
COMMISSION DELEGATED REGULATION (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of 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 Directive (Text with EEA relevance) (revoked) 

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CHAPTER I
SCOPE AND DEFINITIONS

                    Application
                  
Article A1 
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Subject-matter and scope
Article 1 
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Definitions
Article 2 
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Conditions applying to the provision of information
Article 3 
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Provision of investment service in an incidental manner ...
Article 4 
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Wholesale energy products that must be physically settled ...
Article 5 
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Energy derivative contracts relating to oil and coal and wholesale energy products ...
Article 6 
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Other derivative financial instruments ...
Article 7 
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Derivatives under  paragraph 10 of Part 1 of Schedule 2 to the Regulated Activities Order  ...
Article 8 
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Investment advice ...
Article 9 
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Characteristics of other derivative contracts relating to currencies
Article 10 
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Money-market instruments ...
Article 11 
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Systematic internalisers for shares, depositary receipts, ETFs, certificates and other similar financial instruments ...
Article 12 
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Systematic internalisers for bonds ...
Article 13 
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Systematic internalisers for structured finance products ...
Article 14 
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Systematic internalisers for derivatives ...
Article 15 
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Systematic internalisers for emission allowances ...
Article 16 
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                    Transitional period: data for calculations
                  
Article 16ZA 
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                  Participation in matching arrangements
               

