The Markets in Financial Instruments (Capital Markets) (Amendment) Regulations 2021

JurisdictionUK Non-devolved
CitationSI 2021/774

2021 No. 774

Financial Services

The Markets in Financial Instruments (Capital Markets) (Amendment) Regulations 2021

Made 28th June 2021

Laid before Parliament 30th June 2021

Coming into force in accordance with regulation 1(2) and (3)

The Treasury, in exercise of the powers conferred by sections 141A(2), 286(1) and 428(3) of the Financial Services and Markets Act 20001and Article 50 of, and paragraphs 1(7), 1(9) and 1(10) of Part 1 of Schedule 3 to, Regulation (EU) No 600/2014of the European Parliament and of the Council of 15 May 2014 on Markets in Financial Instruments2, make the following Regulations:

S-1 Citation and commencement

Citation and commencement

1.—(1) These Regulations may be cited as the Markets in Financial Instruments (Capital Markets) (Amendment) Regulations 2021.

(2) Subject to paragraph (3), these Regulations come into force on 26th July 2021.

(3) Regulations 2(3) and (4)(b) and 3(2) and (11) come into force on 1st December 2021.

S-2 Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges, Clearing Houses and Central Securities Depositories) Regulations 2001

Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges, Clearing Houses and Central Securities Depositories) Regulations 2001

2.—(1) The Schedule to the Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges, Clearing Houses and Central Securities Depositories) Regulations 20013is amended as follows.

(2) Omit paragraph 4C (publication of data regarding execution of transactions).

(3) In paragraph 9A(2)(a)(i) (operation of a multilateral trading facility or an organised trading facility), for “IP completion day” substitute “1st December 2021”.

(4) In paragraph 9F (specific requirements for organised trading facilities: execution of orders)—

(a)

(a) omit sub-paragraph (6)(c) and (d);

(b)

(b) in sub-paragraph (9), for “IP completion day” substitute “1st December 2021”;

S-3 Commission Delegated Regulation (EU) 2017/565

Commission Delegated Regulation (EU) 2017/565

3.—(1) Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EUof 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 Directive4is amended as follows.

(2) In Article 2 (definitions)—

(a)

(a) in paragraph (14), for “IP completion day” substitute “1st December 2021”;

(b)

(b) in paragraph (16)—

(i) in sub-paragraph (a)—

(aa) omit “the FCA or by”;

(bb) omit “and”;

(ii) after sub-paragraph (a) insert—

“(aa)

“(aa) as they have effect on 1 December 2021, in the case of rules made by the FCA under FSMA, and”.

(3) In Article 3 (conditions applying to the provision of information)—

(a)

(a) in paragraph 1, after “is required to be provided in a durable medium” insert “to retail clients, or potential retail clients,”;

(b)

(b) in paragraph 1(a), for “firm and the client” substitute “firm and the retail client, or potential retail client,”;

(c)

(c) in paragraph 1(b), for “the person” substitute “the retail client, or potential retail client,”;

(d)

(d) after paragraph 1 insert—

S-1A

1A. Where the client or potential client is a retail client, or potential retail client, who has requested to receive the information on paper, that information must be provided on paper and free of charge.

S-1B

1B. Investment firms must provide all information required to be provided in a durable medium by this Regulation to clients or potential clients in electronic format, except where the client or potential client is a retail client, or potential retail client, when the provisions of paragraph 1 above apply.”;

(e)

(e) in paragraph 2(b), before “the client” insert “in the case of a retail client,”.

(4) In Article 46 (general requirements for information to clients)—

(a)

(a) in paragraph 2, for “Investment firms shall” insert “Subject to paragraph 2A, investment firms must”;

(b)

(b) after paragraph 2 insert—

S-2A

2A. Where the agreement to buy or sell a financial instrument is concluded using a means of distance communication, which prevents the delivery of the information on costs and charges before that conclusion—

(a) the investment firm must give the client or potential client the option of receiving the information on costs and charges over the telephone before the conclusion of the transaction; and

(b) subject to meeting the conditions referred to in paragraph 2B(a) and (b), the investment firm may provide the information on costs and charges to clients in—

(i) electronic format; or

(ii) where requested by a retail client or potential retail client, on paper,

without undue delay after the conclusion of the transaction.

S-2B

2B. The conditions referred to in paragraph 2A(b) are—

(a) the client or potential client has requested and consented to receiving the information without undue delay after the conclusion of the transaction; and

(b) the investment firm has given the client or potential client the option of delaying the conclusion of the transaction until the client has received the...

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