European Securities and Markets Authority (ESMA) published, on Thursday 9 January, its strategic orientations for 2020-2022 which reflect the new responsibilities entrusted to it following several reforms in 2019.
ESMA thus becomes the direct supervisor of certain systemically important third-country central counterparty clearing houses (CCPs), but also critical EU benchmarks, third country benchmarks and benchmarks of selected data reporting service providers starting 1 January 2022.
From the revision of the European financial supervisory architecture (see EUROPE 12237/15), the Authority has inherited enhanced supervisory convergence tools, such as peer reviews, Q&As and collective supervisory actions.
It will also play an enhanced role in investor protection, developing retail risk indicators and reporting on consumer trends.
The EMIR 2.2 Regulation (see EUROPE 12213/32) also gives it new tasks for third country equivalence assessments, including monitoring regulatory and supervisory developments in equivalent third countries and assisting the Commission in preparing equivalence decisions.
The risks and opportunities of financial technology ('FinTech') will also continue to be among ESMA's priorities.
The Authority will also continue its work on sustainable finance. It promises, as well, to lead by example and to take environmental, social and governance (ESG) factors into account in its activities.
New organisation
To meet these new responsibilities, ESMA plans to hire massively. It announces that it will increase to 384 employees by 2022, whereas, according to figures available for the end of 2018, it currently employs 231 people.
It also needs to adapt its existing governance structures and decision-making processes, including the establishment of a CCP Supervisory Committee in accordance with EMIR 2.2.
Finally, ESMA aims to further reduce its environmental footprint. It has set itself the goal of becoming completely paperless by 2025. (Original version in French by Marion Fontana)