ESMA Lauds National Regulators for Improving Oversight Roles

<p>The EU's financial markets regulator, the European
Securities and Markets Authority (ESMA), has released a follow-up report on the
progress the National Competent Authorities (NCAs) have made in improving their
practices. The <a href="https://www.esma.europa.eu/press-news/esma-news/national-regulators-strengthen-their-supervision-compliance-function" target="_blank" rel="follow">report</a> follows the findings and recommendations from
a peer review conducted by the ESMA in 2017.</p><p>The NCAs, which were
reviewed, CySEC, HCMC, CBI, AFM, and ATVP, have made progress in improving
their supervisory framework and undertaking investigations, the regulator said.
CySEC, HCMC, CBI, AFM, and ATVP are the financial regulators in
Cyprus, Greece, Iceland, the Netherlands, and Slovenia, respectively.</p><p>ESMA
Assesses Market Regulators </p><p>The ESMA peer review
conducted in 2017 assessed the competency of the NCAs based on their compliance
with certain aspects stated in the Markets in Financial Instruments Directive
(MiFID I), a regulation that aims to harmonies rules on investment services in
the EU. Additionally, the directive aims to protect investors and promote fair,
transparent, and integrated financial markets. </p><p>"The follow-up peer
review identifies that all NCAs have made progress since the last peer review
in addressing points of partial or insufficient compliance," the ESMA
stated. "The NCAs have strengthened supervisory practices." </p><p>However, the authority
made some recommendations, specifically for CySEC and the CBI. The <a href="https://www.financemagnates.com/tag/cysec/" target="_blank" rel="follow">CySEC</a> should consolidate its supervisory approach,
while the CBI should integrate all the aspects of the ESMA guidelines on
compliance, the regulator stated. Additionally, the ESMA recommended that the
CBI should strengthen its controls on the compliance of non-banking
investments. </p><p>Further Guidelines</p><p>Besides that, the
regulator has urged the NCAs to continue monitoring how effective their
supervisory practices are in light of the ESMA guidelines, which broadly focus
on compliance, monitoring, reporting, and advisory obligations.</p><p>In a separate report
issued by the ESMA yesterday (Wednesday), the regulator <a href="https://www.financemagnates.com/institutional-forex/esma-unveils-measures-to-curb-securities-lending-to-retail-investors/" target="_blank" rel="follow">released
the guidelines</a> for
lending securities to retail clients, <a href="https://www.financemagnates.com/tag/cysec/" target="_blank" rel="follow">Finance Magnates</a> reported. The guidelines outlined how securities
companies should protect clients' funds.</p><p>The regulator wants the
revenues made from the lending of securities to accrue to the retail clients
after the securities firms have deducted their expenses. On top of that, the
ESMA issued guidelines on how the securities companies may use the assets of retail clients.</p>

This article was written by Jared Kirui at www.financemagnates.com.