AI Summary of Article 27i Organisational requirements for ARMs
An Approved Reporting Mechanism (ARM) must establish robust policies to ensure timely reporting under Article 26, with submissions due by the close of the following working day post-transaction. To mitigate conflicts of interest, particularly for ARMs also functioning as market operators or investment firms, distinct operational protocols must be in place to separate various business functions.
Compliance with Regulation (EU) 2022/2554 concerning the security of network and information systems is mandatory. Additionally, ARMs are responsible for maintaining accurate transaction reports by identifying errors or omissions, both from investment firms and internally, to facilitate corrections promptly, thus ensuring transparency and integrity in reporting.
Article 27i Organisational requirements for ARMs
1. An ARM shall have adequate policies and arrangements in place to report the information required under Article 26 as quickly as possible, and no later than the close of the working day following the day upon which the transaction took place.
2. The ARM shall operate and maintain effective administrative arrangements designed to prevent conflicts of interest with its clients. In particular, an ARM that is also a market operator or investment firm shall treat all information collected in a non-discriminatory fashion and shall operate and maintain appropriate arrangements to separate different business functions.
3. An ARM shall comply with the requirements concerning the security of network and information systems set out in Regulation (EU) 2022/2554.
4. The ARM shall have systems in place that can effectively check transaction reports for completeness, identify omissions and obvious errors caused by the investment firm, and where such error or omission occurs, to communicate details of the error or omission to the investment firm and request re-transmission of any such erroneous reports.