ESMA

ESAs consult on draft implementing technical standards specifying certain tasks of collection bodies and certain functionalities of the European Single Access Point

Retrieved on: 
Monday, January 8, 2024

ESAs consult on draft implementing technical standards specifying certain tasks of collection bodies and certain functionalities of the European Single Access Point

Key Points: 
  • ESAs consult on draft implementing technical standards specifying certain tasks of collection bodies and certain functionalities of the European Single Access Point
    The three European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) today published a Consultation Paper on the draft implementing technical standards (ITSs) regarding the tasks of the collection bodies and the functionalities of the European Single Access Point (ESAP).
  • Stakeholders are encouraged to provide their feedback to this consultation by 8 March 2024.
  • The purpose of the ESAP is to facilitate access to publicly available information of relevance to financial services, capital markets and sustainability.
  • Next steps
    The ESAs will consider the feedback received to this consultation and will submit the draft ITSs to the European Commission by 10 September 2024.

ESMA offers recommendations on digitalisation of retail investment services

Retrieved on: 
Tuesday, January 2, 2024

ESMA offers recommendations on digitalisation of retail investment services

Key Points: 
  • ESMA offers recommendations on digitalisation of retail investment services
    The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published today a discussion paper on the digitalisation of retail investment services and related investor protection considerations.
  • ESMA is seeking stakeholders input by 14 March 2024 on recommendations regarding online disclosures, digital tools, and marketing practices.
  • In the Discussion Paper ESMA explores the evolving landscape of retail investments.
  • Based on the supervisory experience of the National Competent Authorities (NCAs) and relevant academic literature, ESMA assesses both the opportunities and the potential risks linked to digitalisation.

ESMA proposes changes and updates timeline for its Guidelines on funds’ names

Retrieved on: 
Tuesday, January 2, 2024

ESMA proposes changes and updates timeline for its Guidelines on funds’ names

Key Points: 
  • ESMA proposes changes and updates timeline for its Guidelines on funds’ names
    The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today provides an update on the status of ESMA’s guidelines on ESG and sustainability-related terms in fund names, including details on the timing of their publication.
  • Since the launch of the work on the guidelines, the AIFMD and UCITS Directive reviews have progressed.
  • ESMA has decided to postpone the adoption of the Guidelines to ensure that the outcome of these reviews may be fully considered.
  • Managers of new funds would be expected to comply with the Guidelines in respect of those funds from the date of application of the Guidelines.

ESMA consults on draft guidelines for supervision of corporate sustainability information

Retrieved on: 
Tuesday, January 2, 2024

ESMA consults on draft guidelines for supervision of corporate sustainability information

Key Points: 
  • ESMA consults on draft guidelines for supervision of corporate sustainability information
    15/12/2023
    The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched a consultation on a set of draft Guidelines on Enforcement of Sustainability Information and is inviting comments from interested stakeholders by 15 March 2024.
  • The main goals of the draft Guidelines are to:
    - Ensure that national competent authorities carry out their supervision of listed companies’ sustainability information under the Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards and Article 8 of the Taxonomy Regulation in a converged manner; and
    - Establish consistency in, and equally robust approaches to, the supervision of listed companies’ sustainability and financial information; this will facilitate increased connectivity between the two types of reporting.
  • The consultation paper will be of interest to listed companies required to publish sustainability information by the CSRD and Article 8 of the Taxonomy Regulation, to investors and other users of sustainability information and to auditors and independent assurance services providers.
  • Next steps
    ESMA will consider the feedback received and expects to publish the final Guidelines in Q3 2024.

ESMA consults on potential changes to the CSDR penalty mechanism

Retrieved on: 
Tuesday, January 2, 2024

ESMA consults on potential changes to the CSDR penalty mechanism

Key Points: 
  • ESMA consults on potential changes to the CSDR penalty mechanism
    The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today published a Consultation Paper on Technical Advice to the European Commission on the CSDR penalty mechanism.
  • The consultation runs until 29 February 2024.
  • The aim of the consultation is to collect evidence and data from stakeholders on the effectiveness of the current penalty mechanism in discouraging settlement fails and incentivising their rapid resolution.
  • The feedback it receives will feed into ESMA’s Technical Advice, which is expected to be sent to the European Commission by the end of September 2024.

The average cost of retail investment products declines but significant differences across EU Member States remain

Retrieved on: 
Tuesday, January 2, 2024

The European Securities and Markets Authority (ESMA), the EU financial markets regulator and supervisor, today publishes its sixth market report on the costs and performance of EU retail investment products. In this annual report ESMA finds that the average costs of investing in key EU retail financial products has declined by the end of 2022. However, cost heterogeneity persisted across EU Member States. Verena Ross, ESMA Chair, said: “ESMA’s annual reporting on the costs and performance of retail investment products provides a clear overview and shows developments across the EU markets. Costs and performance are key determinants of whether retail investors benefit from their investments, and whilst it is to be welcomed that the cost incurred by investors has slowly declined, retail investors still need to consider costs carefully in their investment decisions.”“In 2022, investors were faced with a difficult environment characterised by lower returns and elevated level of inflation, accentuating the importance of the level of costs.  Clear, comprehensive and comparable information on retail investment products can help investors assess the past performance and costs of products offered across the EU and assist them in making well-informed investment choices.” The key findings in the report are: Costs and performance of retail investment products are key determinants of the benefits for retail investors in the EU.

