Commission Delegated Regulation (EU) 2021/1254 of 21 April 2021 correcting Delegated Regulation (EU) 2017/565 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive (Text with EEA relevance)
Commission Delegated Regulation (EU) 2021/1254of 21 April 2021correcting Delegated Regulation (EU) 2017/565 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive(Text with EEA relevance) THE EUROPEAN COMMISSION,Having regard to the Treaty on the Functioning of the European Union,Having regard to Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EUOJ L 173, 12.6.2014, p. 349., and in particular Article 16(12) and Article 27(9) thereof,Whereas:(1)Errors appeared in Article 1(1) of Commission Delegated Regulation (EU) 2017/565Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive (OJ L 87, 31.3.2017, p. 1). as it was requiring the application of Article 59(4), Article 60 and Chapter IV of that Regulation, instead of Article 64(4), Article 65 and Chapter VIII.(2)Errors appeared in several cross-references in Annex I to Delegated Regulation (EU) 2017/565, more precisely under "Client assessment", "Order handling", "Client order and transactions", "Reporting to clients", "Communication with clients" and "Organisational requirements".(3)Delegated Regulation (EU) 2017/565 should therefore be corrected accordingly,HAS ADOPTED THIS REGULATION:
Article 1Delegated Regulation (EU) 2017/565 is corrected as follows:(1)in Article 1, paragraph 1 is replaced by the following:"1.Chapter II, and Sections 1 to 4, Article 64(4), Article 65 and Sections 6 to 8 of Chapter III and, to the extent they relate to those provisions, Chapter I and Chapter VIII of this Regulation shall apply to management companies when providing services in accordance with Article 6(4) of Directive 2009/65/EC and Article 6(6) of Directive 2011/61/EU of the European Parliament and of the CouncilDirective 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 (OJ L 174, 1.7.2011, p. 1).";.
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Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 (OJ L 174, 1.7.2011, p. 1).";(2)Annex I is replaced by the text in the Annex to this Regulation.
Article 2This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Brussels, 21 April 2021.For the CommissionThe PresidentUrsula von der LeyenANNEX

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ANNEX IRecord-keeping
Minimum list of records to be kept by investment firms depending upon the nature of their activities
Nature of obligationType of recordSummary of contentLegislative reference
Client assessment
Information to clientsContent as provided for under Article 24(4) of Directive 2014/65/EU and Articles 44 to 51 of this RegulationArticle 24(4) of Directive 2014/65/EUArticles 44 to 51 of this Regulation
Client agreementsRecords as provided for under Article 25(5) of Directive 2014/65/EUArticle 25(5) Directive 2014/65/EUArticle 58 of this Regulation
Assessment of suitability and appropriatenessContent as provided for under paragraphs 2 and 3 of Article 25 of Directive 2014/65/EU and Articles 54, 55 and 60 of this RegulationArticle 25(2) and (3) of Directive 2014/65/EUArticles 54, 55 and 56 of this Regulation
Order handling
Client order-handling – Aggregated transactionsRecords as provided for under Articles 67 to 70 of this RegulationArticles 24(1) and 28(1) of Directive 2014/65/EUArticles 67 to 70 of this Regulation
Aggregation and allocation of trans-actions for own accountRecords as provided for under Article 69 of this RegulationArticles 24(1) and 28(1) of Directive 2014/65/EUArticle 69 of this Regulation
Client Orders and transactions
Record keeping of client orders or decision to dealRecords as provided for under Article 74 of this RegulationArticle 16(6) of Directive 2014/65/EUArticle 74 of this Regulation
Record keeping of transactions and order processingRecords as provided for under Article 75 of this RegulationArticle 16(6) of Directive 2014/65/EUArticle 75 of this Regulation
Reporting to clients
Obligation in respect of services provided to clientsContents as provided for under Articles 59 to 63 of this RegulationParagraphs 1 and 6 of Article 24 and paragraphs 1 and 6 of Article 25 of Directive 2014/65/EUArticles 59 to 63 of this Regulation
Safeguarding of client assets
Client financial instruments held by an investment firmRecords as provided for under Article 16(8) of Directive 2014/65/EU and under Article 2 of Commission Delegated Directive (EU) 2017/593Article 16(8) of Directive 2014/65/EUArticle 2 of Delegated Directive (EU) 2017/593
Client funds held by an investment firmRecords as provided for under Article 16(9) of Directive 2014/65/EU and under Article 2 of Delegated Directive (EU) 2017/593Article 16(9) of Directive 2014/65/EUArticle 2 of Delegated Directive (EU) 2017/593
Use of client financial instrumentsRecords provided for under Article 5 of Delegated Directive (EU) 2017/593Paragraphs 8, 9 and 10 of Article 16 of Directive 2014/65/EUArticle 5 of Delegated Directive (EU) 2017/593
Communication with clients
Information about Costs and associated chargesContents as provided for under Article 50 of this RegulationArticle 24(4), point (c) of Directive 2014/65/EUArticle 50 of this Regulation
Information about the investment firm and its services, financial instruments and safe-guarding of client assetsContent as provided for under Articles 47, 48 and 49 of this RegulationArticle 24(4) of Directive 2014/65/EUArticles 47, 48 and 49 of this Regulation
Information to clientsRecords of communicationArticle 24(3) of Directive 2014/65/EUArticle 46 of this Regulation
Marketing communications (except in oral form)Each marketing communication issued by the investment firm (except in oral form) as provided under Articles 44 and 46 of this RegulationArticle 24(3) of Directive 2014/65/EUArticles 44 and 46 of this Regulation
Investment advice to retail clients(i) The fact, time and date that investment advice was rendered and (ii) the financial instrument that was recommended (iii) the suitability report provided to the clientArticle 25(6) of Directive 2014/65/EUArticle 54 of this Regulation
Investment researchEach item of investment research issued by the investment firm in a durable mediumArticle 24(3) of Directive 2014/65/EUArticles 36 and 37 of this Regulation
Organisational requirements
The firm’s business and internal organisationRecords as provided for under Article 21(1), point (f) of this RegulationParagraphs 2 to 10 of Article 16 of Directive 2014/65/EUArticle 21(1), point (f) of this Regulation
Compliance reportsEach compliance report to management bodyArticle 16(2) of Directive 2014/65/EUArticle 22(2), point (c) and Article 25(2) of this Regulation
Conflict of Interest recordRecords as provided for under Article 35 of this RegulationArticle 16(3) of Directive 2014/65/EUArticle 35 of this Regulation
InducementsThe information disclosed to clients under Article 24(9) of Directive 2014/65/EUArticle 24(9) of Directive 2014/65/EUArticle 11, 12 and 13 of Delegated Directive (EU) 2017/593
Risk management reportsEach risk management report to senior managementArticle 16(5) of Directive 2014/65/EUArticle 23(1), point (b) and Article 25(2) of this Regulation
Internal audit reportsEach internal audit report to senior managementArticle 16(5) of Directive 2014/65/EUArticle 24 and Article 25(2) of this Regulation
Complaints-handling recordsEach complaint and the complaint handling measures taken to address the complaintArticle 16(2) of Directive 2014/65/EUArticle 26 of this Regulation
Records of personal transactionsRecords as provided for under Article 29(5), point (c) of this RegulationArticle 16(2) of Directive 2014/65/EUArticle 29(5), point (c) of this Regulation