AI Summary of Article 5 Requirement for authorisation
This Chapter mandates that all Member States require prior authorisation for investment services and activities conducted professionally. Authorisation is granted by the competent authority of the home Member State, ensuring regulatory compliance.
Moreover, Member States must register all investment firms, providing public access to pertinent information regarding their authorised services. This register supports transparency, with ESMA maintaining an updated list of all Union investment firms. The strict oversight extends to ensuring that investment firms adhere to specific jurisdictional requirements regarding their head offices, thereby reinforcing the integrity of investment operations.
Article 5 Requirement for authorisation
1. Each Member State shall require that the provision of investment services and/or the performance of investment activities as a regular occupation or business on a professional basis be subject to prior authorisation in accordance with this Chapter. Such authorisation shall be granted by the home Member State competent authority designated in accordance with Article 67.
2. By way of derogation from paragraph 1, Member States shall authorise any market operator to operate an MTF or an OTF, subject to the prior verification of their compliance with this Chapter.
3. Member States shall register all investment firms. The register shall be publicly accessible and shall contain information on the services or activities for which the investment firm is authorised. It shall be updated on a regular basis. Every authorisation shall be notified to ESMA.
ESMA shall establish a list of all investment firms in the Union. That list shall contain information on the services or activities for which each investment firm is authorised and it shall be updated on a regular basis. ESMA shall publish and keep up-to-date that list on its website.