Key Points: 


The European Securities and Markets Authority (ESMA), the EU financial markets regulator and supervisor, today publishes its sixth market report on the costs and performance of EU retail investment products. In this annual report ESMA finds that the average costs of investing in key EU retail financial products has declined by the end of 2022. However, cost heterogeneity persisted across EU Member States. Verena Ross, ESMA Chair, said: 

“ESMA’s annual reporting on the costs and performance of retail investment products provides a clear overview and shows developments across the EU markets. Costs and performance are key determinants of whether retail investors benefit from their investments, and whilst it is to be welcomed that the cost incurred by investors has slowly declined, retail investors still need to consider costs carefully in their investment decisions.”
“In 2022, investors were faced with a difficult environment characterised by lower returns and elevated level of inflation, accentuating the importance of the level of costs.  Clear, comprehensive and comparable information on retail investment products can help investors assess the past performance and costs of products offered across the EU and assist them in making well-informed investment choices.”


The key findings in the report are:

  • Costs and performance of retail investment products are key determinants of the benefits for retail investors in the EU.
  • Clear and comprehensive information on retail investment products can help investors assess the past performance and costs of products offered across the EU and foster retail investor participation in capital markets.  ESMA’s report helps to monitor progress in this regard by providing consistent EU-wide information on cost and performance of retail investment products.
Webinar


ESMA is organising together with the European Insurance and Occupational Pensions Authority (EIOPA) a joint webinar “ESMA’s and EIOPA’s Annual Cost and Past Performance Report” to share the findings of: 
The webinar will be held online on 10 January 2024, 10:30 – 11:30 CET.    Further information:

Solveig Kleiveland

ESMA finalises technical standards under the revised ELTIF regulation

Retrieved on: 
Tuesday, January 2, 2024

ESMA finalises technical standards under the revised ELTIF regulation

Key Points: 
  • ESMA finalises technical standards under the revised ELTIF regulation
    The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today published the final report setting out the draft Regulatory Technical Standards (RTS) for the European Long-Term Investment Fund (ELTIF) regulation.
  • the possibility of full or partial matching (before the end of the life of the ELTIF) of transfer requests of units or shares of the ELTIF by exiting ELTIF investors with transfer requests by potential investors; and
    - the costs disclosure.
  • ESMA has considered the feedback received from 23 stakeholders that responded to the last public consultation and agreed amendments.
  • Next steps
    ESMA submitted the draft technical standards to the European Commission for endorsement and final approval.

ESMA updates the parameters and methodology for MMF stress testing

Retrieved on: 
Tuesday, January 2, 2024

ESMA updates the parameters and methodology for MMF stress testing

Key Points: 
  • ESMA updates the parameters and methodology for MMF stress testing
    The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published the Final Report on the Guidelines on stress test scenarios under the Money Market Funds Regulation (MMFR).
  • The Final Report combines an update of the methodology to implement the scenario related to the hypothetical changes in the level of liquidity of the assets held in the portfolio of the MMF, with the annual calibration of the risk parameters.
  • Based on feedback received from stakeholders, the revised methodology includes parameters reflecting the liquidity stress affecting the money market and a new risk factor to simulate the additional impact of asset sales under stress market conditions.
  • In calibrating the new risk parameters ESMA has worked closely with the European Systemic Risk Board and the European Central Bank.

ESMA presents methodology for climate risk stress testing and analysis of the financial impact of greenwashing controversies

Retrieved on: 
Tuesday, January 2, 2024

ESMA presents methodology for climate risk stress testing and analysis of the financial impact of greenwashing controversies

Key Points: 
  • ESMA presents methodology for climate risk stress testing and analysis of the financial impact of greenwashing controversies
    The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today published two articles, one outlining an approach to modelling the impact of asset price shocks from adverse scenarios involving climate-related risks, the other exploring the use of ESG controversies for the purpose of monitoring greenwashing risk.
  • The analysis focuses on the overall direction of these effects, finding that investor outflows can worsen falls in fund values following an initial shock.
  • Dynamic modelling of climate-related shocks in the fund sector is part of ESMA’s work in relation to its mandates in the area of climate stress testing.
  • Risk article: Financial impact of greenwashing controversies
    The article highlights how data on ESG controversies can be useful to monitor potential reputational risks around greenwashing.

ESAs propose extending the EMIR equity option exemption

Retrieved on: 
Tuesday, January 2, 2024

ESAs propose extending the EMIR equity option exemption

Key Points: 
  • ESAs propose extending the EMIR equity option exemption
    The three European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) published today the joint draft regulatory technical standards (RTS) under the European Market Infrastructure Regulation (EMIR) where they are proposing a two-year extension to the equity option exemption from bilateral margining, as well as issue a no-action opinion.
  • Today’s draft RTS provide clarity to market participants on how to handle equity options as from 4 January 2024, the date on which the current temporary exemption is set to expire.
  • More specifically, the ESAs are proposing to extend the temporary exemption and are issuing a no-action Opinion which includes clarifications on the supervisory expectations.
  • These texts introduce specific provisions on equity options, including a permanent exemption.