The European Securities and Markets Authority (ESMA) is a body of the European Union whose objective is protect investors and ensure the integrity, stability and smooth functioning of financial markets. This authority has jurisdiction within different branches within the regulated markets.
ESMA Guidelines
ESMA has developed different guidelines: some related to the market abuse, others focused on investment services companies or in relation to the compliance with MiFID requirements, insisting on certain important aspects and, with this, helping companies to comply with regulatory provisions. ESMA guidelines come into force two months after being published in all the official languages of the European Union.
Within the financial regulatory sector it is very important for the planning of organizations to be up to date on the updates to applicable regulations since it is a sector in constant evolution.
Latest changes to ESMA guidelines
During this year, the publication of the final Guidelines on the compliance function (Compliance) of MiFID II was carried out, which establishes changes related to three aspects:
to) Compliance tasks, such as evaluating risks on a regular basis by implementing update programs, supervising compliance with policies and protocols and carrying out mandatory reports for each business area,
b) The compliance body, regarding the adequacy of sufficient resources, on the minimum technical competence that the person responsible for the Compliance function must have and availability of exclusive personnel for compliance with the MiFID II regulations; However, the possibility of outsourcing this function is not excluded as long as certain minimum requirements are met and, finally,
c) The competent authorities to supervise the Compliance function, where it leaves open the possibility that each Member State can supervise said function.
As established by the ESMA guidelines, these changes They apply to:
- Investment services companies.
- Credit institutions.
- UCITS investment funds.
- Alternative investment funds (FIA).
- Competent authorities in each country that supervise that these standards are implemented.
Therefore, all these subjects listed They must comply with the provisions of the guidelines regarding the function of Compliance.
