Steven Maijoor spoke to the British Bankers’ Association (BBA) on restoring investor confidence. He looked at the reasons for loss of confidence and spoke on many initiatives aimed at rebuilding it. He spoke specifically about:

  • incentives, remuneration and suitability of advice. He said the problems caused by improper incentives could not be solved by increased transparency alone, and that inducement bans are the way forward;
  • the single rulebook, which ESMA is working hard to create;
  • the technical standards under the European Market Infrastructure Regulation (EMIR). He said ESMA has taken account of feedback to its consultations on technical standards but has not in all cases implemented the changes respondents asked for. He also noted that there are ongoing discussions on which transactions outside the EEA should be subject to EMIR requirements;
  • short selling guidelines; and
  • domestic and EU initiatives on interest rate benchmarking.

(Source: ESMA Speaks on Reform)