CELEX: 32021R1254
Language: en
Date: 2021-04-21 00:00:00
Title: 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)

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
                              
                           
               ’