Latest news from EU institutions and bodies

European Commission Speech Brussels, 03 Jul 2024 Distinguished Guests, I am so pleased to welcome you to this event on an issue that has been the compass of my mandate and even my whole political career: tackl...

Registration now open for 11th Joint ESAs Consumer Protection Day in Budapest 03 July 2024 Investor protection Joint Committee Sustainable finance The registration for the 11th Joint Consumer Protection Day organised by the three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) on 3 October 2024 in Budapest, Hungary is now open. Interested stakeholders can register until 2 September 2024. The event aims to unite thought leaders from consumer organisations, regulatory authorities, EU institutions, academia, and key market participants from across the European Union to discuss significant issues in consumer protection within financial services.  Discussions will focus on following themes: Artificial intelligence in financial services, access to consumer centric products and services and sustainable finance (SFDR). The Joint Consumer Day is hosted by the Central Bank of Hungary (MNB – Magyar Nemzeti Bank) during Hungary's Presidency of the European Union, this year’s Consumer Protection Day will be held at the Lámfalussy Conference Centre in Budapest. Registration Interested stakeholders can register via this link no later than 2 September 2024.  Participants are encouraged to register early due to limited seating. The ESAs recommend in-person attendance to ensure optimal expert exchanges and networking opportunities.  For more information about the event, please visit the event’s page.

EBA and ESMA publish guidelines on suitability of management body members and shareholders for entities under MiCA 27 June 2024 Digital Finance and Innovation The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) today published joint guidelines on the suitability of members of the management body, and on the assessment of shareholders and members with qualifying holdings for issuers of asset reference tokens (ARTs) and crypto-asset service providers (CASPs), under the Markets in Crypto Assets regulation (MiCA). These two sets of guidelines are part of the EBA and ESMA‘s ongoing efforts to foster a transparent, secure, and well-regulated crypto-assets market, and complement the recently published governance package. The first set of guidelines covers the presence of suitable management bodies within issuers of ARTs and CASPs, contributing to increase the trust in the financial system. Having robust governance arrangements in place will foster confidence in those assets and services, supporting the development of a healthy crypto-asset ecosystem. It provides common criteria to assess the knowledge, skills, experience, reputation, honesty and integrity of members of the management body, as well as if they can commit sufficient time to perform their duties to ensure a sound management of these entities. The second set of guidelines concerns the assessment of the suitability of shareholders or members with direct or indirect qualifying holdings in a supervised entity. This assessment is a key aspect of the gatekeeping function exercised by supervisory authorities, considering the significant influence that these persons may exercise on the management of the supervised entity.  It equips competent authorities with a common methodology to assess the suitability of the shareholders and members with direct or indirect qualifying holdings for the purpose of granting authorisation as issuers of ARTs or as CASPs, and for carrying out the prudential assessment of proposed acquisitions.   More information: Cristina Bonillo Senior Communications Officerpress@esma.europa.eu 27/06/2024 ESMA75-453128700-10 Joint EBA and ESMA guidelines on suitability of management body members and shareholders for entities under MiCA 28/06/2024 ESMA75-453128700-1078 Annex I - Joint EBA and ESMA GL on the assessment of suitability MiCAR

