Investor protection and Intermediaries
The Markets in Financial Instruments Directive (MiFID) applies to provision of investment services and activities by investment firms and credit institutions. ESMA’s role within the current MiFID framework has included delivering advice to the European Commission on the review of MiFID. Once the revised Directive and the new Regulation enter into force, ESMA will also have an important role to play in relation to developing and providing technical advice to the European Commission on implementing measures, and in preparing technical standards and guidelines relating to the provisions of MiFID.
The aim of the Packaged Retail Investment Products (PRIPs) work-stream is to put in place a consistent regime for product disclosures and selling practices with respect to the main categories of retail investment products (harmonised and non-harmonised funds, retail structured securities, structured term deposits and insurance-based investments). The European Commission identified two benchmarks for the PRIPs framework: for disclosures, the KIID for UCITS; for selling practices, the Markets in Financial Instruments Directive (MiFID). ESMA’s predecessor, CESR, contributed to work done by the 3 Level 3 Committees (CESR, CEBS and CEIOPS) in this area.
ESMA is generally responsible for promoting convergent approaches to investor protection regulation in the EU. ESMA seeks to achieve this by using a number of tools, such as guidelines under Article 16 of the ESMA Regulation, and opinions and Q&As under Article 29 of the ESMA Regulation.
According to its obligations under the Omnibus Directive, ESMA makes available the following lists: