EU Agencies Issue Updates on DORA, ESAP, and Crowdfunding Regulation
The European Supervisory Authorities (ESAs) published a discussion paper on their joint advice to the European Commission (EC) on proposals to specify criteria for critical information and communication technology (ICT) third-party service providers and to determine the oversight fees levied on such providers under the Regulation on Digital Operational Resilience Act (DORA). Additionally, EC welcomed the political agreement reached between the European Parliament and the Council on the proposal for a European Single Access Point (ESAP) and approved the merger between Credit Suisse and UBS, also concluding that the merger would not significantly reduce competition in the markets where their activities overlap within the European Economic Area. Finally, the European Securities and Markets Authority (ESMA) updated the questions and answers (Q&A) on the European crowdfunding service providers for business Regulation.
The discussion paper on ESAs’ joint advice to EC in context of DORA is aimed to consult market participants, in an open and transparent manner, on the proposals of ESAs toward the specific issues listed in the EC Call for Advice. With regard to the criteria for critical ICT third-party service providers, a number of relevant quantitative and qualitative indicators have been proposed for each of the criticality criteria, along with the necessary information to build up and interpret such indicators. The discussion paper notes that these proposals relate to the identification of indicators relevant to assessing criticality and not to the methodology for that assessment, including the materiality and interaction of the different criteria. The expected type and total number of critical ICT third-party service providers, the details of the designation procedure, and the related methodology are explicitly excluded from this discussion paper and shall be defined at a later stage in the context of the implementation of the oversight framework. The discussion paper also presents proposals in relation to the amount of the fees levied on critical ICT third-party service providers and the way in which they are to be paid. ESAs expect market participants to provide feedback on the proposals by June 23, 2023. ESAs will consider the feedback in finalizing the joint technical advice to EC, which is expected to be delivered by September 30, 2023.
Another key development is the political agreement on the proposed ESAP, which builds on the EC proposal presented in the Capital Markets Union Package of November 2021. The ESAP will offer a single access point for public financial and sustainability-related information about European Union companies and investment products. This will give companies more visibility toward investors, opening up more sources of financing particularly for small companies in small capital markets, in line with the Digital Finance Strategy of EC. The ESAP will also provide an easy access to the corporate sustainability reporting published by companies, which will support the objectives of the European Green Deal.
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Keywords: Europe, EU, Banking, DORA, ICT, Q&A, ESAP, Regtech, Crowdfunding Service Providers, Third Party Providers, Operational Resilience, Credit Suisse, UBS, EC, ESAs
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