ESMA publishes updated Q&As for AIFMD, UCITS and transparency issues for MiFID II
05 June 2019 Paris
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The European Securities and Markets Authority (ESMA) has published updated Q&As on the application of the Alternative Investment Fund Managers Directive (AIFMD) and the UCITS Directive.
The Q&As relate to the distinction between depositary functions and mere supporting tasks that are not subject to the delegation requirements set out in the AIFMD and UCITS Directive as well as delegation of safekeeping functions.
It also covers performance of depositary functions where there are branches in other member states, supervision of depositary functions in case of branches in other member states and
delegation of depositary functions to another legal entity within the same group.
ESMA has also updated its Q&As regarding transparency issues under the Market in Financial Instruments Directive (MiFID II) and Regulation.
The updated Q&As provide clarification on the mandatory systematic internaliser (SI) regime, the voluntary SI regime and quoting obligation for SI in non-traded on a trading venue instruments.
In addition, ESMA is launching a common supervisory action (CSA) which participant national competent authorities (NCAs) will carry out simultaneously, in H2 2019.
The supervisory activity will focus on the application of the MiFID II requirements on the assessment of appropriateness, a topic on which ESMA has recently published a supervisory briefing that will serve as a starting point for the CSA.
NCAs that participate in the CSA will assess the application of the appropriateness requirements by a sample of investment firms under their supervision.
ESMA said: “The correct application of the MiFID II requirements on the assessment of appropriateness is key to ensuring the protection of investors in the case of transactions that are not accompanied by investment advice.”
The Q&As relate to the distinction between depositary functions and mere supporting tasks that are not subject to the delegation requirements set out in the AIFMD and UCITS Directive as well as delegation of safekeeping functions.
It also covers performance of depositary functions where there are branches in other member states, supervision of depositary functions in case of branches in other member states and
delegation of depositary functions to another legal entity within the same group.
ESMA has also updated its Q&As regarding transparency issues under the Market in Financial Instruments Directive (MiFID II) and Regulation.
The updated Q&As provide clarification on the mandatory systematic internaliser (SI) regime, the voluntary SI regime and quoting obligation for SI in non-traded on a trading venue instruments.
In addition, ESMA is launching a common supervisory action (CSA) which participant national competent authorities (NCAs) will carry out simultaneously, in H2 2019.
The supervisory activity will focus on the application of the MiFID II requirements on the assessment of appropriateness, a topic on which ESMA has recently published a supervisory briefing that will serve as a starting point for the CSA.
NCAs that participate in the CSA will assess the application of the appropriateness requirements by a sample of investment firms under their supervision.
ESMA said: “The correct application of the MiFID II requirements on the assessment of appropriateness is key to ensuring the protection of investors in the case of transactions that are not accompanied by investment advice.”
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