Commission Delegated Regulation (EU) 2017/565

Preamble

Recitals

Chapter I - SCOPE AND DEFINITIONS

• amended Article 2 - Definitions Chapter I
• renamed Article 4 - Provision of investment service in an incidental manner(Article 2(1) of Directive 2014/65/EU) Chapter I was “Article 4”
• amendedrenamed Article 5 - Wholesale energy products that must be physically settled(Article 4(1)(2) of Directive 2014/65/EU) Chapter I was “Article 5”
• amendedrenamed Article 6 - Energy derivative contracts relating to oil and coal and wholesale energy products(Article 4(1)(2) of Directive 2014/65/EU) Chapter I was “Article 6”
• amendedrenamed Article 7 - Other derivative financial instruments(Article 4(1)(2) of Directive 2014/65/EU) Chapter I was “Article 7”
• amendedrenamed Article 8 - Derivatives under Section C(10) of Annex I to Directive 2014/65/EU(Article 4(1)(2) of Directive 2014/65/EU) Chapter I was “Article 8”
• renamed Article 9 - Investment advice(Article 4(1)(4) of Directive 2014/65/EU) Chapter I was “Article 9”
• amended Article 10 - Characteristics of other derivative contracts relating to currencies Chapter I
• renamed Article 11 - Money-market instruments(Article 4(1)(17) of Directive 2014/65/EU) Chapter I was “Article 11”
• renamed Article 12 - Systematic internalisers for shares, depositary receipts, ETFs, certificates and other similar financial instruments(Article 4(1)(20) of Directive 2014/65/EU) Chapter I was “Article 12”
• renamed Article 13 - Systematic internalisers for bonds(Article 4(1)(20) of Directive 2014/65/EU) Chapter I was “Article 13”
• renamed Article 14 - Systematic internalisers for structured finance products(Article 4(1)(20) of Directive 2014/65/EU) Chapter I was “Article 14”
• renamed Article 15 - Systematic internalisers for derivatives(Article 4(1)(20) of Directive 2014/65/EU) Chapter I was “Article 15”
• renamed Article 16 - Systematic internalisers for emission allowances(Article 4(1)(20) of Directive 2014/65/EU) Chapter I was “Article 16”
• renamed Article 17 - Relevant assessment periods(Article 4(1)(20) of Directive 2014/65/EU) Chapter I was “Article 17”
• renamed Article 18 - Algorithmic trading(Article 4(1)(39) of Directive 2014/65/EU) Chapter I was “Article 18”
• amendedrenamed Article 19 - High frequency algorithmic trading technique(Article 4(1)(40) of Directive 2014/65/EU) Chapter I was “Article 19”
• amendedrenamed Article 20 - Direct electronic access(Article 4(1)(41) of Directive 2014/65/EU) Chapter I was “Article 20”

