Passporting In / Out for MiFID Firms

MiFID Passporting In / Out Framework

MiFID sets out the principles of a single authorisation for firms. This may allow a MiFID investment firm to provide investment services and/or perform investment activities throughout the EEA, provided it is authorised in Ireland for these activities first, through:

• the establishment of a branch in another Member State; or
• the free provision of services on a cross border basis (i.e. without establishing a permanent presence); or
• providing arrangements to facilitate access to an MTF or an OTF; or
• the use of a tied agent established in another Member State.

In this regard, all EEA Competent Authorities uphold practical co-operation for the purpose of facilitating the passport notification process for MiFID investment firms.

MiFID investment firms and market operators should consult the appropriate level two texts, which have been published in the Official Journal of the European Union, which include, Commission Implementing Regulation (EU) 2017/2382.

Existing notifications made under MiFID I will remain valid under MiFID II.

An Irish MiFID investment firm is required to notify the Central Bank of Ireland (the Central Bank) of any change in respect of the provision of cross border services, including the use of EEA based tied agents or the operation of a branch, at least one month before implementing the proposed change.

Branch

An Irish MiFID investment firm wishing to establish a branch in another Member State must communicate certain information to the Central Bank, which includes a ‘programme of operations’ setting out, amongst other things:

• the investment services and/or activities to be offered;
• the business plan and organisational structure of the branch;
• if the branch intends to use a tied agent; and
• other related information.

Where the Central Bank has found that the information contained in the notification is complete and correct, and provided the Central Bank has no reason to doubt the adequacy of the administrative structure or the financial situation of the firm, taking into account the services that the firm intends to provide, it must be communicated to the Competent Authority of the host Member State within three months of its receipt.

Please note that this form should also be used to inform the Central Bank of any changes to the particulars of a branch passport notification.

Cross Border Services and/or Activities

An Irish MiFID investment firm or market operator wishing to provide  arrangements in another Member State to facilitate access to an MTF or an OTF must notify the Central Bank. The Competent Authority of the home Member State shall communicate the notification within one month of its receipt to the competent authority of the host Member State(s).

Please note that this form should also be used to inform the Central Bank of any changes to the particulars of the access to an MTF/OTF notification.

Access to an MTF or an OTF

An Irish MiFID investment firm or market operator wishing to provide  arrangements in another Member State to facilitate access to an MTF or an OTF must notify the Central Bank. The Competent Authority of the home Member State shall communicate the notification within one month of its receipt to the competent authority of the host Member State(s).

Please note that this form should also be used to inform the Central Bank of any changes to the particulars of the access to an MTF/OTF notification.

Tied agents based in other EEA countries

An Irish MiFID investment firm wishing to use a tied agent established in another Member State must notify the Central Bank in respect of each tied agent.

Also an Irish MiFID investment firm wishing to establish a branch that intends to use a tied agent must notify the Central Bank in respect of each tied agent. (Separate notifications are required in respect of each tied agent.)

Where the Central Bank has found that the information contained in the notification is complete and correct, it must be communicated to the Competent Authority of the host Member State(s) within three months of its receipt.

Please note that this form should also be used to inform the Central Bank of any changes to the particulars of a tied agent passport notification.

Termination of activities of a branch or a tied agent in another EEA country

Where the operations of a branch are terminated or the use of a tied agent established in another Member State will cease, the Irish MiFID Investment Firm is required to inform the Central Bank.