ESMA publishes Final Report on revised technical standards for passporting

11/07/2023

The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today published its Final Report on the review of the technical standards for passporting under Article 34 of MiFID II.

ESMA’s proposals include targeted amendments to the existing RTS and ITS that would add new information requirements to the list of details investment firms have to provide at the passporting stage.

A new investment services and activities passport notification will also provide National Competent Authorities (NCAs) with additional information on a firm’s planned or existing cross-border activities. ESMA and the NCAs observe a continued increase in cross-border activities provided to retail clients by investment firms across the EU. 

This has clear benefits for consumers and investment firms, as it fosters competition, and increases the investment options available to retail investors. Cross-border activities also require NCAs to increase their supervisory focus and cooperation efforts as there is a risk of undermining investors’ trust which, in the long term, has the potential to hamper the development of the single market.

Next steps

ESMA has submitted the Final Report to the European Commission (EC) and will provide further advice and technical guidance should the EC decide to proceed with the review.

 

Further information:

Sarah Edwards 

Senior Communications Officer

press@esma.europa.eu

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