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Date Ref. Title Section Type Download Info Summary Related Documents Translated versions
10/03/2011 2011/11 Public statement of consultation practices Statement PDF
102.44 KB
16/11/2011 2011/379 Final report- ESMA's technical advice to the European Commission on possible implementing measures of the Alternative Investment Fund Managers Directive Technical Advice PDF
3.51 MB
09/11/2012 2012/279 ESMA appoints new chairs to Standing Committees Statement PDF
87.88 KB
30/09/2013 ESMA/2013/1363 Statement by Steven Maijoor, Chair European Securities and Markets Authority, ECON Committee, European Parliament 30 September 2013 Statement PDF
113.71 KB
Annex to the Statement by Steven Maijoor, Chair of ESMA, to the ECON hearing, 30 September 2013 ESMA/2013/1350
30/09/2013 ESMA/2013/1350 Annex to the Statement by Steven Maijoor, Chair of ESMA, to the ECON hearing, 30 September 2013 Statement PDF
338.74 KB

Statement by Steven Maijoor, Chair European Securities and Markets Authority, ECON Committee, European Parliament 30 September 2013 ESMA/2013/1363

27/03/2014 2014/312 Technical advice to the European Commission on the information that competent authorities should provide to ESMA pursuant to Article 67(3) of the AIFMD Technical Advice PDF
330.79 KB
Reasons for publication ESMA is issuing this technical advice in response to the mandate received from the European Commission on 20 December 2013 for advice on the possible content of the delegated act required by Article 67(5) of the AIFMD, concerning the information that EU competent authorities have to provide quarterly to ESMA pursuant to Article 67(3) of the Directive. This information is needed in order to allow ESMA to produce the opinion and the advice required in Article 67(1) of the AIFMD, in relation to the possible extension of the AIFMD passport to non-EU AIFs and non-EU AIFMs. Contents Section II describes the background of the proposal. Section III specifies the timing for the provision of the information to ESMA and lists the information that the competent authorities should provide quarterly to ESMA. The list of information is divided into three parts: the first refers to the information about the functioning of the passport for EU AIFMs; the second deals with the functioning of the national private placement regime for non-EU AIFs and non-EU AIFMs; and the third refers to the issues arising from the functioning of both systems. Finally, Section IV reproduces the mandate for advice issued by the European Commission. Next steps ESMA will cooperate closely with the European Commission in order to facilitate an expeditious adoption of the delegated act required by Article 67(5) of the AIFMD.
23/09/2014 2014/1164 Statement by Steven Maijoor, Chair, European Securities and Markets Authority at the ECON Committee, European Parliament 23 September 2014 Statement PDF
109.53 KB
Dear Members of the European Parliament, Ladies and gentlemen, First of all, I would like to congratulate you on your election or re-election as a Member of the European Parliament and as a member of this important committee. Call it a “Single Capital Market” or “Capital Market Union”, the financial regulatory reform in the European Union (EU) in the last five years has made solid progress and is a decisive step towards the aim of completing the single market in financial services. This is not only a necessity to tackle failures exposed by the financial crisis, it is also a crucial part of realising the overriding objective of securing economic recovery in the EU. However, it will only reach its full potential if the single rule book is applied consistently and supervised adequately so that all stakeholders can benefit from it in daily practice. ESMA plays a key role in achieving this objective, by enhancing investor protection and by promoting stable and orderly financial markets in the EU. Since its inception three and a half years ago, ESMA has contributed to the creation of an EU single rulebook by developing technical standards and guidelines, and by assisting the European Institutions, and the European Commission in particular, in providing technical advice on such areas as: over-the-counter (OTC) derivatives, hedge funds and private equity, short selling, high frequency trading, Exchange-Traded Funds (ETFs), investment advice and financial information. In the last 12 months, ESMA finalised 22 technical standards and pieces of technical advice to the European Commission, as well as seven sets of guidelines, in order to complete the legal framework in areas such as Credit Rating Agencies, prospectuses, market infrastructures, European Social Entrepreneurship Funds and European Venture Capital Funds. We are currently translating the recently agreed MiFID II/MiFIR requirements into practically applicable rules. I will not run through all the work we have done on the single rulebook in that time as you can find an overview and some statistics in the Annex to my Statement which was distributed to you. I would like to stress that throughout the entire policy process we engage as much as possible with all relevant stakeholders – through hearings, direct meetings and consultations. We have – and will continue – to interact with many stakeholder associations representing consumers, investors and market participants - and solicit the views of ESMA’s Securities and Markets Stakeholders Group (SMSG). To mention two examples, right now we are assessing the almost 800 responses we have received to our MiFID II discussion and consultation papers and ESMA has received more than 1500 questions on the implementation of the European Market Infrastructure Regulation (EMIR). ESMA has successfully developed a regime of direct supervision at EU level. We supervise 23 credit rating agencies by conducting thematic investigations, on-site visits, analysing the information CRAs provide to the public and by monitoring the implementation of remedial action plans. In June this year, ESMA concluded its first enforcement action and issued a public notice censuring Standard & Poor’s Credit Market Services France SAS and Standard & Poor’s Credit Market Services Europe Limited (S&P) for failing to meet certain organisational requirements. EMIR brings more transparency to derivatives markets by introducing mandatory reporting to trade repositories (TRs). Since November 2013, six repositories have been registered and are now supervised by ESMA. Since reporting under EMIR went live, derivatives trade