Financial Services Regulation & Compliance - Investment Firms Feb 2018


Reporting requirements for MiFID investment firms

The Central Bank amended its reporting requirements for MiFID investment firms. The table outlines the type of returns, the firms the return is applicable to and the frequency of the return.


ESMA updates Q&A on EMIR implementation

ESMA has issued an update to its Q&A on practical questions regarding EMIR. The updated Q&A includes a new answer in relation to operational aspects of access to the trade repository data.

ESMA updates Q&As on the Benchmarks Regulation

ESMA has published updated Q&As regarding the implementation of the Benchmarks Regulation. The updated Q&As include new answers on the topics of how the threshold in the exemption under Article 2(2)(g) should be calculated and the definition of a benchmark and investment funds.

ESMA updates its CSDR Q&As

ESMA has updated its Q&As in relation to the implementation of the Central Securities Depository Regulation (CSDR). The Q&As provide answers to questions regarding practical issues around the implementation of the new CSDR regime.

The first new Q&A clarifies that CSDs intending to provide data reporting services as defined under MIFID II should fully comply with the requirements set out therein. The second and third Q&As relate to risk monitoring committees for CSDs belonging to the same group of companies. The fourth Q&A clarifies that TARGET2-Securities (T2S) should not be subject to the provisions applicable to critical service providers, given that the organisational and operational safety, efficiency and resilience of T2S should be ensured through the dedicated legal, regulatory and operational framework and agreed governance arrangements.

ESMA issues conflict of interest guidelines for CCPs

ESMA has issued final guidelines on the management of conflict of interests for central counterparties (CCPs). ESMA developed the guidelines in order to clarify how CCPs should prevent or mitigate the risks of conflicts of interest and to ensure a consistent implementation across CCPs. The guidelines provide details on the circumstances where conflicts of interest could arise and specifies the corresponding organisational arrangements and procedures to be set up for group structures.

ESMA updates its MiFID II Q&As on transparency and market structures

ESMA has updated its Q&As regarding transparency issues under MiFID II and MiFIR in relation to pre-trade transparency waivers.

ESMA updates its Q&A on short selling

ESMA has updated its Q&As regarding the implementation of the Short Selling Regulation in relation to covering a short sale with claims to as yet unissued shares.

ESMA Technical Advice on the evaluation of certain elements of the Short Selling Regulation (SSR) of 21 December 2017

The Economic and Monetary Affairs Committee of the European Parliament held a scrutiny session on ESMA’s Technical Advice on the evaluation of certain elements of the Short Selling Regulation. ESMA’s technical advice focusses on three main topics related to the SSR:

  • The exemption for market making activities and the definition of market making activities.
  • The procedure for imposing short-term restrictions on short-selling.
  • The method of notification and disclosure of net short positions.

ESMA received 20 responses to the public consultation on the evaluation of certain elements of the Short Selling Regulation. Given the limited feedback received to the public consultation and the potential impact that the recent application of MiFID II might have on some of the recommendations included in the Technical Advice, ESMA highlighted that it may revise some elements of the Advice at a later stage.

EU Commission notices on the consequences of Brexit on Asset Management

The EU Commission published a notice setting out the consequences that the UK withdrawal from the EU will have on Asset management. The EU Commission explains that, unless a ratified withdrawal agreement establishes another date, all EU primary and secondary law will cease to apply to the UK from 30 March 2019. The UK will then become a third country.

ESMA interactive single rulebook

ESMA launched a new interactive single rulebook to help facilitate the consistent application of the EU single rulebook in the securities markets area. The new tool aims to provide a comprehensive overview of and easy access to all level 2 and level 3 measures adopted in relation to a level 1 text. This includes all relevant delegated and implementing acts adopted by the EU Commission including regulatory technical standards and implementing technical standards developed by ESMA and endorsed by the Commission, as well as guidelines, opinions and Q&As issued by ESMA.

For further information please contact a member of the Financial Regulation team.

Date Published: 15 March 2018