On 16 February 2022, the European Commission adopted a Delegated Regulation supplementing the Markets in Financial Instruments Regulation (MiFIR) by specifying rules of procedure for the exercise of the European Securities and Markets Authority’s power to impose fines or periodic penalty payments on data reporting service providers.

Article 38k(10) of MiFIR, empowers the Commission to adopt a delegated act to further specify the rules of procedure for the exercise of the power to impose fines or periodic penalty payments, including provisions on the rights of the defence, temporal provisions, and the collection of fines or periodic penalty payments, and the limitation periods for the imposition and enforcement of fines and periodic penalty payments.

The Council of the EU and the European Parliament will now scrutinise the Delegated Regulation.

The Delegated Regulation will enter into force and apply on the third day after its publication in the Official Journal of the EU.