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Date Ref. Title Section Type Download Info Summary Related Documents Translated versions
09/03/2016 ESAs/2016/21 RTS on Risk Mitigation LegisWrite Joint Committee Final Report PDF
419.38 KB
22/12/2015 2015/1861 Final report- Guidelines on cross-selling practices MiFID - Investor Protection Final Report PDF
389.42 KB
17/12/2015 2015/1886 Final report on guidelines for the assessment of knowledge and competence MiFID - Investor Protection Final Report PDF
422.68 KB

Reasons for publication

1.            Article 25(1) of Directive 2014/65/EU (MiFID II) states that Member States shall require investment firms to ensure and demonstrate to competent authorities on request that natural persons giving investment advice or providing information about financial instruments, investment services or ancillary services to clients on behalf of the investment firm possess the necessary knowledge and competence to fulfil their obligations under Article 24 and Article 25 .

2.            The European Securities and Markets Authority is required by Article 25(9) of MiFID II to develop – by 3 January 2016 - guidelines specifying criteria for the assessment of knowledge and competence of investment firms’ personnel. The guidelines will come into effect on 3 January 2017.

3.            In accordance with Article 16(2) of the ESMA Regulation, a consultation was launched on 23 April 2015. The Consultation Paper (CP) set out draft ESMA guidelines for the assessment of knowledge and competence of individuals in investment firms providing investment advice or information about financial instruments, investment services or ancillary services to clients on behalf of the investment firm. The consultation period closed on 10 July 2015.

4.            ESMA received 80 responses. The answers received on the CP are available on ESMA’s website unless respondents requested otherwise.

5.            As provided by Article 16 of the ESMA Regulation, ESMA also sought the advice of the Securities and Markets Stakeholder Group’s (SMSG).

6.            This paper contains summaries of responses received and feedback statements provided by ESMA. ESMA recommends that this report should be read together with the CP published on 23 April 2015 to have a complete understanding of the rationale for the guidelines. The final guidelines presented in Annex VI take into account the comments and suggestions raised by respondents.

Contents

7.            Section II briefly summarises the feedback to the CP and the main responses from ESMA.

8.            Section III contains the Annexes: Annex I provides the Summary of questions, Annex II contains the legislative mandate, Annex III reports the cost-benefit analysis, Annex IV reports the Opinion of the Securities and Markets Stakeholder Group, Annex V details the feedback on the CP, Annex VI sets out the final text of the guidelines and Annex VII describes some illustrative examples of the application of certain aspects of the guidelines.

Next Steps

9.            The final guidelines in Annex VI will be translated into the official EU languages and published on the ESMA website. The publication of the translations will trigger a two-month period during which National Competent Authorities (NCAs) must notify ESMA whether they comply or intend to comply with the guidelines.
14/12/2015 EBA/Op/2015/20 Report on investment firms Joint Committee Final Report PDF
1.2 MB
11/12/2015 2015/1858 Final Report- Draft ITS under MiFID II MiFID - Secondary Markets Final Report PDF
972.8 KB
30/11/2015 2015/1783 Final Report on complex debt instruments and structured deposits MiFID - Investor Protection Final Report PDF
409.89 KB
28/09/2015 2015-ESMA-1464 Annex II Annex II- CBA- draft RTS and ITS on MiFID II and MiFIR MiFID - Secondary Markets Final Report PDF
5.07 MB
09/09/2015 JC/2015/053 Joint Committee Report on Risks and Vulnerabilities in the EU's financial markets- August 2015 Joint Committee Final Report PDF
613.31 KB
12/05/2015 JC/2015/022 Joint Committee Report on Securitisation Joint Committee Final Report PDF
1.15 MB		 The Joint Committee of the three European Supervisory Authorities (ESAs) has published a report detailing its findings and recommendations regarding the disclosure requirements and obligations relating to due diligence, supervisory reporting and retention rules in existing EU law on Structured Finance Instruments (SFIs). In this Report, the Joint Committee is making a series of recommendations which should be considered in light of further work on the transparency requirements of SFIs, and the European Commission public consultation on securitisation. The Report states that these recommendations should not be introduced in isolation and should take into account the already existing requirements for disclosure, due diligence and reporting for comparable instruments.
05/05/2015 JC/2015/007 Joint Committee Report on Risks and Vulnerabilities in the EU Financial System Risk Analysis & Economics - Markets Infrastructure Investors, Joint Committee Final Report PDF
692.05 KB		 The Joint Committee of the European Supervisory Authorities (ESAs) published its fifth Report on Risks and Vulnerabilities in the EU Financial System. Overall, the report found that in the past six months, risks affecting the EU financial system have not changed in substance, but have further intensified. The EU’s economic performance improved slightly in early 2015, however the financial sector in general continues to be affected by a combination of factors such as low investment demand, economic uncertainty in the Eurozone and its neighbouring countries, a global economic slow-down and a low-interest rate environment. The main risks affecting the financial system remain broadly unchanged from those identified in the report’s previous edition, but have become more entrenched. The major risks include: • Low growth, low inflation, volatile asset prices and their consequences for financial entities; • Search for yield behaviour exacerbated by potential rebounds; • Deterioration in the conduct of business; and • Increased concern about IT risks and cyber-attacks.
25/02/2015 2015/494 Best Execution under MiFID MiFID - Investor Protection, Supervisory convergence Final Report PDF
761.62 KB		 The European Securities and Markets Authority (ESMA) has conducted a peer review on how national regulators (national competent authorities or NCAs) supervise and enforce the MiFID provisions relating to investment firms’ obligation to provide best execution, or obtain the best possible result, for their clients when executing their orders. ESMA found that the level of implementation of best execution provisions, as well as the level of convergence of supervisory practices by NCAs, is relatively low. In order to address this situation a number of improvements were identified, including: • prioritisation of best execution as a key conduct of business supervisory issue; • the allocation of sufficient resources to best execution supervision; and • a more proactive supervisory approach to monitoring compliance with best execution requirements, both desk-based and onsite inspections. The review was conducted on the basis of information provided by 29 NCAs and complemented by on-site visits to the NCAs of France, Liechtenstein, Luxembourg, Malta, Poland and Spain.
22/09/2014 JC/2014/063 Joint Committee Report on Risks and Vulnerabilities in the EU Financial System Risk Analysis & Economics - Markets Infrastructure Investors, Joint Committee Final Report PDF
507.84 KB		 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).
31/07/2014 JC/2014/062 Placement of financial instruments with depositors, retail investors and policy holders ('Self placement') Joint Committee 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.
02/04/2014 JC/2014/18 Report on risks and vulnerabilities in the EU financial system March 2014 Joint Committee Final Report PDF
1.28 MB
06/02/2014 JC 2014/004 Mechanistic references to credit ratings in the ESAs’ guidelines and recommendations Joint Committee Final Report PDF
519.98 KB		 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.
28/11/2013 JC 2013/77 Joint Position of the European Supervisory Authorities on Manufacturers’ Product Oversight & Governance Processes Joint Committee Final Report PDF
210.59 KB		 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.
08/11/2013 JC-2013-72 Preliminary report on anti-money laundering and counter financing of terrorism Risk Based Supervision Joint Committee Final Report PDF
636.21 KB
08/10/2013 JC 2013/056 Explanation of Changes in Compilation of Data Joint Committee Final Report PDF
93.28 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 2013/055 Identification of Financial Conglomerates Joint Committee 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.
05/09/2013 JC 2013/050 Joint Committee report on risks and vulnerabilities in the EU financial system, August 2013 Joint Committee Final Report PDF
793.91 KB

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