MAR 9.2 Authorisation and verification

MAR 9 Annex 1D and MAR 9 Annex 2D are derived from Annex I and Annex II respectively of MiFID ITS 3.

1MAR 9 Annex 3D requires completion of Annex I of MiFID ITS 3 in the case of an extension of authorisation and, if relevant, Annex II of MiFID ITS 3 if the members of the management body are different from the existing authorised data reporting services provider.

4When the data reporting services provider wishes to vary or cancel all of its data reporting service authorisation, it should engage with the FCA as early as possible. As part of its supervisory approach set out in MAR 9.4.1G, the FCA expects to continue to have an open, cooperative and constructive relationship with the data reporting services provider for the whole duration of the cancellation process.

4As set out in the form at MAR 9 Annex 4D, the data reporting services provider must provide in its request for cancellation a plan which sets out how it will cease all of its data reporting services in an orderly manner (wind-down plan). The wind-down plan should promote and protect the integrity of the financial markets and the interests of the data reporting services provider’s clients. The FCA expects at the minimum the wind-down plan to:

1. (1)

   4set out the governance arrangements and identify a person or group within its management body to ensure the effective and prudent management, oversight and implementation of the wind-down plan;

2. (2)

   4set out the arrangements for the retention of key individuals of the data reporting services provider in relation to the management, oversight and implementation of the wind-down plan;

3. (3)

   4set out communications plans that consider the content, timing and methods of communications to stakeholders and relevant regulators (FCA, overseas regulators etc.);

4. (4)

   4identify clients who will be affected by the cancellation of the data reporting services provider’s authorisation and set out the arrangements to support the transfer of such clients to a new data reporting services provider; and

5. (5)

   4demonstrate that the timings in the wind-down plan are reasonable.

4Where a data reporting services provider wishes to cancel all of its data reporting service authorisation, it must continue to comply with the requirements in the DRS Regulations up until its authorisation is cancelled, in particular in relation to publishing trade reports or submitting details of transactions to the FCA. The FCA expects the data reporting services provider to provide a written confirmation at the end of the cancellation process confirming compliance with the DRS Regulations