Corporate Information

The Board of Supervisors of the European Securities and Markets Authority (ESMA) has appointed the following individuals to serve as chairs of its standing committees:

·         Carmine Di Noia, Commissioner of the Commissione Nazionale per le Società e la Borsa (CONSOB), Italy, will chair the Committee for Economic and Markets Analysis;

·         Christopher Buttigieg, Director of the Securities and Markets Supervision Unit at the Malta Financial Services Authority (MFSA), will chair the Data Standing Committee;

·         Martin Moloney, Head of Markets Policy Division at the Central Bank of Ireland (CBI)  will chair the Investment Management Standing Committee; and  

·         Merel van Vroonhoven, Chair of the Autoriteit Financiële Markten (AFM), Netherlands will chair the Investor Protection and Intermediaries Standing Committee.

The standing committees are expert groups drawn from ESMA staff and the national competent authorities for securities markets regulation in the Member States, and are responsible for the development of policy in their respective areas.

The appointments of the chairs to the Data, Investment Management and Investor Protection and Intermediaries Standing Committee are effective immediately for a period of two years until 30 October 2020. While the new chair of the Committee for Economic and Markets Analysis replaces the previous chair, effective immediately, and will complete the current term which ends on 30 September 2019.

The three European Supervisory Authorities (ESA - ESMA, EBA and EIOPA) have today written a letter to the European Financial Reporting Advisory Group (EFRAG) regarding the endorsement process of the International Financial Reporting Standard (IFRS) 17.

 

ESMA Chair, Steven MAijoor, delivered today a keynote speech at the Banco de Espana - CEMFI - FSI High-Level Conference in Madrid, Spain. 

Steven Maijoor, Chair of the European Securities and Markets Authority (ESMA), has delivered the following statement to the Economic & Monetary Affair Committee (ECON) at the European Parliament as part of the annual hearing of the chairs of the three European Supervisory Authorities (ESAs).

 

MiFID II

In his statement Mr. Maijoor focused on ESMA’s progress on the implementation of MiFID II:

“MiFID II has given a new perspective on the use of ESMA’s Opinions: in the last 12 months, ESMA issued around 400 Opinions to NCAs on both pre-trade transparency waivers and position limits in commodity contracts, and a few hundred more will be finalised soon.”

“The application date of the MiFID II/MiFIR package marked the assignment of new product intervention powers to ESMA. This was an important development for retail investors in the EU, who have been put at risk for years by Binary Options and Contracts for Differences (CFDs), distributed across the EU out of a few Member States. Equipped with these new powers, ESMA adopted in spring this year measures banning Binary Options and restricting the sales, marketing and distribution of CFDs, and so directly improved retail investor protection across the Union.”

“Overall, I believe that MiFID II implementation is a very good example of what ESMA’s contribution to investor protection, orderly markets and financial stability in the EU financial markets can and should be. I would underline that this project is still ongoing, and significant allocation of resources, in particular for data and IT issues, market monitoring and supervisory convergence work, continues to be planned over the next months.”

Capital Markets Union

“We have progressed swiftly on a number of Level 2 mandates assigned to ESMA under the new Prospectus and Securitisation Regulations. In both cases, the co-legislators arranged for a sufficiently long implementation period, which is helpful for planning and executing ESMA’s work.

“Furthermore, ESMA has continued to support the CMU project through its multiple supervisory convergence activities. This included, during the year, important peer reviews – on Guidelines dealing with Efficient Portfolio Management Techniques (EPM) for UCITS and on certain aspects of the compliance function under MiFID I – and the cross-sectoral project on the performance and fees of investment services, which has been carried out jointly with the EBA and EIOPA.. I believe it is important to keep the momentum of these convergence activities, as a number of CMU areas require further attention, including participation of retail investors in the capital markets.”

UK withdrawal from the European Union

He also spoke about ESMA’s work on preparing for the withdrawal of the UK from the European Union:

“[As] as the supervisor of Credit Rating Agencies and Trade Repositories in the EU with a number of them headquartered in London – ESMA required appropriate contingency planning from individual supervised entities. We are carefully monitoring the execution of these plans to ensure that they are meeting all the requirements in the EU27 in case of a no-deal by the end of March 2019.”

Joint Committee of the European Supervisory Authorities

As the current Chair of the Joint Committee of the three European Supervisory Authorities, Steven Maijoor also delivered a statement on the work of the Joint Committee over the past year, focusing primarily on PRIIPs issues and developments in anti-money laundering.

The European Securities and Markets Authority (ESMA) has published its 2019 Work Programme (WP), which sets out its priorities and areas of focus for 2019 in support of ESMA’s mission to enhance investor protection and promote stable and orderly financial markets.

ESMA, in line with its Strategic Orientation 2016-2020, will maintain its focus on its activities of supervisory convergence and assessing risks in financial markets. Additionally, ESMA will take on new direct supervisory responsibilities under the Securities Financing Transactions Regulation (SFTR) and the Securitisation Regulation. It will also support the Sustainable Finance Initiative through a set of priority actions, aiming to integrate environmental, social and governance (ESG) considerations as part of the investment chain.

Preparations for the UK’s withdrawal from the European Union will continue to be a major focus for ESMA in 2019. This will require ESMA to be prepared to adapt and reprioritise the WP as needed. Further adaptation of ESMA’s work programme in 2019 could be required to take account of the potential revisions of ESMA’s mandate under the Review of the European System of Financial Supervision (ESAs’ Review) and EMIR 2.2.

Steven Maijoor, Chair, said:

“In 2019 ESMA will continue its focus on promoting supervisory convergence and assessing risks with a continued emphasis on the consistent implementation of MiFID II/MiFIR, but with an added focus on utilising the data gathered under this regime to assist us in meeting our stability, orderly markets and investor protection objectives.

“The transition to MiFID in 2018 has required us to be flexible and adaptable in managing the introduction of the regime and this will be invaluable to the organisation as we continue our preparations for the UK’s withdrawal from the European Union. This will make demands on ESMA, and NCAs, in terms of supervisory convergence work, financial stability work as well as third-country policies.

“Additionally, we continue to plan for possible changes to ESMA’s mandate under the ESAs and EMIR Reviews. We will be flexible in adapting and reprioritising the Work Programme to this changing environment while continuing to meet our responsibilities in enhancing investor protection and promoting stable and orderly markets.”

In 2019 the key areas of focus under ESMA’s activities of supervisory convergence, assessing risks, single rulebook and direct supervision will be:

·         Supporting the consistent application of MiFID II and MiFIR along with the Prospectus Regulation and Securitisation Regulation by market participants and National Competent Authorities (NCAs);

·         Utilising the data gathered under MiFID II/MiFIR to support its work on stable and orderly markets;

·         Contributing to the implementation of the Capital Markets Union Action Plan and of the Fintech Action Plan; and

·         Enhancing the effectiveness of its supervisory activities for credit rating agencies (CRA) and trade repositories (TR), while preparing for the registration and supervision of new entities under the Securitisation Regulation and SFTR.