Ireland: Investment Firms Quarterly Legal And Regulatory Update: 1 January 2016 - 31 March 2016

Last Updated: 15 April 2016
Article by Breeda Cunningham, Valerie Bowens and Michele Barker

Most Read Contributor in Ireland, July 2017


Markets in Financial Instruments Directive ("MiFID")

(i) Thematic Review: Conflicts of Interest

The Central Bank of Ireland (the "Central Bank") recently conducted a themed inspection (the "Themed Inspection") to examine the processes for the identification and management of conflicts of interest ("COI") in investment firms and on 25 February 2016 the Central Bank issued its findings from the Themed Inspection (the "Feedback Statement") with respect to COI.

By way of background, firms are obliged to establish and maintain an effective organisational model that actively monitors COI on a day-to-day basis so as to ensure that the best interests of clients are not negatively impacted. The Feedback Statement details the Central Bank's findings and highlights a number of trends that it has identified with respect to COI. While the Feedback Statement is given in the context of investment firms, it is also relevant to AIFMs and UCITS management companies of all types.

There are a number of key areas where the Central Bank identified failings around management of COI. These are, as follows:

General trends

  • Lack of board ownership in relation to identification and management of COI;
  • Policies and procedures not being sufficient to address COI requirements;
  • Failure to implement policies and procedures in line with requirements;
  • COI logs not live documents and some COI logs being blank;
  • Failure on behalf of firms to demonstrate that they had considered, at a minimum, all of the different COI scenarios listed in applicable regulations; and
  • Failure to communicate with and train employees on their obligations around COI, in order to identify COI from the ground up.

Personal Account Dealing

  • Failure to perform post-trade analysis on personal account dealing.

Gifts and Entertainment

  • Firms not considering that accepting gifts and entertainment could compromise their duty to act in clients' best interest; and
  • Firms having no control processes in place around incoming or outgoing gifts, nonmonetary benefits and entertainment.

Intragroup Relations

  • Improvement of the management of COI that arise where part of group entities; and
  • Improvement of the management of COI that arise where management or a director propose to take on a role in other group entities.

The Feedback Statement also sets out a schedule of good and poor practices which it observed during its Themed Inspection and has indicated that the following actions are required with respect to the findings. These action points are stated as follows:

  • Review of all COI policies and procedures to ensure they meet relevant regulatory requirements;
  • Consider all good and poor practices listed in Appendix 2 of the Feedback Statement against the firm's own procedures; and
  • Review the current list of identified COI to ensure that it remains up to date and relevant.

The Central Bank expects the content of the Feedback Statement to be discussed, considered and minuted by the board of directors of firms before 30 June 2016 and that where there is non-compliance with regulatory requirements, it will have regard to consideration given by any firm to the Feedback Statement when exercising its regulatory and enforcement powers.

A copy of the full Feedback Statement is available at the following link: Review of Conflicts of Interest 25 February 2016.pdf

(ii) Central Bank of Ireland – MiFID Application Form

The Central Bank is the competent authority in Ireland for the authorisation of investment firms. In order for an investment firm to establish a business in Ireland it must apply to the Central Bank for authorisation under Regulation 11 of the European Communities (Markets in Financial Instruments) Regulations 2007 (as amended), (the "MiFID Regulations").

On 9 March 2016 the Central Bank published an updated MiFID application form which contains updated references to the European Union (Capital Requirements) Regulations 2014 (S.I. no. 158 of 2014) which came into effect on 1 January 2014. The updated application form along with the other MiFID forms, can be found at the following link:

To view the full article please click here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.