What changed, Commission Delegated Regulation (EU) 2017/1018 of 29 June 2016 supplementing Directive 2014/65/EU

+ ### Article 1 — Scope
− ### art_1
− 
− Article 1
+ 2. This Regulation shall also apply to credit institutions, authorised under Directive 2013/36/EU of the European Parliament and of the Council (1), which provide one or more investment services or perform investment activities, and wish to use tied agents under the following rights:
− 2. This Regulation shall also apply to credit institutions, authorised under Directive 2013/36/EU of the European Parliament and of the Council (3), which provide one or more investment services or perform investment activities, and wish to use tied agents under the following rights:
+ (a) the right of freedom to provide investment services and activities in accordance with Article 34(5) of Directive 2014/65/EU;
− | (a) | the right of freedom to provide investment services and activities in accordance with Article 34(5) of Directive 2014/65/EU; |
− | --- | --- |
+ (b) the right of establishment in accordance with Article 35(7) of Directive 2014/65/EU.
− | (b) | the right of establishment in accordance with Article 35(7) of Directive 2014/65/EU. |
− | --- | --- |
+ ### Article 2 — Definitions
− ### art_2
− Article 2
− 
+ (a) ‘investment services and activities passport notification’ means a notification made in accordance with Article 34(2) of Directive 2014/65/EU, or in accordance with Article 34(5) of Directive 2014/65/EU;
− | (a) | ‘investment services and activities passport notification’ means a notification made in accordance with Article 34(2) of Directive 2014/65/EU, or in accordance with Article 34(5) of Directive 2014/65/EU; |
− | --- | --- |
− 
− | (b) | ‘branch passport notification’ or ‘tied agent passport notification’ means a notification made in accordance with Article 35(2) of Directive 2014/65/EU, or in accordance with Article 35(7) of Directive 2014/65/EU; |
− | --- | --- |
+ (b) ‘branch passport notification’ or ‘tied agent passport notification’ means a notification made in accordance with Article 35(2) of Directive 2014/65/EU, or in accordance with Article 35(7) of Directive 2014/65/EU;
− | (c) | ‘notification for the provision of arrangements to facilitate access to an MTF or an OTF’ means a notification made in accordance with Article 34(7) of Directive 2014/65/EU. |
− | --- | --- |
+ (c) ‘notification for the provision of arrangements to facilitate access to an MTF or an OTF’ means a notification made in accordance with Article 34(7) of Directive 2014/65/EU.
− | (d) | ‘passport notification’ means an investment services and activities passport notification, a branch passport notification, tied agent passport notification, or a notification for the provision of arrangements to facilitate access to an MTF or an OTF. |
− | --- | --- |
+ (d) ‘passport notification’ means an investment services and activities passport notification, a branch passport notification, tied agent passport notification, or a notification for the provision of arrangements to facilitate access to an MTF or an OTF.
− ### art_3
+ ### Article 3 — Information to be notified for the purposes of the investment services and activities passport notification
− Article 3
+ 
+ (a) the name, address and contact details of the investment firm along with the name of a specified contact person at the investment firm;
+ (b) a programme of operations which includes the following items:
− | (a) | the name, address and contact details of the investment firm along with the name of a specified contact person at the investment firm; |
− | --- | --- |
+ (i) details of the particular investment services, activities and ancillary services to be provided in the host Member State and the financial instruments to be used; and
+ 
+ (ii) confirmation as to whether the investment firm wishes to use tied agents, established in its home Member State, to provide services in the host Member State and, if so the name, address, contact details of such tied agents and the investment services or activities, ancillary services and financ…
− | (b) | a programme of operations which includes the following items:(i)details of the particular investment services, activities and ancillary services to be provided in the host Member State and the financial instruments to be used; and(ii)confirmation as to whether the investment firm wishes to u…
− | --- | --- |
− | (i) | details of the particular investment services, activities and ancillary services to be provided in the host Member State and the financial instruments to be used; and |
− | (ii) | confirmation as to whether the investment firm wishes to use tied agents, established in its home Member State, to provide services in the host Member State and, if so the name, address, contact details of such tied agents and the investment services or activities, ancillary services and fi…
+ ### Article 4 — Information to be notified concerning the change of investment services and activities particulars
− ### art_4
− 
− Article 4
+ ### Article 5 — Information to be notified concerning arrangements to facilitate access to an MTF or OTF
− ### art_5
− 
− Article 5
+ (a) the name, address and contact details of the investment firm or the market operator, along with the name of a specified contact person at the investment firm or the market operator;
− | (a) | the name, address and contact details of the investment firm or the market operator, along with the name of a specified contact person at the investment firm or the market operator; |
− | --- | --- |
+ (b) a short description of the arrangements and the date from which those arrangements will be provided in the host Member State;
− | (b) | a short description of the appropriate arrangements to be in place and the date from which these arrangements will be provided in the host Member State; |
− | --- | --- |
− 
− | (c) | a short description of the business model of the MTF or the OTF, including the type of the financial instruments traded, the type of participants, and the marketing approach of the MTF or OTF to target remote users, members or participants. |
− | --- | --- |
+ (c) a short description of the business model of the MTF or the OTF, including the type of the financial instruments traded, the type of participants, and the marketing approach of the MTF or OTF to target remote users, members or participants.
− ### art_6
+ ### Article 6 — Information to be notified in a branch passport notification or a tied agent passport notification
− Article 6
+ (a) the name, address and contact details of the investment firm or credit institution in the home Member State, and the name of a specified contact person at the investment firm or credit institution;
− | (a) | the name, address and contact details of the investment firm or credit institution in the home Member State, and the name of a specified contact person at the investment firm or credit institution; |
− | --- | --- |
+ (b) the name, address and contact details in the host Member State of the branch or of the tied agent from which documents may be obtained;
− | (b) | the name, address and contact details in the host Member State of the branch or of the tied agent from which documents may be obtained; |
− | --- | --- |
+ (c) the name of those persons responsible for the management of the branch or of the tied agent;
− | (c) | the name of those persons responsible for the management of the branch or of the tied agent; |
− | --- | --- |
+ (d) reference to the location, electronic or otherwise, of the public register where the tied agent is registered; and
− | (d) | reference to the location, electronic or otherwise, of the public register where the tied agent is registered; and |
− | --- | --- |
+ (e) a programme of operations.
− | (e) | a programme of operations. |
− | --- | --- |
+ 
+ (a) a list of investment services, activities, ancillary services and financial instruments to be provided;
+ 
+ (b) an overview explaining how the branch or the tied agent will contribute to the investment firm's, credit institution's or group's strategy, and setting out whether the investment firm is a member of a group, and what the main functions of the branch or tied agent will be;
+ 
+ (c) a description of the type of client or counterparty with which the branch or tied agent will be dealing and of how the investment firm or credit institution will obtain and deal with those clients and counterparties;
+ 
+ (d) the following information on the organisational structure of the branch or tied agent:
+ 
+ (i) functional, geographical and legal reporting lines if a matrix management structure is in operation;
+ 
+ (ii) description of the manner in which the branch or the tied agent fits into the corporate structure of the investment firm or credit institution, or of the group if the investment firm or credit institution is a member of a group;
+ 
+ (iii) the rules for reporting by the branch or the tied agent to the head office;
+ 
+ (e) details of individuals performing key functions with the branch or the tied agent, including the individuals responsible for day-to-day branch or tied agent operations, compliance and dealing with complaints;
+ 
+ (f) details of any outsourcing arrangements critical to the operations of the branch or the tied agent;
+ (g) summary details of the systems and controls that will be put in place, including:
− | (a) | a list of investment services, activities, ancillary services and financial instruments to be provided; |
− | --- | --- |
+ (i) arrangements that will be put in place to safeguard client money and customer assets;
− | (b) | an overview explaining how the branch or the tied agent will contribute to the investment firm's, credit institution's or group's strategy, and setting out whether the investment firm is a member of a group, and what the main functions of the branch or tied agent will be; |
− | --- | --- |
+ (ii) arrangements for the compliance with the rules of conduct of business and other obligations that fall under the responsibility of the competent authority of the host Member State according to Article 35(8) of Directive 2014/65/EU and record keeping under Article 16(6) of that Directive;
− | (c) | a description of the type of client or counterparty with which the branch or tied agent will be dealing and of how the investment firm or credit institution will obtain and deal with those clients and counterparties; |
− | --- | --- |
+ (iii) internal arrangements for controls on staff, which shall include controls over personal account dealing;
− | (d) | the following information on the organisational structure of the branch or tied agent:(i)functional, geographical and legal reporting lines if a matrix management structure is in operation;(ii)description of the manner in which the branch or the tied agent fits into the corporate structure o…
