ESMA publishes first MiFID 2 RTS: ESMA has published the first set of Regulatory and Implementing Technical Standards (RTS and ITS) due under the MiFID 2 packages (revised Markets in Financial Instruments Directive (MiFID 2) and Markets in Financial Instruments Regulation (MiFIR)). The standards cover:

  • RTS and ITS on applications for authorisation;
  • RTS and ITS on notifications for passporting by way of service or branch of investment services or activities by investment firms or credit institutions; and
  • RTS on information third-country firms applying for registration with ESMA must provide and what they must tell their EU clients.

The Commission now has three months to approve the standards. ESMA had previously written to the Commission suggesting the remaining RTS and ITS due on 3 July would be unlikely to be finished before September. The press release accompanying these documents suggests they may not be published until the end of the year. (Source: ESMA Publishes First MiFID 2 RTS)

ESMA publishes FAQs on AML risks in investment-based crowdfunding: ESMA has issued a set of questions and answers on money laundering and terrorist finance risks in investment-based crowdfunding. ESMA's main purpose was to analyse the risks of platforms that fall outside the scope of the current Money Laundering Directive (MLD3). It notes particularly the risks of models that carry out no due diligence, and those that take money for swift onwards transmission. Further, it notes that some platforms which fall outside the current MiFID and are also exempt from the Payment Services Directive do nevertheless fall under MLD3. It also notes that Member States should include within domestic anti-money laundering (AML) legislation other businesses that carry a high risk of terrorist finance and says some regulators may wish to reconsider their position on investment-based crowdfunding platforms. In theory, it says, all platforms should carry out similar levels of due diligence. (Source: ESMA Publishes FAQs on AML Risks in Investment-Based Crowdfunding)

ESMA consults on CSDR RTS: ESMA is consulting on limited specific aspects of the RTS due under the Central Securities Depository Regulation (CSDR). Most of the RTS are delayed, but ESMA now seeks views by 6 August on the provisions on buy-in. ESMA has identified three options and produced draft RTS for each of them. The options are:

  • Option 1 – Trading level execution
  • Option 2 – Trading level with fall-back option execution
  • Option 3 – CSD participant level execution 

ESMA will use the responses to the consultation when it produces the final RTS in September. (Source:ESMA Consults on CSDR RTS)

ESMA fines CRA for compliance failures: ESMA has fined DBRS Ratings Limited €30,000 for failure to comply with a number of requirements in the Credit Rating Agencies (CRA) Regulation. ESMA found failings around corporate governance, compliance and record-keeping requirements and decided to impose the first fine under the CRA Regulation. (Source: ESMA Fines CRA for Compliance Failures)

ESMA agrees Greek short-selling ban: ESMA has agreed to a seven-day emergency short-selling prohibition proposed by the Hellenic Capital Market Commission under the Short Selling Regulation. The ban, lasting a week from 30 June, will temporarily prohibit transactions in any financial instrument that creates, or increases, a net short position on any of the shares admitted to trading on the Athens Exchange and Multilateral Trading Facility “EN.A”. (Source: ESMA Agrees Greek Short-Selling Ban)