On 3 June 2014, the European Commission published its request to the EBA for technical advice on the product intervention framework for structured deposits under the Markets in Financial Instruments Regulation (“MiFIR”). Under MiFIR, ESMA, the EBA and national regulators will have the power to prohibit or restrict in Member States, the marketing, distribution or sale of certain financial instruments or structured deposits or a specific financial activity or practice when there is a threat to the orderly functioning of the financial or commodity markets, the stability of the whole or part of a Member State’s financial system or if there are significant investor protection concerns. The European Commission is due to adopt secondary legislation setting out the criteria and factors that national regulators must take into account when considering using their product intervention powers. The request for technical advice, addressed to ESMA on 23 April 2014, includes a request for advice on the product intervention framework. The European Commission requests that the EBA and ESMA work together to develop their technical advice, which is to be provided to the Commission six months after MiFIR comes into force (currently expected in June 2014).

The European Commission’s request to the EBA is available at: 

http://ec.europa.eu/internal_market/securities/docs/isd/mifid/140516-request-for-e ba-technical-advice-concerning-mifid-2_en.pdf.