Requirement (MIFID)
Article 5 General organisational requirements
Requirements MIFID - DIRECTIVE 2006/73/EC
Description
Description
1. Member States shall require investment firms to comply
with the following requirements:
(a) to establish, implement and maintain decision-making
procedures and an organisational structure which clearly
and in documented manner specifies reporting lines and
allocates functions and responsibilities;
(b) to ensure that their relevant persons are aware of the
procedures which must be followed for the proper
discharge of their responsibilities;
(c) to establish, implement and maintain adequate internal
control mechanisms designed to secure compliance with
decisions and procedures at all levels of the investment
firm;
(d) to employ personnel with the skills, knowledge and
expertise necessary for the discharge of the responsibilities
allocated to them;
(e) to establish, implement and maintain effective internal
reporting and communication of information at all relevant
levels of the investment firm;
(f) to maintain adequate and orderly records of their business
and internal organisation;
(g) to ensure that the performance of multiple functions by
their relevant persons does not and is not likely to prevent
those persons from discharging any particular function
soundly, honestly, and professionally.
Member States shall ensure that, for those purposes, investment
firms take into account the nature, scale and complexity of the
business of the firm, and the nature and range of investment
services and activities undertaken in the course of that business.
2. Member States shall require investment firms to establish,
implement and maintain systems and procedures that are
adequate to safeguard the security, integrity and confidentiality
of information, taking into account the nature of the information
in question.
3. Member States shall require investment firms to establish,
implement and maintain an adequate business continuity policy
aimed at ensuring, in the case of an interruption to their systems
and procedures, the preservation of essential data and functions,
and the maintenance of investment services and activities, or,
where that is not possible, the timely recovery of such data and
functions and the timely resumption of their investment services
and activities.
4. Member States shall require investment firms to establish,
implement and maintain accounting policies and procedures that
enable them, at the request of the competent authority, to deliver
in a timely manner to the competent authority financial reports
which reflect a true and fair view of their financial position and
which comply with all applicable accounting standards and rules.
5. Member States shall require investment firms to monitor
and, on a regular basis, to evaluate the adequacy and effectiveness
of their systems, internal control mechanisms and arrangements
established in accordance with paragraphs 1 to 4, and to take
appropriate measures to address any deficiencies.
Comment
Applies to Article 13(2) to (8) of Directive 2004/39/EC