Requirement (MIFID)
Article 13 Meaning of critical and important operational functions
Requirements MIFID - DIRECTIVE 2006/73/EC
Description
Description
1. For the purposes of the first subparagraph of Article 13(5) of
Directive 2004/39/EC, an operational function shall be regarded
as critical or important if a defect or failure in its performance
would materially impair the continuing compliance of an
investment firm with the conditions and obligations of its
authorisation or its other obligations under Directive 2004/39/
EC, or its financial performance, or the soundness or the
continuity of its investment services and activities.
2. Without prejudice to the status of any other function, the
following functions shall not be considered as critical or
important for the purposes of paragraph 1:
(a) the provision to the firm of advisory services, and other
services which do not form part of the investment business
of the firm, including the provision of legal advice to the
firm, the training of personnel of the firm, billing services
and the security of the firm's premises and personnel;
(b) the purchase of standardised services, including market
information services and the provision of price feeds.
Comment
Applies to Article 13(2) and first subparagraph of Article 13(5) of Directive 2004/39/EC