Events listed in [ESMA] European Securities and Markets Authority
National regulators strengthen their supervision of the compliance function
ID 24206
ESMA published a follow-up report assessing the progress of certain NCAs in strengthening their supervisory frameworks and practices related to the compliance function under MiFID I. The report focused on the NCAs of CySEC (Cyprus), HCMC (Greece), CBI (Iceland), AFM (Netherlands), and ATVP (Slovenia), which were part of the original peer review conducted in 2017. According to the report, these NCAs have made **significant ...
[ESMA22-1669215091-5374 ] SMSG advice to the ESA’s Joint Consultation Paper on ...
ID 24198
The SMSG provided advice to ESMA on the Joint Consultation Paper regarding the Review of SFDR Delegated Regulation on PAI and financial product disclosures. The SMSG expressed concerns about potential discrepancies arising from the draft Delegated Act on ESRS and called for alignment to limit reporting burden on investee companies. There were differing opinions on the inclusion of new social PAI indicators, with some ...
ESMA highlights risks arising from securities lending to retail investors
ID 24193
ESMA has issued a public statement on securities lending to retail clients, emphasizing the risks and investor protection concerns associated with this practice. Securities lending and other SFTs can provide extra returns on financial instruments, but they also come with significant risks such as counterparty and collateral shortfall risk. To protect retail investors, ESMA outlines the obligations of firms engaged in securities lending and ...
ESMA does not find evidence to ban pre-hedging but warns on risks
ID 24185
ESMA has released a Final Report on pre-hedging based on the feedback received to the 2022 Call for Evidence (eventid=16744). Pre-hedging is a voluntary market practice where liquidity providers hedge their inventory risk in anticipation of potential incoming transactions. ESMA acknowledges that pre-hedging can give rise to conflicts of interest or abusive behaviors, but it does not find sufficient evidence to ban this practice ...
ESMA seeks first input on detailed rules for crypto markets
ID 24182
ESMA has taken a significant step in regulating the crypto markets by publishing its first consultation package under the MiCA. MiCA is a comprehensive framework aimed at overseeing and supervising cryptoasset-related activities within the EU. In this initial consultation, ESMA seeks feedback from stakeholders on proposed rules for CASPs to ensure that the rapidly evolving crypto market operates under robust regulatory standards. The consultation ...
[ESMA34-45-1580 ] Sustainable Finance – implementation timeline
ID 24181
ESMA has published an updated graphic providing – in form of a timeline – an overview of regulations pertaining to sustainable finance that came into force since the beginning of 2021 or will come into force in the coming years. The regulations all require certain disclosures on sustainability, thereby ranging from disclosures of KPIs under the TR, to disclosures of PAIs under the SFDR. ...
ESMA provides insights into the expected sustainability disclosures in prospectuses
ID 24165
ESMA has issued a Public Statement regarding the expected sustainability disclosures in prospectuses. The statement outlines ESMA’s expectations on how specific disclosure requirements related to sustainability matters in equity and non-equity prospectuses should be met considering the ESG transition. The main objectives of this statement are to ensure a coordinated approach by NCAs in scrutinizing sustainability-related disclosures, provide issuers and advisors with an ...
Compliance table on Guidelines on certain aspects of the MiFID II appropriateness ...
ID 24146
On 11 July 2023, ESMA has published a revised version of the compliance table for its Guidelines on certain aspects of the MiFID II appropriateness and execution-only requirements (ESMA35-43-3006). Comparing the current compliance table (ESMA35-43-3327) with the previous one reveals that Germany now complies with the ESMA guidelines (eventid=22048).
ESMA updates its guidance on the definition of advice in a supervisory briefing
ID 24136
ESMA released a supervisory briefing on the definition of advice under MiFID II. The briefing updates the CESR Q&A on Understanding the Definition of Advice under MiFID to align it with new business models and technological developments. It is intended for use by the NCAs in their supervisory activities and also provides guidance to investment firms. The supervisory briefing covers several topics, including the ...
ESMA publishes Final Report on revised technical standards for passporting
ID 24130
ESMA released its Final Report on the revised draft technical standards for passporting under Article 34 of MiFID II. The report focuses on enhancing investor protection and ensuring the uniform application of regulations within the EU’s financial markets. The proposed amendments include targeted changes to the existing RTS and ITS, with the main objective of providing NCAs with more detailed information from **investment firms ...