ESMA appoints new members of its Securities and Markets Stakeholder Group 21 June 2024 About ESMA Securities and Markets Stakeholder Group The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has appointed new members of its Securities and Markets Stakeholder Group (SMSG). On 1 July 2024 the new members will start their four-year term, during which they will provide ESMA with advice on its policy work and will be consulted on technical standards and guidelines.  Verena Ross, ESMA’s Chair, said:  “Congratulations to the newly selected SMSG members. I believe that with their strong expertise, diverse professional backgrounds and broad geographical representation, we have ensured ESMA will be receiving different stakeholder views and input from across the European Union. ESMA works to enhance investor protection, build more effective and attractive capital markets in the European Union and safeguard financial stability. This is why I look forward to hearing the SMSG members’ perspectives on market developments and to receiving valuable advice on numerous files under ESMA’s remit. I would like to thank the outgoing SMSG members for their dedication to the role and their contributions during the last four years. My special gratitude goes to the SMSG Chair, Veerle Colaert, for all her support and the excellent coordination of the group. During its tenure, the outgoing SMSG gave ESMA relevant and valuable stakeholder feedback and advice on the European capital market regulatory framework.”   List of the members of the Securities and Markets Stakeholder Group The successful candidates were selected from a field of 171 eligible applicants. The individuals listed below will make up the SMSG for four years commencing on 1 July 2024. New SMSG members will hold their first meeting on 5 July 2024. Name Nationality Position Academics Barbara Alemanni Italy Full professor of financial markets and institutions, University of Genoa; Affiliate professor – financial markets and institution and Research fellow CAREFIN, Bocconi University Gabriela Ariadna Dumitrescu Romania Associate Professor of Finance, ESADE Business School Morten Kinander Norway Professor of Law, BI Norwegian Business School; Director Center for Financial Regulation, BI Norwegian Business School Giovanni Petrella Italy Full Professor of Banking, Catholic University, Milan Consumer Representatives Monica Calu Romania Member in Advisory Council at the Central Level, National Authority for Consumer Protection, Bucharest Kęstutis Kupšys Lithuania Vice President, Vartotojų Aljansas - Lithuanian Consumers Alliance Aleksandra Maczynska Poland Acting Managing Director, BETTER FINANCE Guillaume Prache France Executive President, Fédération des Associations Indépendantes de Défense des Epargnants pour la Retraite (FAIDER) - Federation of Independent Associations for Retirement Savers Agustin Reyna Belgium Director General, Bureau européen des unions de consommateurs – the European consumer organisation (BEUC) Christian Martin Stiefmueller Austria Senior Adviser, Research & Advocacy, Finance Watch Users of Financial Services Christiane Hölz Germany Lawyer, Managing Director, Deutsche Schutzvereinigung für Wertpapierbesitz e.V. (DSW) Sari Lounasmeri Finland Chief Executive Officer of Pörssisäätiö - Finnish Foundation for Share Promotion Employee Representatives Chris Vervliet Belgium Deputy Secretary & Member of Select Committee European Works Council at KBC Group, KBC Asset Management, Brussels (Belgium); member UNIEuropa Small and Medium Enterprises Andrus Alber Estonia Member of the Supervisory Council, Swedbank Investment Funds; Member of the Board, Finance Estonia Henning Bergmann Germany Chief Executive Officer of Der Mittelstandsverbund – ZGV e.V. - SME Groups Germany Nikolaos Daskalakis Greece Advisor to GSEVEE, the Greek Confederation of SMEs Ville Kajala Finland Senior Advisor, Company and Securities Law, Corporate Governance, Finland Chamber of Commerce Financial Market Participants Rosa Armesto Spain Director General, Federation of European Securities Exchanges (FESE); Lecturer, Solvay Brussels School of Economics and Management Florence Bindelle Belgium Secretary General, EuropeanIssuers Urban Funered Sweden Chief Executive Officer, Swedish Securities Markets Association; Chairman and Board Member, Swedsec Licensiering; Chairman and Board Member, International Council of Securities Associations Stephane Giordano France Head of Regulatory Strategy Team for Investment Banking Activities, Société Générale; Chairman, L'Association française des marchés financiers (AMAFI) - French financial market association Emma Lokko Ireland Head of Market Structure EMEA, Susquehanna International Group Limited Ana Martínez-Pina Spain Partner, Lawyer of Financial Regulation, Gómez-Acebo & Pombo Jacqueline Mills Belgium Managing Director, Head of Advocacy, Association for Financial Markets in Europe (AFME) Nicolas Pfaff France Deputy Chief Executive and Head of Sustainable Finance, International Capital Market Association (ICMA) Thomas Richter Germany CEO, BVI German Investment and Asset Management Association Virginie Saade France Managing Director, Head of Government and Regulatory Policy, EMEA, CITADEL Lucas Schmeddes Netherlands President & COO ICE Endex, Intercontinental Exchange Miroslav Singer Czechia Chief Economist, Director for Institutional Relationships, Generali CEE Holding; Supervisory Board Deputy Chairman, Moneta Money Bank; Economics Lecturer, Prague University of Economics and Business Tanguy van de Werve  Belgium General Director, European Fund and Asset Management Association (EFAMA)   Further information: Aleksandra Bojanić Senior Communications Officer@ press@esma.europa.eu 21/06/2024 ESMA71-545613100-2498 ESMA appoints new members of its Securities and Markets Stakeholder Group - Press Release

ESMA withdraws the CRA registration of EuroRating 19 June 2024 Credit Rating Agencies The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has withdrawn the credit rating agency (CRA) registration of EuroRating Sp. z o.o. The withdrawal decision follows the official notification to ESMA by EuroRating Sp. z o.o. on 15 April 2024 of its intention to renounce their registration under the conditions set out in Article 20(1)(a) of the CRA Regulation (CRAR). The list of registered or certified CRAs has been updated.   Further information: Sarah Edwards Senior Communications Officerpress@esma.europa.eu

