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Date Ref. Title Section Type Download Info Summary Related Documents Translated versions
11/04/2012 JC/2011/96 EBA, ESMA and EIOPA’s Report on the legal, regulatory and supervisory implementation across EU Member States in relation to the Beneficial Owners Customer Due Diligence requirements under the Third Money Laundering Directive [2005/60/EC] Final Report PDF
552.11 KB
11/04/2012 JC/2011/97 EBA, ESMA and EIOPA’s Report on the legal and regulatory provisions and supervisory expectations across EU Member States of Simplified Due Diligence requirements where the customers are credit and financial institutions under the Third Money Laundering Di Final Report PDF
476.47 KB
06/07/2012 2012/387 Final report Guidelines on certain aspects of the MiFID suitability requirements , Final Report PDF
444.15 KB
30/08/2012 2012/537 STATEMENT- Short Selling Regulation Update: Market Maker & Primary Dealer Exemption Notification Procedure , , Statement PDF
77.92 KB
The European Securities and Markets Authority (ESMA) is publishing this notice to alert financial market participants to its upcoming consultation on the market making and authorised primary dealer exemption under the EU’s Short Selling Regulation (SSR) and the procedure to be followed by firms and regulators in dealing with notifications of intention to use the exemption.
13/09/2012 2012/577 ESMA publishes a Q&A on Short-Selling Regulation , Statement PDF
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The European Securities and Markets Authority (ESMA) has published a Q&A on the Implementation of the Regulation on short selling and certain aspects of credit default swaps.The purpose of the Q&A is to promote common supervisory approaches and practices amongst the EU’s national securities markets regulators on the requirements of the Short Selling Regulation once it comes into force on 1 November 2012.  It will also provide clarity on the requirements of the new regime to market participants and investors.Issues addressed by the Q&AThe document provides responses to questions posed by market participants, national securities markets regulators, and the general public in relation to the practical application of the forthcoming Short Selling regime.  It addresses issues related to:•    territorial scope;•    transparency requirements; •    calculation of net short positions;•    uncovered short sales; •    and enforcement regime.Further InformationThe document is likely to be revised and updated before 1 November as new questions are received by ESMA.Technical queries on the application of the new regime should be addressed in writing to shortselling@esma.europa.eu, while further information can be found at http://www.esma.europa.eu/page/Short-selling. Notes for editors1.    Questions & Answers – Implementation of the regulation on short selling and certain aspects of credit default swaps.2.    Regulation on short selling and certain aspects of credit default swaps.3.    ESMA is an independent EU Authority that was established on 1 January 2011 and works closely with the other European Supervisory Authorities responsible for banking (EBA), and insurance and occupational pensions (EIOPA), and the European Systemic Risk Board (ESRB).4.    ESMA’s mission is to enhance the protection of investors and promote stable and well-functioning financial markets in the European Union (EU).  As an independent institution, ESMA achieves this aim by building a single rule book for EU financial markets and ensuring its consistent application across the EU.  ESMA contributes to the regulation of financial services firms with a pan-European reach, either through direct supervision or through the active co-ordination of national supervisory activity.Further information:David CliffeSenior Communications OfficerTel:   +33 (0)1 58 36 43 24Mob: +33 6 42 48 29 06Email: david.cliffe@esma.europa.eu
07/12/2012 JC/2012/86 ESA report on the application of AML/CTF obligations to, and the AML/CTF supervision of e-money issuers, agents and distributors in Europe. Final Report PDF
476.42 KB
12/04/2013 JC 2013-010 Joint Committee report on risks and vulnerabilities in the EU financial system, March 2013 Final Report PDF
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The Joint Committee of the European Supervisory Authorities (Joint Committee) has published today its first Report on Risks and Vulnerabilities in the European Union’s (EU) Financial System. The European financial system faces a range of risks and challenges: 1. Risks from the weak macroeconomic outlook for the financial health of real-economy and sovereign borrowers, and consequently for financial institutions’ asset quality and profitability; 2. Risks of a prolonged period of low interest rates impacting insurers and pension funds, increasing search for yield behaviour and facilitating widespread forbearance by banks; 3. Risks of further fragmentation of the single market in financial services due to evidences of national retrenchment, home bias, reduced cross-border activity and clustering of markets; 4. Risks from increased reliance on collateral in financial transactions; 5. Risks to confidence in financial institutions balance sheet valuations and risk disclosures; and 6. Risks of loss of confidence in financial market benchmarks. These risks, although presented individually in this report, are highly interlinked and require a concerted response by policy makers both at the political level and from the European System of Financial Supervision including the European Supervisory Authorities (ESAs). Suggested policy actions to restore the confidence in the financial system are presented at the end of some described risks. The challenge facing policy makers is nothing less than to restore the confidence and trust in the financial system that has been eroded during recent years’ financial crises.
30/04/2013 2013/542 Emergency measure by the Greek HCMC under Section 1 of Chapter V of Regulation No 236/2012 on short selling and certain aspects of credit default swaps , Opinion PDF
96.41 KB
05/09/2013 JC 2013/050 Joint Committee report on risks and vulnerabilities in the EU financial system, August 2013 Final Report PDF
793.91 KB
08/10/2013 JC 2013/055 Identification of Financial Conglomerates Final Report PDF
268.59 KB
The Joint Committee publishes the 2013 List of Identified Financial Conglomerates. The latest version of the list shows 75 financial conglomerates with the head of group in an EU/EEA country, one with the head of group in Australia, two with the head of the group in Switzerland, and two with the head of group in the United States.
