:
Require a counterparty to a derivative contract to submit an EMIR Regulatory Return ("ERR");
Approve a "third party assessor" whose role will be to objectively assess whether the ERR has been prepared and completed in accordance with the EMIR Regulation;
Require the taking or refraining from taking by counterparties of certain actions or to prohibit certain actions by counterparties by issuing a direction to a Financial Counterparty (or to a Non-Financial Counterparty ("NFC") in certain circumstances);
Issue a contravention notice detailing the date by which the contravention may be remedied; and
Appoint authorised officers with powers of entry, search, inspection and other related powers to monitor compliance with the EMIR Regulation.
Lastly, the EMIR Regulation establishes Ireland's sanctions regime for infringements of obligations imposed by EMIR under the EMIR Regulation.
(ii) Consultation on the Supervision of Non-Financial Counterparties under EMIR
EMIR affects all entities "established" in the European Union that enter into derivatives.
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