Requirement (MIFID)
Article 15 Service providers located in third countries
Requirements MIFID - DIRECTIVE 2006/73/EC
Description
Description
1. In addition to the requirements set out in Article 14,
Member States shall require that, where an investment firm
outsources the investment service of portfolio management
provided to retail clients to a service provider located in a third
country, that investment firm ensures that the following
conditions are satisfied:
(a) the service provider must be authorised or registered in its
home country to provide that service and must be subject
to prudential supervision;
(b) there must be an appropriate cooperation agreement
between the competent authority of the investment firm
and the supervisory authority of the service provider.
2. Where one or both of those conditions mentioned in
paragraph 1 are not satisfied, an investment firm may outsource
investment services to a service provider located in a third
country only if the firm gives prior notification to its competent
authority about the outsourcing arrangement and the competent
authority does not object to that arrangement within a
reasonable time following receipt of that notification.
3. Without prejudice to paragraph 2, Member States shall
publish or require competent authorities to publish a statement
of policy in relation to outsourcing covered by paragraph 2. That
statement shall set out examples of cases where the competent
authority would not, or would be likely not to, object to an
outsourcing under paragraph 2 where one or both of the
conditions in points (a) and (b) of paragraph 1 are not met. It
shall include a clear explanation as to why the competent
authority considers that in such cases outsourcing would not
impair the ability of investment firms to fulfil their obligations
under Article 14.
4. Nothing in this article limits the obligations on investment
firms to comply with the requirements in Article 14.
5. Competent authorities shall publish a list of the supervisory
authorities in third countries with which they have cooperation
agreements that are appropriate for the purposes of point (b) of
paragraph 1.
Comment
Applies to Article 13(2) and first subparagraph of Article 13(5) of Directive 2004/39/EC