data has flowed into the repositories: as of 30 June 2014, more than 1 billion new trades have been reported to the TRs. Regulators now have access, or are in the process of establishing access, to derivatives data which should help in providing a clearer picture on the risks associated with those markets. On identifying risks to investor protection and stability, ESMA has substantially improved its data and intelligence gathering capabilities. Risks in securities markets are, for example regularly, identified and reported on in ESMA’s Trend, Risk and Vulnerabilities Report. Concerning the convergence of supervisory practices we have employed a range of instruments, including Q&As, opinions and peer reviews. Regarding peer reviews, we have strengthened our methodology, including the more frequent use of on-site visits. More generally, with the reform of financial markets moving from legislation to implementation, supervisory convergence will become a higher priority in ESMA’s activities and we will increase our resources allocated to this area. That brings me to the last topic I would like to raise, which I also brought to this Committee’s attention last year, the need for a stable budget. Today, our funding comes from a combination of the EU budget, levies on the financial market entities that we supervise directly, and the Member States’ national competent authorities. We are concerned that an increasing budget contribution from national competent authorities might pose undue difficulties to their functioning. This would run counter to the reinforcement of securities markets regulation and supervision at both EU and national level as envisaged in the regulatory reform programme. ESMA’s funding should guarantee its independence and not create potential undue influence. Therefore, we believe that the co-legislators should consider increasing the funding ESMA receives from financial market entities which require ESMA’s intervention and to increase the Union’s share in ESMA’s budget through an independent budget line directly adopted by the co-legislators. Thank you for your attention.
28/11/2014 2014/1417 ESMA's technical advice to the European Commission on delegated acts required by the UCITS V Directive Technical Advice PDF
469.49 KB
19/12/2014 2014/1569 Technical Advice to the Commission on MiFID II and MiFIR , Technical Advice PDF
2.8 MB
Reasons for publication The European Securities and Markets Authority (ESMA) received a formal request (mandate) from the European Commission (Commission) on 23 April 2014 to provide technical advice to assist the Commission on the possible content of the delegated acts required by several provisions of Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). The mandate focuses on technical issues which follow from MiFID II and MiFIR and is available on the European Commission website (here). ESMA was required to provide technical advice by no later than six months after the entry into force of MiFID II and MiFIR (2 July 2014). Contents This final report follows the same structure as the Consultation Paper  (CP) published by ESMA on 22 May 2014 which is: (1) Introduction, (2) Investor protection, (3) Transparency, (4) Data publication, (5) Micro-structural issues, (6) Requirements applying on and to trading venues, (7) Commodity derivatives and (8) Portfolio compression. This paper also contains summaries of responses to the CP received by ESMA. The rationale of those items covered already in the CP for which no relevant changes have been introduced, is not developed again in this Final Report. ESMA recommends, therefore, to read this report together with the CP published on 22 May 2014 to have a complete vision of the rationale for ESMA’s technical advice. Next steps Delegated acts should be adopted by the Commission so that they enter into application by 30 months following the entry into force of the Directive and Regulation, taking into account the right of the European Parliament and Council to object to a delegated act within 3 months (which can be extended by a further 3 months).
16/02/2015 2015/227 Final Report- ESMA’s technical advice to the European Commission on the delegated acts of the Regulations on European Social Entrepreneurship Funds and European Venture Capital Funds Technical Advice PDF
609.09 KB
30/07/2015 2015/1236 ESMA's advice to the European Parliament, the Council and the Commission on the application of the AIFMD passport to non-EU AIFMs and AIFs Technical Advice PDF
1.36 MB
Executive summary Reasons for publication In accordance with Articles 36 and 42 of the Directive 2011/61/EU on Alternative Investment Fund Managers (AIFMD), non-EU alternative investment fund managers (AIFMs) and non-EU alternative investment funds (AIFs) managed by EU AIFMs are subject to the national private placement regime (NPPR) of each of the Member States where the AIFs are marketed or managed. However, the AIFMD makes provision for the passport, which is currently reserved to EU AIFMs and AIFs, to be potentially extended in future. Article 67(1) of the AIFMD establishes that, by 22 July 2015, ESMA shall issue to the European Parliament, the Council and the Commission advice on the application of the passport to non-EU AIFMs and AIFs in accordance with the rules set out in Article 35 and 37 to 41 of the AIFMD. This document sets out ESMA’s advice on the application of the passport to six non-EU countries: Guernsey, Hong Kong, Jersey, Switzerland, Singapore and the United States. Contents Section 1 of the advice sets out the background to ESMA’s work, while the detailed assessment of each of the aforementioned non-EU countries is contained in section 2. Annexes 1 to 7 contain a summary of the feedback to the call for evidence that ESMA launched in November 2014. Annex 8 gives a detailed breakdown by non-EU country of the number of non-EU AIFs and non-EU AIFMs active in Member States in accordance with Articles 36 and 42 of the AIFMD. Next Steps ESMA will continue to work on its assessment of other non-EU countries not covered in this advice with a view to delivering further submissions to the European Parliament, the Council and the Commission in the coming months. For those non-EU jurisdictions with which there are currently no supervisory cooperation arrangements in place for the purposes of the AIFMD, ESMA will continue its efforts to agree a MoU with the authorities concerned.
02/02/2016 2016/165 Public Statement- Supervisory work on potential closet index tracking Statement PDF
258.17 KB

