As in 2017, preparatory activities for Brexit dominated the work of the European Securities and Markets Authority (ESMA) in 2018, says its annual report published on Monday 17 June.
“2018 in many ways reshaped capital markets in the EU. In a year often defined by two contrasting dynamics – the implementation of the greatest change to EU capital markets in a decade with the Markets in Financial Instruments Directive (MiFID II) and preparations for the departure of the largest EU capital market with Brexit – ESMA can reflect with pride that it has delivered in advancing its core missions of enhancing investor protection and promoting stable and orderly financial markets”, writes the Authority's President Steven Maijoor in the report.
In the context of Brexit, ESMA has monitored the authorisation activities of the national competent authorities (NCAs) for the relocation of companies to the Twenty-Seven by examining more than 80 cases of relocation. It also coordinated the preparation of Memoranda of Understanding between the EU and UK NCAs, notably in the field of clearing and for investment funds, while monitoring the associated risks. Brexit will remain at the top of its agenda in 2019 (see EUROPE 12197/21).
In 2018, ESMA also focused on investor protection. In addition, the report recalls that it took the groundbreaking decision to temporarily ban the marketing of binary options and to restrict the provision of financial contracts on difference (CFDs) to retail investors in the EU – two derivatives considered high risk for consumers due to their complexity and opacity (see EUROPE 11991/18).
In addition, ESMA imposed several fines totalling €2.48 million on a Danish bank (Danske Bank) and four Swedish banks (SEB, Nordea Bank, Svenska Handelsbanken and Swedbank) for issuing credit ratings without authorisations (see EUROPE 12068/20).
See the report: https://bit.ly/31CIyqr (Original version in French by Marion Fontana)