ESMA updated question and answer (Q&A) documents on the European Markets Infrastructure Regulation (EMIR), temporary product intervention measures of ESMA in relation to contracts for differences (CFDs) and binary options, and the implementation of investor protection topics under the Market in Financial Instruments Directive and Regulation (MiFID II/MiFIR).
The updates include the following:
- Q&A on EMIR— The updates cover amendments to the existing General Q&A on identification of counterparties to a derivative, also confirming that a portfolio manager could be a counterparty to a derivative when entering into a derivative on its own account and own behalf. It also includes amendments to the existing trade repositories Q&A on Legal Entity Identifier (LEI), which simplify the description of the existing process. The amendments also explain other processes trade repositories should follow in scenarios where the reports must be updated in relation to the LEI. A new case for reporting derivatives has also been added to the Part IV of the Q&A, which explains the procedure for reporting to trade repositories in a transaction scenario involving portfolio management companies.
- Q&A on product intervention measures—ESMA updated Q&A on temporary product intervention measures of ESMA on the marketing, distribution or sale of CFDs and binary options to retail clients based on Article 40 of MiFIR. The Q&A provides clarification on the application of the temporary product intervention measures on clients established outside the Union and non-Union nationals.
- Q&A on MiFID/MiFIR—The updates include new Q&As on the topics of inducements (research) and provision of investment services by thir- country firms. The overall MiFID II Q&A provide clarifications on topics such as best execution, suitability and appropriateness, post-sale reporting, record keeping, and investment advice on an independent basis.
The Q&A mechanism is a practical convergence tool used to promote common supervisory approaches and practices. It is intended to help investors and other market participants by providing clarity on the regulatory requirements.
Keywords: Europe, EU, Securities, EMIR, MiFID/MiFIR, Product Intervention Measures, Q&A, Investor Protection, ESMA
Previous ArticleEC Issues Regulations Supplementing AIFMD and UCITS Directive
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.