On Tuesday 23 November, the European Commission will propose that the European Securities and Markets Authority (ESMA) set up, by the end of 2024, a European Single Access Point (ESAP) which will centralise on a single platform all the regulatory information on their activities and products that financial players must provide to supervisors.
Representing one of the priority actions of the Capital Markets Union (CMU) Action Plan (see EUROPE 12562/9), the creation of this single point of contact will contribute to the integration of financial services and capital markets in the EU and to the development of small markets by giving them greater visibility, says the EU institution in its draft Regulation, a copy of which was made available to EUROPE. It will also allow non-listed entities, such as SMEs, to make information available on a voluntary basis, which will facilitate their access to capital, the Commission adds.
Supported by both investors and economic operators seeking market finance, provided that it does not create an additional administrative burden, the legislative proposal will not introduce new reporting obligations. It will build on the disclosure requirements already enshrined in EU financial legislation. This concerns 21 Regulations (CRAs, short selling, OTC derivatives, market abuse, PEPP, money market funds, MiFIR, PRIIPs...) and 16 Directives (UCITS shareholder rights, alternative investment funds, MiFID, BRRD, Solvency II...) listed in the annex of the proposal.
The aim is that this mass of information, collected by competent authorities (‘collection bodies’) at national and European level, should be centralised and presented in a format that makes it easy to compare. In this way, investors, financial analysts and intermediaries, public authorities, and civil society will have a better understanding of the capital market and will be able to make informed decisions.
The period of data retention within the platform would be 10 years, with the first year of submission set at 2024 (without retroactivity). In addition, access to ESAP will generally be free of charge, although ESMA may charge for access to ESAP for private users requiring large amounts of information or frequently updated data.
Any natural or legal person subject to a reporting obligation under European financial legislation will be able to provide - on a voluntary basis - other types of information related to sustainable finance.
The Commission estimates €16.5 million (€2.3 million for administrative costs and €14.2 million for operational costs) to complete the project over the period 2022-2027. Close to €10 million would come from the EU budget.
See the proposal for a Regulation (https://bit.ly/3oE1zVI ) and the proposals for an omnibus Directive (https://bit.ly/3kRlwr3 ) and Regulation (https://bit.ly/3nxJzwP ) amending European financial legislation as a result of the creation of ESAP. (Original version in French by Mathieu Bion and Damien Genicot)