                     Article 16a
                   
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Relevant assessment periods ...
Article 17 
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Algorithmic trading ...
Article 18 
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High frequency algorithmic trading technique ...
Article 19 
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Direct electronic access ...
Article 20 
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CHAPTER II
ORGANISATIONAL REQUIREMENTS
SECTION 1
Organisation
General organisational requirements ...
Article 21 
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Compliance ...
Article 22 
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Risk management ...
Article 23 
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Internal audit ...
Article 24 
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Responsibility of senior management ...
Article 25 
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Complaints handling ...
Article 26 
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Remuneration policies and practices ...
Article 27 
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Scope of personal transactions ...
Article 28 
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Personal transactions ...
Article 29 
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SECTION 2
Outsourcing
Scope of critical and important operational functions ...
Article 30 
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Outsourcing critical or important operational functions ...
Article 31 
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Service providers located in third countries ...
Article 32 
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SECTION 3
Conflicts of interest
Conflicts of interest potentially detrimental to a client ...
Article 33 
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Conflicts of interest policy ...
Article 34 
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Record of services or activities giving rise to detrimental conflict of interest ...
Article 35 
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Investment research and marketing communications ...
Article 36 
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Additional organisational requirements in relation to investment research or marketing communications ...
Article 37 
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Additional general requirements in relation to underwriting or placing ...
Article 38 
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Additional requirements in relation to pricing of offerings in relation to issuance of financial instruments ...
Article 39 
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Additional requirements in relation to placing ...
Article 40 
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Additional requirements in relation to advice, distribution and self-placement  ... 
Article 41 
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Additional requirements in relation to lending or provision of credit in the context of underwriting or placement ...
Article 42 
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Record keeping in relation to underwriting or placing ...
Article 43 
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CHAPTER III
OPERATING CONDITIONS FOR INVESTMENT FIRMS
SECTION 1
Information to clients and potential clients
Fair, clear and not misleading information requirements ...
Article 44 
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Information concerning client categorisation ...
Article 45 
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General requirements for information to clients ...
Article 46 
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Information about the investment firm and its services for clients and potential clients ...
Article 47 
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Information about financial instruments ...
Article 48 
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Information concerning safeguarding of client financial instruments or client funds ...
Article 49 
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Information on costs and associated charges ...
Article 50 
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Information provided  in relation to units in collective investment undertakings or PRIIPs ...
Article 51 
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SECTION 2
Investment advice
Information about investment advice ...
Article 52 
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Investment advice on an independent basis ...
Article 53 
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SECTION 3
Assessment of suitability and appropriateness
Assessment of suitability and suitability reports ...
Article 54 
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Provisions common to the assessment of suitability or appropriateness ...
Article 55 
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Assessment of appropriateness and related record-keeping obligations ...
Article 56 
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Provision of services in non-complex instruments ...
Article 57 
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Retail and Professional Client agreements ...
Article 58 
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SECTION 4
Reporting to clients
Reporting obligations in respect of execution of orders other than for portfolio management ...
Article 59 
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Reporting obligations in respect of portfolio management ...
Article 60 
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Reporting obligations in respect of eligible counterparties ...
Article 61 
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Additional reporting obligations for portfolio management or contingent liability transactions ...
Article 62 
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Statements of client financial instruments or client funds ...
Article 63 
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SECTION 5
Best execution
Best execution criteria ...
Article 64 
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Duty of investment firms carrying out portfolio management and reception and transmission of orders to act in the best interests of the client ...
Article 65 
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Execution policy  ... 
Article 66 
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SECTION 6
Client order handling
General principles ...
Article 67 
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Aggregation and allocation of orders ...
Article 68 
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Aggregation and allocation of transactions for own account ...
Article 69 
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Prompt fair and expeditious execution of client orders and publication of unexecuted client limit orders for shares traded on a trading venue ...
Article 70 
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SECTION 7
Eligible counterparties
Eligible counterparties ...
Article 71 
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SECTION 8
Record-keeping
Retention of records ...
Article 72 
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Record keeping of rights and obligations of the investment firm and the client ...
Article 73 
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Record keeping of client orders and decision to deal ...
Article 74 
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Record keeping of transactions and order processing ...
Article 75 
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Recording of telephone conversations or electronic communications ...
Article 76 
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SECTION 9
SME growth markets
Qualification as an SME ...
Article 77 
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Registration as an SME growth market ...
Article 78 
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Deregistration as an SME growth market ...
Article 79 
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CHAPTER IV
OPERATING OBLIGATIONS FOR TRADING VENUES
Circumstances constituting significant damage to investors' interests and the orderly functioning of the market ...
Article 80 
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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 ...
Article 81 
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Circumstances where a conduct indicating behaviour that is prohibited under Regulation (EU) No 596/2014 may be assumed ...
Article 82 
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CHAPTER V
POSITION REPORTING IN COMMODITY DERIVATIVES
Position reporting ...
Article 83 
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CHAPTER VI
DATA PROVISION OBLIGATIONS FOR DATA REPORTING SERVICE PROVIDERS
Obligation to provide market data on a reasonable commercial basis ...
Article 84 
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Provision of market data on the basis of cost ...
Article 85 
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Obligation to provide market data on a non-discriminatory basis ...
Article 86 
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Per user fees ...
Article 87 
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Unbundling and disaggregating market data ...
Article 88 
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Transparency obligation ...
Article 89 
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CHAPTER VII
COMPETENT AUTHORITIES AND FINAL PROVISIONS
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)
Article 90 
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CHAPTER VIII
FINAL PROVISIONS
Entry into force and application
Article 91 
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ANNEX I
Record-keepingMinimum list of records to be kept by investment firms depending upon the nature of their activities . References to provisions in Directive 2014/65/EU are to be read as references to the provisions in the UK law on markets in financial instruments which implemented those provisions.  

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ANNEX II
Costs and chargesIdentified costs that should form part of the costs to be disclosed to the clients 

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ANNEX III
Requirement for operators of trading venues to immediately inform their national competent authority
SECTION A Signals that may indicate significant infringements of the rules of a trading venue or disorderly trading conditions or system disruptions in relation to a financial instrument 
Significant infringements of the rules of a trading venue 
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 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disorderly trading conditions 
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
System disruptions 
 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SECTION B Signals that may indicate abusive behaviour under Regulation (EU) No 596/2014 
Signals of possible insider dealing or market manipulation 
 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Signals of possible insider dealing 
 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Signals of possible market manipulation 

The signals described below in points 18 to 23 are particularly relevant in an automated trading environment.
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 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Signals for cross-product market manipulation, including across different trading venues 

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 25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ANNEX IV
SECTION 1
Record keeping of client orders and decision to deal
1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SECTION 2
Record keeping of transactions and order processing
1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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