ESMA focusing on MiFID II for 2017
17 October 2017 Paris
Image: Shutterstock
The Markets in Financial Instruments Regulation (MiFIR) and Directive (MiFID) II, will be a key priority for the European Securities and Markets Association (ESMA) over the next year, according to the association’s 2017 work programme.
ESMA will work to promote consistent application of the MiFID framework. It will encourage coordination between national competent authorities on supervision and application of both the regulation and directive, and in their approach to investor protection.
The association will also follow up on recommendations arising from the peer review report on suitability under MiFID II, and will complete its peer review on the guidelines of the MiFID II compliance function.
According to ESMA, the focus on the MiFID framework is intended to lead to better convergence and understanding on supervisory approaches and practices with regards to MiFID II and MiFIR, across the EU and the European Economic Area (EEA). This is particularly important regarding conduct of business and organisation requirements for investment firms, ESMA said.
ESMA will also focus on market integrity, providing guidance to market participants and national competent authorities on MiFIR, the Market Abuse Regulation, short selling and benchmarks regulation, and the Securities Financing Transactions Regulation.
Following a barrage of technical standards regarding market integrity, ESMA will respond to these regulations, mainly through issuing question-and-answer reports and issuing guideline.
MiFID II comes into effect on 3 January 2017, and so ESMA intends to produce a question and answer report on MiFIR reporting, order record keeping, reference data and clock synchronisation.
According to the work programme, ESMA will continue work on developing a ‘single rulebook’ to be applied consistently across the EU.
It will also focus on opportunities and methodologies for conducting pan-European stress tests of investment funds and take steps towards establishing the Capital Markets Union.
Other priorities highlighted in the programme were a focus on data quality and assessing the risks therein, and direct supervision of credit rating agencies and trade repositories and their ancillary services.
ESMA clarified that its overarching aim is “to improve investor protection and promote stable and orderly financial markets”.
ESMA will work to promote consistent application of the MiFID framework. It will encourage coordination between national competent authorities on supervision and application of both the regulation and directive, and in their approach to investor protection.
The association will also follow up on recommendations arising from the peer review report on suitability under MiFID II, and will complete its peer review on the guidelines of the MiFID II compliance function.
According to ESMA, the focus on the MiFID framework is intended to lead to better convergence and understanding on supervisory approaches and practices with regards to MiFID II and MiFIR, across the EU and the European Economic Area (EEA). This is particularly important regarding conduct of business and organisation requirements for investment firms, ESMA said.
ESMA will also focus on market integrity, providing guidance to market participants and national competent authorities on MiFIR, the Market Abuse Regulation, short selling and benchmarks regulation, and the Securities Financing Transactions Regulation.
Following a barrage of technical standards regarding market integrity, ESMA will respond to these regulations, mainly through issuing question-and-answer reports and issuing guideline.
MiFID II comes into effect on 3 January 2017, and so ESMA intends to produce a question and answer report on MiFIR reporting, order record keeping, reference data and clock synchronisation.
According to the work programme, ESMA will continue work on developing a ‘single rulebook’ to be applied consistently across the EU.
It will also focus on opportunities and methodologies for conducting pan-European stress tests of investment funds and take steps towards establishing the Capital Markets Union.
Other priorities highlighted in the programme were a focus on data quality and assessing the risks therein, and direct supervision of credit rating agencies and trade repositories and their ancillary services.
ESMA clarified that its overarching aim is “to improve investor protection and promote stable and orderly financial markets”.
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