Chapter II - ORGANISATIONAL REQUIREMENTS

• amendedrenamed Article 21 - General organisational requirements(Article 16(2) to (10) of Directive 2014/65/EU) Chapter II › Section 1 was “Article 21”
• amendedrenamed Article 22 - Compliance(Article 16(2) of Directive 2014/65/EU) Chapter II › Section 1 was “Article 22 - Compliance”
• amendedrenamed Article 23 - Risk management(Article 16(5) of Directive 2014/65/EU) Chapter II › Section 1 was “Article 23”
• renamed Article 24 - Internal audit(Article 16(5) of Directive 2014/65/EU) Chapter II › Section 1 was “Article 24”
• amendedrenamed Article 25 - Responsibility of senior management(Article 16(2) of Directive 2014/65/EU) Chapter II › Section 1 was “Article 25”
• amendedrenamed Article 26 - Complaints handling(Article 16(2) of Directive 2014/65/EU) Chapter II › Section 1 was “Article 26”
• amendedrenamed Article 27 - Remuneration policies and practices(Articles 16, 23 and 24 of Directive 2014/65/EU) Chapter II › Section 1 was “Article 27”
• renamed Article 28 - Scope of personal transactions(Article 16(2) of Directive 2014/65/EU) Chapter II › Section 1 was “Article 28”
• amendedrenamed Article 29 - Personal transactions(Article 16(2) of Directive 2014/65/EU) Chapter II › Section 1 was “Article 29”
• amendedrenamed Article 30 - Scope of critical and important operational functions(Article 16(2) and first subparagraph of Article 16(5) of Directive 2014/65/EU) Chapter II › Section 2 was “Article 30”
• amendedrenamed Article 31 - Outsourcing critical or important operational functions(Article 16(2) and of Article 16(5) first subparagraph of Directive 2014/65/EU) Chapter II › Section 2 was “Article 31”
• amendedrenamed Article 32 - Service providers located in third countries(Article 16(2) and first subparagraph of Article 16(5) of Directive 2014/65/EU) Chapter II › Section 2 was “Article 32”
• amendedrenamed Article 33 - Conflicts of interest potentially detrimental to a client(Article 16(3) and Article 23 of Directive 2014/65/EU) Chapter II › Section 3 was “Article 33”
• amendedrenamed Article 34 - Conflicts of interest policy(Articles 16(3) and 23 of Directive 2014/65/EU) Chapter II › Section 3 was “Article 34”
• renamed Article 35 - Record of services or activities giving rise to detrimental conflict of interest(Article 16(6) of Directive 2014/65/EU) Chapter II › Section 3 was “Article 35”
• amendedrenamed Article 36 - Investment research and marketing communications(Article 24(3) of Directive 2014/65/EU) Chapter II › Section 3 was “Article 36”
• amendedrenamed Article 37 - Additional organisational requirements in relation to investment research or marketing communications(Article 16(3) of Directive 2014/65/EU) Chapter II › Section 3 was “Article 37”
• amendedrenamed Article 38 - Additional general requirements in relation to underwriting or placing(Articles 16(3), 23 and 24 of Directive 2014/65/EU) Chapter II › Section 3 was “Article 38”
• amendedrenamed Article 39 - Additional requirements in relation to pricing of offerings in relation to issuance of financial instruments(Articles 16(3), 23 and 24 of Directive 2014/65/EU) Chapter II › Section 3 was “Article 39”
• amendedrenamed Article 40 - Additional requirements in relation to placing(Articles 16(3), 23 and 24 of Directive 2014/65/EU) Chapter II › Section 3 was “Article 40”
• amendedrenamed Article 41 - Additional requirements in relation to advice, distribution and self-placement(Articles 16(3), 23 and 24 of Directive 2014/65/EU) Chapter II › Section 3 was “Article 41”
• amendedrenamed Article 42 - Additional requirements in relation to lending or provision of credit in the context of underwriting or placement(Articles 16(3), 23 and 24 of Directive 2014/65/EU) Chapter II › Section 3 was “Article 42”
• renamed Article 43 - Record keeping in relation to underwriting or placing(Articles 16(3), 23 and 24 of Directive 2014/65/EU) Chapter II › Section 3 was “Article 43”