08/10/2013 JC 2013/056 Explanation of Changes in Compilation of Data Final Report PDF
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The Joint Committee publishes the 2013 List of Identified Financial Conglomerates. The latest version of the list shows 75 financial conglomerates with the head of group in an EU/EEA country, one with the head of group in Australia, two with the head of the group in Switzerland, and two with the head of group in the United States.
08/11/2013 JC-2013-72 Preliminary report on anti-money laundering and counter financing of terrorism Risk Based Supervision Final Report PDF
636.21 KB
28/11/2013 JC 2013/77 Joint Position of the European Supervisory Authorities on Manufacturers’ Product Oversight & Governance Processes Final Report PDF
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The Joint Committee of the three European Supervisory Authorities published today eight principles applicable to the oversight and governance processes of financial products. These principles cover in particular the responsibilities of manufacturers and producers in setting up processes, functions and strategies for designing and marketing financial products, as well as at reviewing the products’ life cycle. The Joint Position of the European Supervisory Authorities (ESAs) highlights in particular that the design of financial products and services poses risks to consumers when the target market is not correctly identified. These risks can also arise when the objectives and characteristics of the target market are not duly taken into account in the marketing of products to consumers. These issues have previously arisen at EU level across the three sectors of banking, insurance and securities.The eight high level principles developed by the three ESAs in their Joint Position stress the importance of the controls that manufacturers should put in place before launching their products, thus discouraging products and services that may cause consumer detriment from entering the market and thus ultimately enhancing consumers’ confidence in financial markets.The Joint Position is not directly addressed to market participants and competent authorities but it will provide a high-level, consistent basis for the development of more detailed principles addressed to manufactures by each ESA in the respective sectors. The Joint position is therefore without prejudice to any work that is being developed by each ESA, including in the context of the review of sectoral Directives.
18/12/2013 ESA/2013/035 Joint Opinion-Review on the functioning of the European Systemic Risk Board (ESRB) Opinion PDF
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Joint Opinion-Review on the functioning of the European Systemic Risk Board (ESRB)
06/02/2014 JC 2014/004 Mechanistic references to credit ratings in the ESAs’ guidelines and recommendations Final Report PDF
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The Joint Committee of the three European Supervisory Authorities (EBA, ESMA and EIOPA - ESAs) published today its final Report on mechanistic references to credit ratings in the ESAs’ guidelines and recommendations and on the definition of “sole and mechanistic reliance” on such ratings. In accordance with the Credit Rating Agencies Regulation (CRA 3), the EBA, ESMA and EIOPA have reviewed all their existing guidelines and recommendations in order to identify, and where appropriate remove, references to external credit ratings that could trigger sole or mechanistic reliance on such ratings. This final report includes the amendments to ESMA’s Guidelines on Money Market Funds (MMF) according to the definition of ‘sole and mechanistic reliance’ contained therein. This common definition aims at harmonising the different interpretations of ‘sole and mechanistic reliance’ in the ESAs regulations and guidelines. This definition, to which the ESAs intend to refer to in all their future guidelines, recommendations and draft technical standards, was developed taking into account all the comments received during the public consultation that ended on 5 December 2013. Legal background Regulation (EU) No 462/2013 of 21 may 2013 (CRA 3) mandates the EBA, EIOPA and ESMA to review and, where appropriate, remove all references to credit ratings in existing guidelines and recommendations that have the potential to trigger sole or mechanistic reliance. This article puts forward the first of the Principles for reducing reliance on CRA Ratings issued by the Financial Stability Board on 27 October 2010.
07/02/2014 2014/146 MiFID practices for firms selling complex products , Opinion PDF
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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.
02/04/2014 JC/2014/18 Report on risks and vulnerabilities in the EU financial system March 2014 Final Report PDF
1.28 MB
31/07/2014 JC/2014/062 Placement of financial instruments with depositors, retail investors and policy holders ('Self placement') Final Report PDF
383.93 KB
Reminder to credit institutions and insurance undertakings about applicable regulatory requirements Executive summary As part of their respective mandates to protect investors, depositors and policy holders, the three European Supervisory Authorities, the EBA, ESMA and EIOPA are concerned about the practices used by some financial institutions to comply with enhanced prudential requirements under the CRD/R IV, the pending BRRD, and Solvency 2, as well as the ongoing EBA stress test and the ECB’s comprehensive assessment. These practices include financial institutions selling to their own client base financial instruments that they themselves have issued and that are eligible to comply with the above requirements. This practice may breach a number of rules governing the conduct of these institutions. However, the ‘loss bearing’ features of many of these products mean that consumers are exposed to significant risks that do not exist for other financial instruments. For example, investors are more likely to be subject to bail-in; and the absence of harmonised structures, trigger points and loss absorption makes it difficult for investors to understand and compare the products. Each product needs to be assessed as a unique offering, which may be particularly challenging for retail investors. The three authorities, within their remits, are reminding financial institutions that capitalisation pressures should not affect their ability to comply with existing and future requirements applicable in the European Union for the provision of services to consumers, including investors, depositors and policy holders. It is expected that due to regulatory and market developments, the risks of consumer detriment described here will further increase; this reminder is aimed at preventing this.
22/09/2014 JC/2014/063 Joint Committee Report on Risks and Vulnerabilities in the EU Financial System , Final Report PDF
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The Joint Committee of the European Supervisory Authorities (ESAs) published today its bi-annual report on risks and vulnerabilities in the European Union's (EU) financial system. The report identifies a number of risks to financial stability in the EU, including prolonged weak economic growth in an environment characterised by high indebtedness, intensified search for yield in a protracted low interest rate environment, and uncertainties in global emerging market economies. The report also highlights risks related to conduct of business and Information Technologies (IT).

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