ARTICLE · 24 AUGUST 2018

Licensing Requirements For OTC Derivatives Providers Published (And Deadline Extended)

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The Consultation Report published with the Conduct Standard helpfully clarifies a number of questions that were being asked in the market.

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On 27 July 2018, the newly established Financial Sector Conduct Authority ("FSCA") published the final Conduct Standard, No 1 of 2018, setting out the Criteria for Authorisation of OTC Derivatives Providers ("ODPs").

The Regulations under the Financial Markets Act, 2012 (the "FMA Regulations") were promulgated in February of this year, effectively setting a deadline of 8 August 2018 for ODPs to apply for licences. However, with the Conduct Standard still in draft form until near the end of July, there was some uncertainty among potential applicants about whether they should have their applications ready for 8 August 2018 and exactly what the applications should contain.

Together with the Conduct Standard, the FSCA published a notice extending the deadline for applicants to 28 January 2019, affording potential applicants six months to prepare their ODP applications.

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