# L_2021277EN.01000601.xml

| 2.8.2021 | EN | Official Journal of the European Union | L 277/6 |
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2.8.2021

EN

Official Journal of the European Union

L 277/6

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COMMISSION DELEGATED REGULATION (EU) 2021/1254

of 21 April 2021

correcting Delegated Regulation (EU) 2017/565 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive

(Text with EEA relevance)

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (1), and in particular Article 16(12) and Article 27(9) thereof,

Whereas:

| (1) | Errors appeared in Article 1(1) of Commission Delegated Regulation (EU) 2017/565 (2) as it was requiring the application of Article 59(4), Article 60 and Chapter IV of that Regulation, instead of Article 64(4), Article 65 and Chapter VIII. |
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(1)

Errors appeared in Article 1(1) of Commission Delegated Regulation (EU) 2017/565 (2) as it was requiring the application of Article 59(4), Article 60 and Chapter IV of that Regulation, instead of Article 64(4), Article 65 and Chapter VIII.

| (2) | Errors appeared in several cross-references in Annex I to Delegated Regulation (EU) 2017/565, more precisely under ‘Client assessment’, ‘Order handling’, ‘Client order and transactions’, ‘Reporting to clients’, ‘Communication with clients’ and ‘Organisational requirements’. |
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(2)

Errors appeared in several cross-references in Annex I to Delegated Regulation (EU) 2017/565, more precisely under ‘Client assessment’, ‘Order handling’, ‘Client order and transactions’, ‘Reporting to clients’, ‘Communication with clients’ and ‘Organisational requirements’.

| (3) | Delegated Regulation (EU) 2017/565 should therefore be corrected accordingly, |
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(3)

Delegated Regulation (EU) 2017/565 should therefore be corrected accordingly,

HAS ADOPTED THIS REGULATION:

Article 1

Delegated Regulation (EU) 2017/565 is corrected as follows:

| (1) | in Article 1, paragraph 1 is replaced by the following:

  ‘1.   Chapter II, and Sections 1 to 4, Article 64(4), Article 65 and Sections 6 to 8 of Chapter III and, to the extent they relate to those provisions, Chapter I and Chapter VIII of this Regulation shall apply to management companies when providing services in accordance with Article 6(4) of Directive 2009/65/EC and Article 6(6) of Directive 2011/61/EU of the European Parliament and of the Council (*1).


  (*1)  Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 (OJ L 174, 1.7.2011, p. 1).’;" |
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(1)

in Article 1, paragraph 1 is replaced by the following:

‘1.   Chapter II, and Sections 1 to 4, Article 64(4), Article 65 and Sections 6 to 8 of Chapter III and, to the extent they relate to those provisions, Chapter I and Chapter VIII of this Regulation shall apply to management companies when providing services in accordance with Article 6(4) of Directive 2009/65/EC and Article 6(6) of Directive 2011/61/EU of the European Parliament and of the Council (*1).

(*1)  Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 (OJ L 174, 1.7.2011, p. 1).’;"

*1

| (2) | Annex I is replaced by the text in the Annex to this Regulation. |
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(2)

Annex I is replaced by the text in the Annex to this Regulation.

Article 2

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 21 April 2021.

For the Commission

The President

Ursula VON DER LEYEN

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(1)  
  OJ L 173, 12.6.2014, p. 349.

1

(2)  Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive (OJ L 87, 31.3.2017, p. 1).

2

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ANNEX

‘ANNEX I

Record-keeping

Minimum list of records to be kept by investment firms depending upon the nature of their

