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|27/03/2014||2014/332||Structured Retail Products- Good practices for product governance arrangements||MiFID - Investor Protection, Innovation and Products||Opinion||PDF
|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.|
|18/12/2014||2014/1378||Opinion- Investment-based crowdfunding||Innovation and Products||Opinion||PDF
|Crowdfunding is a means of raising finance for projects from ‘the crowd’ often by means of an internet-based platform through which project owners ‘pitch’ their idea to potential backers, who are typically not professional investors. It takes many forms, not all of which involve the potential for a financial return. ESMA’s focus is on crowdfunding which involves investment, as distinct from donation, non-monetary reward or loan agreement. Crowdfunding is relatively young and business models are evolving. EU financial services rules were not designed with the industry in mind. Within investment-based crowdfunding a range of different operational structures are used so it is not straightforward to map crowdfunding platforms’ activities to those regulated under EU legislation. Member States and NCAs have been working out how to treat crowdfunding, with some dealing with issues case-by-case, some seeking to clarify how crowdfunding fits into existing rules and others introducing specific requirements.To assist NCAs and market participants, and to promote regulatory and supervisory convergence, ESMA has assessed typical investment-based crowdfunding business models and how they could evolve, risks typically involved for project owners, investors and the platforms themselves and the likely components of an appropriate regulatory regime. ESMA then prepared a detailed analysis of how the typical business models map across to the existing EU legislation, set out in this document.|
|22/04/2015||2015/532||Investment using virtual currency or distributed ledger technology||Innovation and Products||Consultation Paper||PDF
|ESMA has been monitoring and analysing virtual currency investment over the last 6 months, to understand developments in the market, potential benefits or risks for investors, market integrity or financial stability, and to support the functioning of the EU single market. ESMA’s analysis is set out in this paper. ESMA is seeking to share its analysis in order to promote wider understanding of innovative market developments, and invites market participants and other stakeholders to submit feedback and any additional information on the following topics: Virtual currency investment products, i.e. collective investment schemes or derivatives such as options and CFDs that have virtual currencies (VCs) as an underlying or invest in VC related businesses and infrastructure; Virtual currency based assets/securities and asset transfers, i.e. financial assets such as shares, funds, etc. that are exclusively traded using virtual currency distributed ledgers (also known as block chains);and The application of the distributed ledger technology to securities/investments, whether inside or outside a virtual currency environment.|
|25/09/2015||2015/1463||ESMA Consultation Paper on ESEF||Corporate Disclosure, European Single Electronic Format, Transparency||Consultation Paper||PDF
|31/05/2016||2016/732||Guidelines on participant default rules and procedures under CSDR||Guidelines and Technical standards, Post Trading||Consultation Paper||PDF
The European Securities and Markets Authority (ESMA) under Article 41(4) of Regulation (EU) No 909/2014 of the European Parliament and of the Council on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation No 236/2012 (CSDR) may issue guidelines in accordance with Article 16 of Regulation (EU) No 1095/2010 in order to ensure consistent application of Article 41 of CSDR relating to participant default rules and procedures.
Section 2 contains information on the background and mandate, Section 3 contains an analysis of the scope and content of the proposed guidelines, while Section 4 contains the proposed guidelines.
Annex I sets out a summary of the questions contained in this paper and Annex II includes a high level cost-benefit analysis for the guidelines.
ESMA will consider the feedback it will receive to this consultation with a view to finalising the guidelines by Q4 2016.
|02/06/2016||2016/773||Discussion Paper on the Distributed Ledger Technology Applied to Securities Markets||Innovation and Products, Risk Analysis & Economics - Markets Infrastructure Investors||Consultation Paper||PDF
|28/10/2016||2016/1529||Joint ESMA and EBA Guidelines on the assessment of the suitability of members of the management body and key function holders||Guidelines and Technical standards, MiFID - Investor Protection||Consultation Paper||PDF
|12/01/2017||ESMA50-1215332076-23||Opinion on the impact of the exclusion of fund management companies from the scope of the MiFIR intervention powers||Innovation and Products||Opinion||PDF
|14/06/2017||ESMA20-95-590||Annual Report 2016||Board of Supervisors, Corporate Information, Planning reporting budget||Annual Report||PDF
Corrigendum - date on the letter of assurance from the Executive Director on p81 had inadvertently been dated 14 June 2017, when the letter was signed on 2 June 2017. The date has been amended accordingly
|29/09/2017||70-145-105||Draft Guidelines on non-significant benchmarks||Benchmarks, Guidelines and Technical standards||Consultation Paper||PDF
|19/06/2018||ESMA20-95-916||Annual Report 2017||Board of Supervisors, Corporate Information, Planning reporting budget||Annual Report||PDF
|09/03/2020||ESMA80-199-332||ESMA Supervision- Annual Report 2019 and Work Programme 2020||Benchmarks, Credit Rating Agencies, Securities Financing Transactions, Securitisation, Trade Repositories||Annual Report||PDF
|17/03/2020||ESMA70-155-9556||Opinion on CNMV emergency measure under SSR||COVID-19, Market Integrity, Short Selling||Opinion||PDF
|17/03/2020||ESMA70-155-9565||Opinion on CONSOB emergency measure under SSR||COVID-19, Market Integrity, Short Selling||Opinion||PDF
|18/03/2020||ESMA70-155-9581||Opinion on AMF emergency measure under SSR||COVID-19, Market Integrity, Short Selling||Opinion||PDF
|19/03/2020||ESMA70-155-9590||Opinion on FSMA emergency measure under the SSR||COVID-19, Market Integrity, Short Selling||Opinion||PDF
|19/03/2020||ESMA70-155-9587||Opinion on HCMC emergency measure under the SSR||COVID-19, Market Integrity, Short Selling||Opinion||PDF
|24/03/2020||ESMA70-155-9604||Opinion on FMA emergency measure under the SSR||COVID-19, Market Integrity, Short Selling||Opinion||PDF
|27/03/2020||ESMA74-362-47||CP on the TS on reporting data quality data access and registration of TRs under EMIR REFIT||Post Trading, Supervisory convergence, Trade Repositories||Consultation Paper||PDF
|15/04/2020||ESMA70-155-9853||Opinion on HCMC emergency measure under the SSR||COVID-19, Market Integrity, Short Selling||Opinion||PDF