The European Securities and Markets Authority (ESMA) is issuing this statement to inform stakeholders and especially investors about the potential for some European collective investment funds to be ‘closet index trackers’, and to give details on the work that ESMA has been doing in this context.

Introduction

  1. ESMA’s attention was drawn to an alleged practice in the European collective investment management industry whereby asset managers claim, according to their fund rules and investor information documentation, to manage their funds in an active manner while the funds are, in fact, staying very close to a benchmark and therefore implementing an investment strategy which requires less input from the investment manager. At the same time, it is alleged that these funds charge management fees in line with those of funds that are considered to be actively managed[1]. This practice is commonly referred to as ‘closet indexing’ or ‘index hugging’.
  2. In many EU Member States, NCAs have launched or are in the process of launching specific investigations, in addition to their regular monitoring and supervisory functions, to determine the potential extent of closet indexing in their jurisdictions, with a focus on equity funds at this stage. At the same time, the issue has been the subject of considerable attention by investor protection groups and the media throughout the European Union.

Reasons for issuing this statement

  1. The issues around ‘closet indexing’ form part of a broader issue on the effectiveness of investor disclosure and the legitimate expectations of investors in respect of the service provided by some asset managers. Nonetheless, the potential practice of closet indexing in Europe raises questions that merit closer analysis. The analysis carried out by ESMA (see paragraphs 9 to 16 for more details) indicates that there might be a small, but not insignificant number of funds in the EU equity fund sector that may be closet index trackers. If the existence of this practice were to be confirmed by further supervisory scrutiny carried out at national level, this could mean that:
  1. investors could be making investment decisions based on an expectation that they will be provided with a more active fund management service than they receive in practice and, therefore, may be paying higher management fees than that usually envisaged for a passive/not significantly active management service;
  2. investors may be exposed to a different risk/return profile than they expect; and
  3. some asset managers may not provide clear descriptions of how funds are managed in key disclosure documents such as the fund’s Prospectus and Key Investor Information Document (KIID).
  1. ESMA considers it important that fund managers take their commitments in disclosure documents seriously. Managers should expect supervisory consequences where evidence for incorrect disclosures is proven.
 

