European Communities (Markets in Financial Instruments) (Amendment) Regulations 2007
Statutory Instruments
Source: Statutory Instruments

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paragraphs: (1) These Regulations may be cited as the European Communities (Markets in Financial Instruments) (Amendment) Regulations 2007.
(2) These Regulations and the European Communities (Markets in Financial Instruments) Regulations may be cited together as the European Communities (Markets in Financial Instruments) Regulations 2007 (Nos. 1 and 2).
(3) These Regulations come into operation on 1 November 2007.
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paragraphs: Parts 11 to 17, respectively, of the European Communities (Markets in Financial Instruments) Regulations, S.I. No. 60 of 2007 are renumbered as Parts 10 to 16.
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paragraphs: Regulation 2 of S.I. No. 60 of 2007 is amended by substituting the following for paragraph (2):
“(2) The following provisions apply to credit institutions authorised under Directive 2006/48/EC, that provide one or more investment services under these Regulations:
(a) Regulations 3, 4, 5(1), 5(2), 31, and 33 to 41,
(b) Parts 7 and 8 except Regulation 109(9) of Part 7,
(c) Part 9 except Regulations 122, 123(2) to (6), 124(1) to (6), 125(2) to (5), 127(1) to (5), and 127(7) to (8); and
(d) Parts 10, 11 and 12.”
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paragraphs: Regulation 3 of S.I. No. 60 of 2007 is amended—
(a) by substituting the following for subparagraph (b) of the definition of “close link”:
“(b) control, being the relationship between a parent undertaking and a subsidiary, in all the cases referred to in Regulation 4 of the European Communities (Companies: Group Accounts) Regulations, 1992 ( S.I. No. 201 of 1992 ), or”,
(b) by adding the following definition:
“ ‘eligible counterparties’ means—
(a) investment firms,
(b) credit institutions,
(c) insurance companies,
(d) undertakings for the collective investment in transferable securities authorised pursuant to EU Council Directive 85/611/EEC of 20 December 1985 and the management companies of the undertakings,
(e) pension funds and their management companies,
(f) undertakings exempted under Regulation 5(1)(j) and (k) from the application of these Regulations,
(g) national governments and their corresponding offices including public bodies that deal with public debt, central banks and supranational organisations,
(h) other financial institutions authorised or regulated under Community legislation or the national law of a Member State and
(i) third country entities equivalent to the categories of entities mentioned in sub-paragraphs (a) to (h);”
(c) by adding the following definition:
“ ‘investment research’ means research or other information recommending or suggesting an investment strategy, explicitly or implicitly, concerning one or several financial instruments or the issuers of financial instruments, including any opinion as to the present or future value or price of such instruments, intended for distribution channels or for the public, and in relation to which the following conditions are met:
(a) it is labelled or described as investment research or in similar terms, or is otherwise presented as an objective or independent explanation of the matters contained in the recommendation;
(b) if the recommendation in question were made by an investment firm to a client, it would not constitute the provision of investment advice for the purposes of Directive 2004/39/EC;”
(d) by substituting the following for the definition of “parent undertaking”
‘ “parent undertaking’ means an undertaking that has one or more subsidiary undertakings;”,
(e) by adding the following definition:
“ ‘personal transaction’ means a trade in a financial instrument effected by or on behalf of a relevant person, where—
(a) that relevant person is acting outside the scope of the activities the person carries out in that capacity, or
(b) the trade is carried out for the account of any of the following persons:
(i) the relevant person;
(ii) any person with whom the relevant person has a family relationship or has close links;
(iii) a person whose relationship with the relevant person is such that the relevant person has a direct or indirect material interest in the outcome of the trade, other than a fee or commission for the execution of the trade.”
(f) by adding the following definition:
“ ‘qualifying shareholder’ means a person who has or controls a qualifying holding;”,
(g) by substituting the following for the definition of “relevant person”:
“ ‘relevant person’, in relation to an investment firm or a credit institution, means any of the following:
(a) a director, partner or equivalent, manager or tied agent;
(b) a director, partner or equivalent, or manager of any tied agent;
(c) a person who is an employee or tied agent
(d) a person—
(i) whose services are placed at the disposal, and under the control, of
(I) the investment firm or its tied agent, or
(II) the credit institution, and
(ii) who is involved in the provision of investment services and activities;
(e) a natural person who, under an outsourcing arrangement, is directly involved in the provision of services to—
(i) the investment firm or its tied agent, or
(ii) the credit institution;” and
(h) by substituting the following for the definition of “subsidiary”:
“ ‘subsidiary’ means a subsidiary undertaking within the meaning of Regulation 4 of the European Communities (Companies: Group Accounts) Regulations, 1992 ( S.I. No. 201 of 1992 );”.
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paragraphs: Regulation 5 of S.I. No. 60 of 2007 is amended as follows:
(a) by substituting the following for subparagraph (g) and (h):
“(g) any of the following who acts on behalf of, the National Treasury Management Agency:
(i) An Post, including any postmaster acting on its behalf,
(ii) the Prize Bond Company Ltd. or any successor to the Prize Bond Company Ltd, as operator of the Prize Bond scheme,
(h) persons—
(i) dealing on own account in financial instruments, or