Requirement (MIFID)
Article 62 Precautionary measures to be taken by host Member States
Requirements MIFID - DIRECTIVE 2004/39/EC
Description
Description
1. Where the competent authority of the host Member State has clear
and demonstrable grounds for believing that an investment firm acting
within its territory under the freedom to provide services is in breach of
the obligations arising from the provisions adopted pursuant to this
Directive or that an investment firm that has a branch within its territory
is in breach of the obligations arising from the provisions adopted
pursuant to this Directive which do not confer powers on the competent
authority of the host Member State, it shall refer those findings to the
competent authority of the home Member State.
If, despite the measures taken by the competent authority of the home
Member State or because such measures prove inadequate, the investment
firm persists in acting in a manner that is clearly prejudicial to the
interests of host Member State investors or the orderly functioning of
markets, the competent authority of the host Member State, after
informing the competent authority of the home Member State shall take
all the appropriate measures needed in order to protect investors and the
proper functioning of the markets. This shall include the possibility of
preventing offending investment firms from initiating any further transactions
within their territories. The Commission shall be informed of
such measures without delay.
2. Where the competent authorities of a host Member State ascertain
that an investment firm that has a branch within its territory is in breach
of the legal or regulatory provisions adopted in that State pursuant to
those provisions of this Directive which confer powers on the host
Member State's competent authorities, those authorities shall require the
investment firm concerned to put an end to its irregular situation.
If the investment firm concerned fails to take the necessary steps, the
competent authorities of the host Member State shall take all appropriate
measures to ensure that the investment firm concerned puts an end to its
irregular situation. The nature of those measures shall be communicated
to the competent authorities of the home Member State.