ESMA Newsletter Overview
The latest newsletter from the European Securities and Markets Authority (ESMA) serves as a comprehensive resource for stakeholders involved in the finance domain, particularly highlighting recent initiatives aimed at optimizing the reporting frameworks within EU financial markets. In its June and July issues, the newsletter emphasizes ongoing efforts to simplify the reporting processes for financial transactions. ESMA invites stakeholders to provide feedback on enhancing the ease of supervisory reporting and the reporting of data related to funds.
Cryptocurrency Regulation
In the realm of cryptocurrency, ESMA has pinpointed areas to fortify the MiCA (Markets in Crypto-Assets Regulation) authorisation process. A recent Peer Review focused on the supervisory practices of the Malta Financial Services Authority (MFSA), revealing a generally strong level of oversight. However, it also pointed out specific sectors where improvements could be made for better regulatory compliance.
Sustainability Principles
The newsletter also introduces four key principles aimed at guiding sustainability claims in non-regulatory communications. These principles come with practical recommendations illustrated by examples of effective and ineffective practices observed in the market.
Common Supervisory Action
Throughout 2023 and into 2024, ESMA in collaboration with National Competent Authorities (NCAs) is undertaking the Common Supervisory Action (CSA), which focuses on incorporating sustainability risks and disclosures into the investment management landscape. While the overall adherence to the outlined framework has been deemed satisfactory, there are still significant areas ripe for enhancement.
Additional Publications and Announcements
In addition to these highlights, the newsletter includes several important publications, such as:
- The announcement of Ediphy (fairCT) as the inaugural Consolidated Tape Provider for bonds.
- Guidance on assets eligible for UCITS.
- A report assessing the DLT Pilot Regime’s performance.
- An examination of the active account requirement as stipulated under EMIR 3.
- Essential advice regarding the simplification of prospectuses.
- A cautionary statement for investors concerning risks related to crypto-asset service providers (CASPs) offering both regulated and unregulated products.
- The final report detailing the criteria for assessing knowledge and competence under MiCA.
Readers are encouraged to stay informed about open consultations and updates by following ESMA on LinkedIn and X.
