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Date Ref. Title Section Type Download Info Summary Related Documents Translated versions
27/03/2014 2014/332 Structured Retail Products- Good practices for product governance arrangements , Opinion PDF
203.1 KB
Legal basis 1.    Regulation (EU) No 1095/2010 (ESMA Regulation)  sets out the European Securities and Markets Authority’s (ESMA) scope of action, tasks and powers which include “enhancing customer protection”, and “foster[ing] investor protection”.  2.    In order to continue delivering on this investor protection statutory objective, ESMA is issuing this opinion on certain aspects linked to the manufacturing and distribution of structured retail products (SRP). This opinion takes into account relevant work done in this field both at European and interna-tional level.  3.    This opinion is without prejudice to the requirements for the provision of investment services and activities established in the Markets in Financial Instruments Directive (MiFID)  and its implementing measures (notably, Directive 2006/73/EC), the regulatory developments arising from the MiFID review or existing product rules that may apply to SRPs.  4.    ESMA’s competence to deliver an opinion is based on Article 29(1) (a) of the ESMA Regulation. In accordance with Article 44(1) of the ESMA Regulation, the Board of Supervisors has adopted this opinion. Background 5.    In its July 2013 report on ‘Retailisation in the EU’ , ESMA highlighted that, from a consumer protec-tion perspective, retail investors may face difficulties in understanding the drivers of risks and returns of structured products. If retail investors do not properly understand the risk and reward profile of structured products, and if the products are not properly assessed against the risk appetite of retail investors, retail investors might be exposed to unexpected losses and this might lead to complaints, reputational risks for manufacturers and distributors, and a loss of confidence in the regulatory framework and, more broadly, in financial markets. 6.    In 2013, ESMA mapped the measures adopted in the EU Member States in relation to complex products in order to identify issues and to better understand the rationale behind national initiatives (by looking at similarities and differences in the various approaches, and reviewing how complexity has been treated in the different EU Members States). 7.    As a result, ESMA has developed a broad set of non-exhaustive examples of good practices, attached as Annex 1 hereto, illustrating arrangements that firms - taking into account the nature, scale and complexity of their business - could put in place to improve their ability to deliver on investor protection regarding, in particular, (i) the complexity of the SRPs they manufacture or distribute, (ii) the nature and range of the investment services and activities undertaken in the course of that business, and (iii) the type of investors they target. These good practices should also be a helpful tool for competent authorities in carrying out their supervisory action. Opinion 8.    ESMA considers that sound product governance arrangements are fundamental for investor protec-tion purposes, and can reduce the need for product intervention actions by competent authorities. 9.    ESMA considers that, when supervising firms manufacturing or distributing an SRP, competent authorities should promote, in their supervisory approaches, the examples of good practices for firms set out in Annex 1 hereto. 10.    Although the good practices set out in Annex 1 hereto focus on structured products sold to retail investors, ESMA considers that they may also be a relevant reference for other types of financial in-struments (such as asset-backed securities, or contingent convertible bonds), as well as when financial instruments are being sold to professional clients. 11.    The exposure to risk is an intrinsic feature of investment products. The good practices set out in Annex 1 refer to product governance arrangements and do not (and cannot) aim at removing investment risk from products.
06/02/2020 ESMA22-105-1052 Strategy on Sustainable Finance Report PDF
161.97 KB
09/01/2020 ESMA22-106-1942 Strategic Orientation 2020-22 , Report PDF
325.47 KB
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19/07/2021 ESMA35-43-2751 Sanctions and measures imposed under MiFID II in 2020 Report PDF
383.39 KB
13/07/2020 ESMA35-43-2427 Sanctions and measures imposed under MiFID II in 2019 Report PDF
563.38 KB
27/01/2021 ESMA35-43-2507 Report to the EU institutions Article 52 MiFIR Report PDF
354.1 KB
18/12/2019 ESMA30-22-762 Report on undue short-term pressure on corporations from the financial sector Report PDF
2.11 MB
17/07/2019 ESMA35-36-1711 Report on sanctions and measures imposed under MiFID II in 2018 Report PDF
296.09 KB
01/06/2018 ESMA50-162-215 Product Intervention Analysis CFDs , Report PDF
1.26 MB
01/06/2018 ESMA50-162-214 Product Intervention Analysis Binary Options , Report PDF
776.15 KB
18/11/2021 ESMA70-445-7 Preliminary Report on Emission Allowances , Report PDF
1005.62 KB
13/07/2017 ESMA35-43-762 Opinion to support supervisory convergence in the area of investment firms in the context of the United Kingdom withdrawing from the European Union , , Opinion PDF
236.23 KB
02/05/2022 ESMA70-449-497 Opinion RTS liquidity contracts for SME Growth Market issuers , , , Opinion PDF
849.59 KB
19/03/2020 ESMA70-155-9587 Opinion on HCMC emergency measure under the SSR , , Opinion PDF
260.22 KB
15/04/2020 ESMA70-155-9853 Opinion on HCMC emergency measure under the SSR , , Opinion PDF
308.38 KB
19/03/2020 ESMA70-155-9590 Opinion on FSMA emergency measure under the SSR , , Opinion PDF
260.27 KB
15/04/2020 ESMA70-155-9833 Opinion on FSMA emergency measure under the SSR , , Opinion PDF
306.36 KB
24/03/2020 ESMA70-155-9604 Opinion on FMA emergency measure under the SSR , , Opinion PDF
265.61 KB
15/04/2020 ESMA70-155-9848 Opinion on FMA emergency measure under the SSR , , Opinion PDF
432.15 KB
17/03/2020 ESMA70-155-9565 Opinion on CONSOB emergency measure under SSR , , Opinion PDF
346.47 KB

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