Chapter III - OPERATING CONDITIONS FOR INVESTMENT FIRMS

• amendedrenamed Article 44 - Fair, clear and not misleading information requirements(Article 24(3) of Directive 2014/65/EU) Chapter III › Section 1 was “Article 44”
• amendedrenamed Article 45 - Information concerning client categorisation(Article 24(4) of Directive 2014/65/EU) Chapter III › Section 1 was “Article 45”
• amendedrenamed Article 46 - General requirements for information to clients(Article 24(4) of Directive 2014/65/EU) Chapter III › Section 1 was “Article 46”
• amendedrenamed Article 47 - Information about the investment firm and its services for clients and potential clients(Article 24(4) of Directive 2014/65/EU) Chapter III › Section 1 was “Article 47”
• amendedrenamed Article 48 - Information about financial instruments(Article 24(4) of Directive 2014/65/EU) Chapter III › Section 1 was “Article 48”
• amendedrenamed Article 49 - Information concerning safeguarding of client financial instruments or client funds(Article 24(4) of Directive 2014/65/EU) Chapter III › Section 1 was “Article 49”
• amendedrenamed Article 50 - Information on costs and associated charges(Article 24(4) of Directive 2014/65/EU) Chapter III › Section 1 was “Article 50”
• renamed Article 51 - Information provided in accordance with Directive 2009/65/EU and Regulation (EU) No 1286/2014(Article 24(4) of Directive 2014/65/EU) Chapter III › Section 1 was “Article 51”
• amendedrenamed Article 52 - Information about investment advice(Article 24(4) of Directive 2014/65/EU) Chapter III › Section 2 was “Article 52”
• amendedrenamed Article 53 - Investment advice on an independent basis(Article 24(4) and 24(7) of Directive 2014/65/EU) Chapter III › Section 2 was “Article 53”
• amendedrenamed Article 54 - Assessment of suitability and suitability reports(Article 25(2) of Directive 2014/65/EU) Chapter III › Section 3 was “Article 54”
• amendedrenamed Article 55 - Provisions common to the assessment of suitability or appropriateness(Article 25(2) and 25(3) of Directive 2014/65/EU) Chapter III › Section 3 was “Article 55”
• amendedrenamed Article 56 - Assessment of appropriateness and related record-keeping obligations(Article 25(3) and 25(5) of Directive 2014/65/EU) Chapter III › Section 3 was “Article 56”
• renamed Article 57 - Provision of services in non-complex instruments(Article 25(4) of Directive 2014/65/EU) Chapter III › Section 3 was “Article 57”
• renamed Article 58 - Retail and Professional Client agreements(Article 24(1) and 25(5) of Directive 2014/65/EU) Chapter III › Section 3 was “Article 58”
• amendedrenamed Article 59 - Reporting obligations in respect of execution of orders other than for portfolio management(Article 25(6) of Directive 2014/65/EU) Chapter III › Section 4 was “Article 59”
• amendedrenamed Article 60 - Reporting obligations in respect of portfolio management(Article 25(6) of Directive 2014/65/EU) Chapter III › Section 4 was “Article 60”
• renamed Article 61 - Reporting obligations in respect of eligible counterparties(Article 24(4) and Article 25(6) of Directive 2014/65/EU) Chapter III › Section 4 was “Article 61”
• amendedrenamed Article 62 - Additional reporting obligations for portfolio management or contingent liability transactions(Article 25(6) of Directive 2014/65/EU) Chapter III › Section 4 was “Article 62”
• amendedrenamed Article 63 - Statements of client financial instruments or client funds(Article 25(6) of Directive 2014/65/EU) Chapter III › Section 4 was “Article 63”
• amendedrenamed Article 64 - Best execution criteria(Articles 27(1) and 24(1) of Directive 2014/65/EU) Chapter III › Section 5 was “Article 64”
• amendedrenamed Article 65 - Duty of investment firms carrying out portfolio management and reception and transmission of orders to act in the best interests of the client(Article 24(1) and 24(4) of Directive 2014/65/EU) Chapter III › Section 5 was “Article 65”
• amendedrenamed Article 66 - Execution policy(Article 27(5) and (7) of Directive 2014/65/EU) Chapter III › Section 5 was “Article 66”
• amendedrenamed Article 67 - General principles(Articles 28(1) and 24(1) of Directive 2014/65/EU) Chapter III › Section 6 was “Article 67”
• amendedrenamed Article 68 - Aggregation and allocation of orders(Articles 28(1) and 24(1) of Directive 2014/65/EU) Chapter III › Section 6 was “Article 68”
• amendedrenamed Article 69 - Aggregation and allocation of transactions for own account(Articles 28(1) and 24(1) of Directive 2014/65/EU) Chapter III › Section 6 was “Article 69”
• amendedrenamed Article 70 - Prompt fair and expeditious execution of client orders and publication of unexecuted client limit orders for shares traded on a trading venue(Article 28 of Directive 2014/65/EU) Chapter III › Section 6 was “Article 70”
• amendedrenamed Article 71 - Eligible counterparties(Article 30 of Directive 2014/65/EU) Chapter III › Section 7 was “Article 71”
• amendedrenamed Article 72 - Retention of records(Article 16(6) of Directive 2014/65/EU) Chapter III › Section 8 was “Article 72”
• renamed Article 73 - Record keeping of rights and obligations of the investment firm and the client(Article 25(5) of Directive 2014/65/EU) Chapter III › Section 8 was “Article 73”
• renamed Article 74 - Record keeping of client orders and decision to deal(Article 16(6) of Directive 2014/65/EU) Chapter III › Section 8 was “Article 74”
• renamed Article 75 - Record keeping of transactions and order processing(Article 16(6) of Directive 2014/65/EU) Chapter III › Section 8 was “Article 75”
• amendedrenamed Article 76 - Recording of telephone conversations or electronic communications(Article 16(7) of Directive 2014/65/EU) Chapter III › Section 8 was “Article 76”
• amendedrenamed Article 77 - Qualification as an SME(Article 4(1)(13) of Directive 2014/65/EU) Chapter III › Section 9 was “Article 77”
• amendedrenamed Article 78 - Registration as an SME growth market(Article 33(3) of Directive 2014/65/EU) Chapter III › Section 9 was “Article 78”
• amendedrenamed Article 79 - Deregistration as an SME growth market(Article 33(3) of Directive 2014/65/EU) Chapter III › Section 9 was “Article 79”

