BREXIT
ESMA Publishes Opinions Supporting Supervisory Convergence
Further to its cross-sectoral opinion in May, ESMA has issued sector-specific opinions on the supervisory approach to Brexit-related relocations of MiFID entities, funds and fund management companies.
The opinions are aimed at ensuring a consistent interpretation of the requirements relating to authorisation, supervision and enforcement, to avoid regulatory and supervisory arbitrage.
ESMA stresses the need for local substance (including appropriate human and technical resources and adequate governance and internal controls). Also, regulators should consider which functions can be outsourced to a third country without impacting the substance or independence of firms. ESMA also asks regulators to scrutinize directors with multiple board appointments to ensure they meet their regulatory obligations.
Read the Opinion on investment firms.
Read the Opinion on investment management.
Read the Opinion on secondary markets.
Read the Dechert Newsflash on this topic.