  activities

| Nature of obligation | Type of record | Summary of content | Legislative reference |
| --- | --- | --- | --- |
| Client assessment |
| | Information to clients | Content as provided for under Article 24(4) of Directive 2014/65/EU and Articles 44 to 51 of this Regulation | Article 24(4) of Directive 2014/65/EU
  Articles 44 to 51 of this Regulation |
| | Client agreements | Records as provided for under Article 25(5) of Directive 2014/65/EU | Article 25(5) Directive 2014/65/EU
  Article 58 of this Regulation |
| | Assessment of suitability and appropriateness | Content as provided for under paragraphs 2 and 3 of Article 25 of Directive 2014/65/EU and Articles 54, 55 and 60 of this Regulation | Article 25(2) and (3) of Directive 2014/65/EU
  Articles 54, 55 and 56 of this Regulation |
| Order handling |
| | Client order-handling – Aggregated transactions | Records as provided for under Articles 67 to 70 of this Regulation | Articles 24(1) and 28(1) of Directive 2014/65/EU
  Articles 67 to 70 of this Regulation |
| | Aggregation and allocation of trans-actions for own account | Records as provided for under Article 69 of this Regulation | Articles 24(1) and 28(1) of Directive 2014/65/EU
  Article 69 of this Regulation |
| Client Orders and transactions |
| | Record keeping of client orders or decision to deal | Records as provided for under Article 74 of this Regulation | Article 16(6) of Directive 2014/65/EU
  Article 74 of this Regulation |
| | Record keeping of transactions and order processing | Records as provided for under Article 75 of this Regulation | Article 16(6) of Directive 2014/65/EU
  Article 75 of this Regulation |
| Reporting to clients |
| | Obligation in respect of services provided to clients | Contents as provided for under Articles 59 to 63 of this Regulation | Paragraphs 1 and 6 of Article 24 and paragraphs 1 and 6 of Article 25 of Directive 2014/65/EU
  Articles 59 to 63 of this Regulation |
| Safeguarding of client assets |
| | Client financial instruments held by an investment firm | Records as provided for under Article 16(8) of Directive 2014/65/EU and under Article 2 of Commission Delegated Directive (EU) 2017/593 | Article 16(8) of Directive 2014/65/EU
  Article 2 of Delegated Directive (EU) 2017/593 |
| | Client funds held by an investment firm | Records as provided for under Article 16(9) of Directive 2014/65/EU and under Article 2 of Delegated Directive (EU) 2017/593 | Article 16(9) of Directive 2014/65/EU
  Article 2 of Delegated Directive (EU) 2017/593 |
| | Use of client financial instruments | Records provided for under Article 5 of Delegated Directive (EU) 2017/593 | Paragraphs 8, 9 and 10 of Article 16 of Directive 2014/65/EU
  Article 5 of Delegated Directive (EU) 2017/593 |
| Communication with clients |
| | Information about Costs and associated charges | Contents as provided for under Article 50 of this Regulation | Article 24(4), point (c) of Directive 2014/65/EU
  Article 50 of this Regulation |
| | Information about the investment firm and its services, financial instruments and safe-guarding of client assets | Content as provided for under Articles 47, 48 and 49 of this Regulation | Article 24(4) of Directive 2014/65/EU
  Articles 47, 48 and 49 of this Regulation |
| | Information to clients | Records of communication | Article 24(3) of Directive 2014/65/EU
  Article 46 of this Regulation |
| | Marketing communications (except in oral form) | Each marketing communication issued by the investment firm (except in oral form) as provided under Articles 44 and 46 of this Regulation | Article 24(3) of Directive 2014/65/EU
  Articles 44 and 46 of this Regulation |
| | Investment advice to retail clients | (i) The fact, time and date that investment advice was rendered and (ii) the financial instrument that was recommended (iii) the suitability report provided to the client | Article 25(6) of Directive 2014/65/EU
  Article 54 of this Regulation |
| | Investment research | Each item of investment research issued by the investment firm in a durable medium | Article 24(3) of Directive 2014/65/EU
  Articles 36 and 37 of this Regulation |
| Organisational requirements |
| | The firm’s business and internal organisation | Records as provided for under Article 21(1), point (f) of this Regulation | Paragraphs 2 to 10 of Article 16 of Directive 2014/65/EU
  Article 21(1), point (f) of this Regulation |
| | Compliance reports | Each compliance report to management body | Article 16(2) of Directive 2014/65/EU
  Article 22(2), point (c) and Article 25(2) of this Regulation |
| | Conflict of Interest record | Records as provided for under Article 35 of this Regulation | Article 16(3) of Directive 2014/65/EU
  Article 35 of this Regulation |
| | Inducements | The information disclosed to clients under Article 24(9) of Directive 2014/65/EU | Article 24(9) of Directive 2014/65/EU
  Article 11, 12 and 13 of Delegated Directive (EU) 2017/593 |
| | Risk management reports | Each risk management report to senior management | Article 16(5) of Directive 2014/65/EU
  Article 23(1), point (b) and Article 25(2) of this Regulation |
| | Internal audit reports | Each internal audit report to senior management | Article 16(5) of Directive 2014/65/EU
  Article 24 and Article 25(2) of this Regulation |
| | Complaints-handling records | Each complaint and the complaint handling measures taken to address the complaint | Article 16(2) of Directive 2014/65/EU
  Article 26 of this Regulation |
| | Records of personal transactions | Records as provided for under Article 29(5), point (c) of this Regulation | Article 16(2) of Directive 2014/65/EU
  Article 29(5), point (c) of this Regulation |

Nature of obligation

Type of record

Summary of content

Legislative reference

Client assessment

Information to clients

Content as provided for under Article 24(4) of Directive 2014/65/EU and Articles 44 to 51 of this Regulation

Article 24(4) of Directive 2014/65/EU

Articles 44 to 51 of this Regulation

Client agreements

Records as provided for under Article 25(5) of Directive 2014/65/EU

Article 25(5) Directive 2014/65/EU

Article 58 of this Regulation

Assessment of suitability and appropriateness

Content as provided for under paragraphs 2 and 3 of Article 25 of Directive 2014/65/EU and Articles 54, 55 and 60 of this Regulation

