275. Deputy Edward Timmins asked the Tánaiste and Minister for Finance if he will require stockbrokers and investment firms operating in Ireland to provide greater transparency to retail investors regarding the treatment of partially filled trading orders, including the execution methods used and the associated commissions, fees, and costs charged to clients [49437/26]

There is a strong legislative framework in place to protect retail investors in Ireland. The European Union (Markets in Financial Instruments) Regulations 2017 (MiFID Regulations) transpose the EU Markets in Financial Instruments Directive into Irish law and govern the provision of investment services, including the execution of transactions on behalf of clients in respect of financial instruments.

Under Article 24 of the MiFID Regulations, investment firms are subject to an over-arching obligation to act honestly, fairly and professionally in accordance with the best interests of their clients. Acting in the client's best interest would include investment firms considering the overall costs and charges of available product options and, where several products could appropriately meet the client’s needs, recommending the most cost-efficient option, unless they could demonstrate that a more costly product might provide objectively greater benefits for that specific client.

More specifically, when executing transactions in financial instruments for clients, investment firms are subject to ‘best execution requirements’ which set standards of due care and diligence that firms must follow. Under Article 27 of the MiFID Regulations, investment firms must take all sufficient steps to obtain, when executing orders, the best possible result for their clients taking into account price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order.

The ‘best possible result’ shall be determined in terms of the total consideration, representing (a) the price of the financial instrument, and (b) the costs related to execution, including (i) all expenses incurred by the client which are directly related to the execution of the order, and (ii) execution venue fees, clearing and settlement fees and any other fees paid to third parties involved in the execution of the order.

Investment firms must provide appropriate information to clients about their order execution policy, and this information shall explain clearly, in sufficient detail and in a way that can be easily understood by clients, how orders will be executed by the investment firm for the client.

Investment firms must obtain the prior consent of their clients to the order execution policy and they must regularly monitor the effectiveness of their policy and arrangements to ensure their ability to obtain the best possible result for their clients.

Investment firms must be able to demonstrate to their clients, at their request, that they have executed their orders in accordance with the firm’s order execution policy.

The Central Bank of Ireland conducted a thematic review which examined investment firms’ application of the costs and charges disclosure requirements set out in the MiFID Regulations and Commission Delegated Regulation (EU) 2017/565 (MiFID II), after which a ‘Dear CEO’ www.centralbank.ie/docs/default-source/regulation/industry-market-sectors/investment-firms/mifid-firms/regulatory-requirements-and-guidance/common-supervisory-action-on-mifid-ii-costs-and-charges-requirements.pdf?sfvrsn=349a9d1d_4 letter was published on 1 December 2023 providing feedback to the industry on the findings of the review. The Central Bank expects firms to adopt a proactive approach to the continuous evaluation of the effectiveness of all of its arrangements and practices, including those relating to costs and charges disclosure requirements, to ensure that they are meeting the highest standards of investor protection and delivering fair outcomes that put their clients’ interests to the fore.

Any investor that remains dissatisfied with the conduct of their financial services provider, after making a complaint through the provider’s formal complaint process, may then wish to consider making a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO is the relevant statutory body in Ireland with responsibility for investigating and adjudicating individual complaints from consumers in relation to the conduct of regulated financial service providers. providers.

Separately, the European Commission adopted its https://ec.europa.eu/transparency/documents-register/detail?ref=C(2026)2300&lang=en on 5 April 2026, with Article 7 setting out the requirements for the monitoring of the order execution policy; and Article 8 setting out the requirements for the periodic assessment of the effectiveness of the order execution policy. This will be applicable in all Member States and will likely come into force in September 2026.

In future, MiFID II will be amended by the Retail Investment Strategy (RIS), with the final rules expected to be published in the EU’s Official Journal in December 2026 - new obligations for investment firms will become applicable 30 months after entry into force, especially new Article 16 - Product governance requirements around value for money assessments at product approval and Article 24a Inducements test with recalibrated criteria on providing a tangible benefit or and being proportionate to the value of the product and the level of service provided. Member States will have 18 months to transpose the Omnibus Directive.