ESMA published its Work Program for 2018, which takes into account ESMA’s Strategic Orientation for 2016-2020. The work program sets out priorities and focus areas for 2018, in support of the ESMA mission to enhance investor protection and promote stable and orderly financial markets.
The key priorities and work areas for 2018 are as follows:
- Promoting supervisory convergence. Continue to support sound, efficient, and consistent implementation of new supervisory requirements, with emphasis on MiFID/MiFIR; complete IT systems either required by legislation or which increase efficiency of ESMA and/or national competent authorities; and develop and apply convergence tools, including peer reviews and stress tests
- Assessing risks to investors, markets and financial stability. Enhance analytical input into ESMA’s operational work, including stress tests, impact assessments, product assessments and financial stability monitoring; and establish adequate data management and statistics capabilities
- Completing the single rulebook for EU financial markets. Complete technical standards and technical advice related to key legislative developments: for example, Securitization, Prospectus, MMF, EMIR Review; maintain the existing Single Rulebook
- Directly supervising specific financial entities. Intensify supervision to ensure compliance with the spirit of the regulation. In 2018, a small increase is expected in the number of entities to supervise, particularly trade repositories
In addition, the possible changes proposed under the ESA and CCP Reviews, along with ongoing planning for the UK’s exit from the EU, present a changing environment for ESMA. This will require it to be prepared to adapt and reprioritize the 2018 work program, as needed. For 2018, the key focus areas under ESMA’s activities of supervisory convergence, assessing risks, single rulebook, and direct supervision will be:
- Providing guidance and promoting the consistent application of MiFID II and MiFIR by market participants and national competent authorities
- Ensuring the quality, integration, usability and transparency of the data that ESMA collects
- Contributing to the development of Level 2 measures in relation to the revised Prospectus regime
- Enhancing the effectiveness and lasting impact of supervisory activities at individual credit rating agencies (CRA) and trade repository level
Related Link: Work Program for 2018 (PDF)
Previous ArticleOSFI Welcomes Final Basel III Reforms
HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.
PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).
US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).
US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.
FSB finalized the toolkit of effective practices to assist financial institutions in their cyber incident response and recovery activities.
ECB published eleventh issue of the Macroprudential Bulletin, which provides insight into the ongoing work of ECB in the field of macro-prudential policy.
HM Treasury issued a call for evidence seeking views to reform the prudential regulatory regime—also known as Solvency II—of the insurance sector in UK.
ESRB responded to the EC consultation on review of Solvency II regime.
HM Treasury launched a consultation on Phase II of the Future Regulatory Framework Review, with the comment period ending on January 19, 2021.
EC adopted the work program for 2021.