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)
Date: 2021-04-21
Institutions: Directorate-General for Financial Stability, Financial Services and Capital Markets Union, European Commission
Subjects: company structure, exchange of information, financial instrument, financial legislation, investment company, management audit, provision of services, technical standard, trade information




L_2021277EN.01000601.xml










2.8.2021   


EN


Official Journal of the European Union


L 277/6








            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.












(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,





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).’;"
                        










(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
            





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

(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).




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






            ’