− | --- | --- |
− | (i) | functional, geographical and legal reporting lines if a matrix management structure is in operation; |
− | (ii) | description of the manner in which the branch or the tied agent fits into the corporate structure of the investment firm or credit institution, or of the group if the investment firm or credit institution is a member of a group; |
− | (iii) | the rules for reporting by the branch or the tied agent to the head office; |
+ (iv) arrangements to comply with anti-money-laundering obligations;
− | (e) | details of individuals performing key functions with the branch or the tied agent, including the individuals responsible for day-to-day branch or tied agent operations, compliance and dealing with complaints; |
− | --- | --- |
+ (v) details of controls over outsourcing and other arrangements with third parties in connection with the investment services or activities carried on by the branch or the tied agent;
− | (f) | details of any outsourcing arrangements critical to the operations of the branch or the tied agent; |
− | --- | --- |
+ (vi) the name, address and contact details of the accredited compensation scheme of which the investment firm or credit institution is a member;
− | (g) | summary details of the systems and controls that will be put in place, including:(i)arrangements that will be put in place to safeguard client money and customer assets;(ii)arrangements for the compliance with the rules of conduct of business and other obligations that fall under the respons…
− | --- | --- |
− | (i) | arrangements that will be put in place to safeguard client money and customer assets; |
− | (ii) | arrangements for the compliance with the rules of conduct of business and other obligations that fall under the responsibility of the competent authority of the host Member State according to Article 35(8) of Directive 2014/65/EU and record keeping under Article 16(6) of that Directive; |
− | (iii) | internal arrangements for controls on staff, which shall include controls over personal account dealing; |
− | (iv) | arrangements to comply with anti-money-laundering obligations; |
− | (v) | details of controls over outsourcing and other arrangements with third parties in connection with the investment services or activities carried on by the branch or the tied agent; |
− | (vi) | the name, address and contact details of the accredited compensation scheme of which the investment firm or credit institution is a member; |
+ (h) forecast statements for both profit and loss and cash flow, over an initial 36-month period.
− | (h) | forecast statements for both profit and loss and cash flow, over an initial 36-month period. |
− | --- | --- |
− 
− ### art_7
+ ### Article 7 — Information to be notified concerning the change of branch or tied agent particulars
− Article 7
+ (a) the name of the person or persons who will be responsible for the process of terminating the operation of the branch or the tied agent;
+ 
+ (b) the schedule of the planned termination;
− | (a) | the name of the person or persons who will be responsible for the process of terminating the operation of the branch or the tied agent; |
− | --- | --- |
+ (c) the details and processes proposed to wind down the business operations, including details of how client interests are to be protected, complaints resolved and any outstanding liabilities discharged.
− | (b) | the schedule of the planned termination; |
− | --- | --- |
+ ### Article 8 — Entry into force and application
− | (c) | the details and processes proposed to wind down the business operations, including details of how client interests are to be protected, complaints resolved and any outstanding liabilities discharged. |
− | --- | --- |
+ This Regulation shall enter into force on the twentieth day following that of its publication in the *Official Journal of the European Union*.
− ### art_8
+ It shall apply from the date that appears first in the second subparagraph of Article 93(1) of Directive 2014/65/EU.
− Article 8
+ This Regulation shall be binding in its entirety and directly applicable in all Member States
− This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
+ (1) Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 1…
− It shall apply from the date that appears first in the second subparagraph of Article 93(1) of Directive 2014/65/EU.