[1] ESMA recognises that management fees may depend on a number of factors.

02/06/2016 2016/902 MiFID practices for firms selling financial instruments subject to the BRRD resolution regime Statement PDF
259.47 KB
20/06/2016 2016/940 Statement by Steven Maijoor at ECON MiFID II/MiFIR Scrutiny Session, 21 June 2016 , Statement PDF
235.65 KB
12/09/2016 2016/1140 Final advice on AIFMD passport Technical Advice PDF
621.95 KB

This version of the advice includes the following clarifications with respect to the assessment of the Isle of Man:

  • the Isle of Man underwent an assessment by the International Monetary Fund (IMF) in 2003 and 2009 as part of the Financial Sector Assessment Program (FSAP); and
  • the self-assessment carried out by the Isle of Man Financial Services Authority in 2013 was an assisted self-assessment.
30/09/2016 2016/1408 ESMA appoints new chairs to Standing Committees , , , Statement PDF
141.3 KB

The Board of Supervisors of the European Securities and Markets Authority (ESMA) has appointed the following individuals to serve as chairs of its standing committees:

  • Hannelore Lausch, Executive Director of the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), Germany, will chair the Market Data Standing Committee;
  • Cyril Roux, Deputy Governor of the Central Bank of Ireland (CBI, will chair the Investment Management Standing Committee; and
  • Merel van Vroonhoven, Chair of the Autoriteit Financiële Markten (AFM), Netherlands, will chair the Investor Protection and Intermediaries Standing Committee.

The standing committees are expert groups drawn from ESMA staff and the national competent authorities for securities markets regulation in the Member States, and are responsible for the development of policy in their respective areas.  The appointments are for a period of two years and commence with immediate effect.

28/10/2016 ESMA/2016/1528 European common enforcement priorities for 2016 financial statements , , Statement PDF
317.18 KB
10/11/2016 2016-1563 Issues for consideration in implementing IFRS 9: Financial Instruments , , Statement PDF
256.22 KB
28/06/2017 ESMA35-36-885 Product Intervention- General Statement , Statement PDF
123.04 KB

This statement provides an update on the European Securities and Markets Authority’s (ESMA) work in relation to the sale of contracts for differences (CFDs), binary options and other speculative products to retail investors.

 

ESMA has been concerned about the provision of speculative products such as CFDs, rolling spot forex and binary options to retail investors for a considerable period of time and has conducted ongoing monitoring and supervisory convergence work in this area. In this context, ESMA has previously published a number of Q&As on CFDs and other speculative products[1] to foster supervisory convergence, having established a CFD Task Force in July 2015, and also issued a further investor warning on the sale of CFDs, binary options and other speculative products in July 2016[2].

 

However, ESMA remains concerned that these supervisory convergence tools may not be sufficiently effective to ensure that the risks to consumer protection are sufficiently controlled or reduced. ESMA is therefore discussing the possible use of its product intervention powers under Article 40 of MiFIR to address investor protection risks in relation to CFDs, rolling spot forex and binary options.

 

ESMA is in the process of discussing the possible use of its product intervention powers under Article 40 of MiFIR, the possible content of any such measures, and how they could be applied. However, ESMA can confirm that the measures being discussed for (i) CFDs and rolling spot forex and (ii) binary options include proposals that take into account a number of measures that have been adopted or publicly consulted on by EU National Competent Authorities. These measures include leverage limits, guaranteed limits on client losses, and / or restrictions on the marketing and distribution of these products.

 

In accordance with Article 40 of MiFIR, any intervention measures must be approved by the ESMA Board of Supervisors and can only come into effect from 3 January 2018 at the earliest[3].

06/07/2017 ESMA71-99-522 ESMA appoints new member to its Management Board , Statement PDF
144.98 KB

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