Chapter IV - OPERATING OBLIGATIONS FOR TRADING VENUES

• amendedrenamed Article 80 - Circumstances constituting significant damage to investors' interests and the orderly functioning of the market(Articles 32(1), 32(2), 52(1) and 52(2) of Directive 2014/65/EU) Chapter IV was “Article 80”
• amendedrenamed Article 81 - Circumstances where significant infringements of the rules of a trading venue or disorderly trading conditions or system disruptions in relation to a financial instrument may be assumed(Articles 31(2) and 54(2) of Directive 2014/65/EU) Chapter IV was “Article 81”
• amendedrenamed Article 82 - Circumstances where a conduct indicating behaviour that is prohibited under Regulation (EU) No 596/2014 may be assumed(Articles 31(2) and 54(2) of Directive 2014/65/EU) Chapter IV was “Article 82”

Chapter V - POSITION REPORTING IN COMMODITY DERIVATIVES

• amendedrenamed Article 83 - Position reporting(Article 58(1) of Directive 2014/65/EU) Chapter V was “Article 83”

Chapter VI - DATA PROVISION OBLIGATIONS FOR DATA REPORTING SERVICE PROVIDERS

• amendedrenamed Article 84 - Obligation to provide market data on a reasonable commercial basis(Article 64(1) and 65(1) of Directive 2014/65/EU) Chapter VI was “Article 84”
• amendedrenamed Article 85 - Provision of market data on the basis of cost(Article 64(1) and 65(1) of Directive 2014/65/EU) Chapter VI was “Article 85”
• amendedrenamed Article 86 - Obligation to provide market data on a non-discriminatory basis(Article 64(1) and 65(1) of Directive 2014/65/EU) Chapter VI was “Article 86”
• amendedrenamed Article 87 - Per user fees(Article 64(1) and 65(1) of Directive 2014/65/EU) Chapter VI was “Article 87”
• amendedrenamed Article 88 - Unbundling and disaggregating market data(Article 64(1) and 65(1) of Directive 2014/65/EU) Chapter VI was “Article 88”
• amendedrenamed Article 89 - Transparency obligation(Article 64(1) and 65(1) of Directive 2014/65/EU) Chapter VI was “Article 89”

Chapter VII - COMPETENT AUTHORITIES AND FINAL PROVISIONS

• amendedrenamed Article 90 - Determination of the substantial importance of the operations of a trading venue in a host Member State(Article 79(2) of Directive 2014/65/EU) Chapter VII was “Article 90”

Chapter VIII - FINAL PROVISIONS

• amended Article 91 - Entry into force and application Chapter VIII

Annexes

• amended Annex II - Costs and charges
• amended Annex IV - SECTION 1