The European Securities and Markets Authority has launched a consultation on proposed draft Technical Standards on the provision of investment services and activities in the EU by third-country firms under the Markets in Financial Instruments package. The consultation closes on March 31, 2020 and ESMA intends to submit the final draft Technical Standards to the European Commission in Q3 2020.

The provisions in the Markets in Financial Instruments Directive and Markets in Financial Instruments Regulation on third-country firms were recently amended. Among other things, the changes require third-country firms providing services to all types of clients to provide ESMA with further information. In addition, ESMA has increased powers over third-country firms providing services to eligible counterparties and per se professional clients, such as the ability to conduct on-site inspections and impose product restrictions or prohibitions.

ESMA's consultation paper covers the proposed:

• draft Regulatory Technical Standards on the information for registration of third-country firms and the information to be reported annually by third-country firms registered with ESMA;
• draft Implementing Technical Standards on the format of applications for registration of third-country firms and the format of the information to be reported annually; and
• draft ITS on the format of the information to be reported annually to national regulators by branches of third-country firms.

View the consultation paper.

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