Article 25(2) and (3) of Directive 2014/65/EU

Articles 54, 55 and 56 of this Regulation

Order handling

Client order-handling – Aggregated transactions

Records as provided for under Articles 67 to 70 of this Regulation

Articles 24(1) and 28(1) of Directive 2014/65/EU

Articles 67 to 70 of this Regulation

Aggregation and allocation of trans-actions for own account

Records as provided for under Article 69 of this Regulation

Articles 24(1) and 28(1) of Directive 2014/65/EU

Article 69 of this Regulation

Client Orders and transactions

Record keeping of client orders or decision to deal

Records as provided for under Article 74 of this Regulation

Article 16(6) of Directive 2014/65/EU

Article 74 of this Regulation

Record keeping of transactions and order processing

Records as provided for under Article 75 of this Regulation

Article 16(6) of Directive 2014/65/EU

Article 75 of this Regulation

Reporting to clients

Obligation in respect of services provided to clients

Contents as provided for under Articles 59 to 63 of this Regulation

Paragraphs 1 and 6 of Article 24 and paragraphs 1 and 6 of Article 25 of Directive 2014/65/EU

Articles 59 to 63 of this Regulation

Safeguarding of client assets

Client financial instruments held by an investment firm

Records as provided for under Article 16(8) of Directive 2014/65/EU and under Article 2 of Commission Delegated Directive (EU) 2017/593

Article 16(8) of Directive 2014/65/EU

Article 2 of Delegated Directive (EU) 2017/593

Client funds held by an investment firm

Records as provided for under Article 16(9) of Directive 2014/65/EU and under Article 2 of Delegated Directive (EU) 2017/593

Article 16(9) of Directive 2014/65/EU

Article 2 of Delegated Directive (EU) 2017/593

Use of client financial instruments

Records provided for under Article 5 of Delegated Directive (EU) 2017/593

Paragraphs 8, 9 and 10 of Article 16 of Directive 2014/65/EU

Article 5 of Delegated Directive (EU) 2017/593

Communication with clients

Information about Costs and associated charges

Contents as provided for under Article 50 of this Regulation

Article 24(4), point (c) of Directive 2014/65/EU

Article 50 of this Regulation

Information about the investment firm and its services, financial instruments and safe-guarding of client assets

Content as provided for under Articles 47, 48 and 49 of this Regulation

Article 24(4) of Directive 2014/65/EU

Articles 47, 48 and 49 of this Regulation

Information to clients

Records of communication

Article 24(3) of Directive 2014/65/EU

Article 46 of this Regulation

Marketing communications (except in oral form)

Each marketing communication issued by the investment firm (except in oral form) as provided under Articles 44 and 46 of this Regulation

Article 24(3) of Directive 2014/65/EU

Articles 44 and 46 of this Regulation

Investment advice to retail clients

(i) The fact, time and date that investment advice was rendered and (ii) the financial instrument that was recommended (iii) the suitability report provided to the client

Article 25(6) of Directive 2014/65/EU

Article 54 of this Regulation

Investment research

Each item of investment research issued by the investment firm in a durable medium

Article 24(3) of Directive 2014/65/EU

Articles 36 and 37 of this Regulation

Organisational requirements

The firm’s business and internal organisation

Records as provided for under Article 21(1), point (f) of this Regulation

Paragraphs 2 to 10 of Article 16 of Directive 2014/65/EU

Article 21(1), point (f) of this Regulation

Compliance reports

Each compliance report to management body

Article 16(2) of Directive 2014/65/EU

Article 22(2), point (c) and Article 25(2) of this Regulation

Conflict of Interest record

Records as provided for under Article 35 of this Regulation

Article 16(3) of Directive 2014/65/EU

Article 35 of this Regulation

Inducements

The information disclosed to clients under Article 24(9) of Directive 2014/65/EU

Article 24(9) of Directive 2014/65/EU

Article 11, 12 and 13 of Delegated Directive (EU) 2017/593

Risk management reports

Each risk management report to senior management

Article 16(5) of Directive 2014/65/EU

Article 23(1), point (b) and Article 25(2) of this Regulation

Internal audit reports

Each internal audit report to senior management

Article 16(5) of Directive 2014/65/EU

Article 24 and Article 25(2) of this Regulation

Complaints-handling records

Each complaint and the complaint handling measures taken to address the complaint

Article 16(2) of Directive 2014/65/EU

Article 26 of this Regulation

Records of personal transactions

Records as provided for under Article 29(5), point (c) of this Regulation

Article 16(2) of Directive 2014/65/EU

Article 29(5), point (c) of this Regulation

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