ESAs propose improvements to the sustainable finance disclosure regulation 18 June 2024 Joint Committee Sustainable finance The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) today published a joint Opinion on the assessment of the Sustainable Finance Disclosure Regulation (SFDR). The ESAs call for a coherent sustainable finance framework that caters for both the green transition and enhanced consumer protection, taking into account the lessons learned from the functioning of the SFDR. The ESAs focus on ways to introduce simple and clear categories for financial products. The simplifications consist of two voluntary product categories, “sustainable” and “transition”, that financial market participants should use to ensure consumers understand the purpose of the products. The rules for the categories should have a clear objective and criteria to reduce greenwashing risks.  The ESAs recommend that the European Commission consider the introduction of a sustainability indicator that would grade financial products such as investment funds, life insurance and pension products. In addition, the Opinion also covers the following areas: appropriate disclosures for products outside the two categories to reduce greenwashing, improvements to the definition of sustainable investments, simplification to the way disclosures are presented to investors, other technical suggestions including on which products should fall under the scope of SFDR and on how to improve disclosures regarding the negative impact of investments on people and the environment, and the need for consumer testing before putting forward any policy proposals to review the SFDR, such as to introduce a categorisation system and/or an indicator. Background The ESAs deliver this Opinion on their own initiative. The Opinion is published in the context of a comprehensive review of the SFDR framework by the European Commission, which includes the SFDR regulation and Delegated Regulation. Going forward, the ESAs are ready to support the European Commission in future policy considerations on any review of the SFDR framework.   Further information: Dan Nacu-Manole Communications Officerpress@esma.europa.eu 18/06/2024 JC 2024 06 Joint ESAs Opinion on the assessment of the Sustainable Finance Disclosure Regulation (SFDR)

ESAs Board of Appeal renews its President's term and elects a Vice-President 14 June 2024 Board of Appeal During the Board of Appeal Annual Meeting on 13 June 2024, the three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) renewed the President and elected the Vice-President of the Board of Appeal, for a term of 2.5 years. Michele Siri, Professor of Insurance and Financial Markets Law, University of Genoa, Italy, was renewed as Board of Appeal’s President and Margarida Lima Rego, Associate Professor and Vice-Dean at NOVA School of Law, NOVA University, Portugal, was appointed as Board of Appeal’s Vice-President. The President and Vice-President are designated among the Board of Appeal’s members. The President’s role is to direct the business and the administration of the Board of Appeal, while the Vice-President will perform the functions of the President in the event of the incapacity of the President or other exceptional reasons. The Board of Appeal is composed of six members and six alternates, appointed by the ESAs. The members are individuals with a proven track record of professional experience in the fields of banking, insurance, occupational pensions and securities markets or other financial services, and with the necessary legal expertise to provide expert legal advice in relation to the activities of the Authorities. The Board of Appeal is a joint body of the ESAs, introduced to protect effectively the rights of parties affected by decisions adopted by the ESAs. It is an independent and impartial body, responsible for deciding on appeals against certain ESA decisions.  More information on the Board of Appeal is available here.

ESMA in 2023 - Focus on investor protection, risk monitoring and supervision 14 June 2024 About ESMA Board of Supervisors Management Board Press Releases The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its Annual Report for 2023. It sets out the key achievements of the authority in the first year of implementing its new 5-year strategy, delivering on the mission of enhancing investor protection and promoting stable and orderly financial markets in the European Union (EU). Verena Ross, Chair of ESMA, said:  “Retail investors are at the core of our strategy through the key role they play in financial markets. In 2023 we saw for the first time that the average cost of investing in certain funds had declined year on year, but there are still significant differences across the Union. We continued our mission to protect investors, including through a mystery shopping exercise on costs and charges under MiFID and targeted warnings about the risks of crypto assets.  As geopolitical tensions and macro-economic developments continued to impact European financial markets in 2023, vigilance and proactive measures by supervisory authorities remained fundamental. ESMA was again at the forefront of coordinating the actions and sharing information between national supervisors in the EU, ensuring common approaches to any crisis responses. I would like to thank my colleagues in the ESMA Board of Supervisors and Management Board for their continued support.” Natasha Cazenave, Executive Director of ESMA, said: “Consistent with our strategic priority to strengthen supervision of EU financial markets we continued to reinforce and streamline the framework we use to identify supervisory risks, not just within ESMA but also with national supervisors.  As ESMA grows and evolves in a complex environment with rapid technological innovation and challenging economic conditions, we focus on retaining a strong culture internally and stay rooted in a clear set of values. This allows us to have the necessary agility needed to continue delivering on our strategic priorities. I would like to warmly thank all the staff for their commitment and enthusiasm in delivering on ESMA’s mission.” ESMA's key achievements in 2023  Throughout the year, ESMA actively monitored risks and resilience of financial markets, contributed to completing the single rulebook and supported supervisory convergence notably through extensive work in the digital finance space.  ESMA’s key accomplishments during 2023 include: Exploring new areas of regulation and working closely with EBA and EIOPA in preparation for the implementation of Digital Operational Resilience Act (DORA). Preparing for Markets in Crypto-Assets Regulation (MiCA) implementation and together with the NCAs fostering convergent authorisation and supervision approaches, providing guidance to market participants, conducting consultations on detailed rules, and collaborating with international bodies on crypto-asset regulation. Enhancing supervisory convergence through peer reviews on the supervision of central counterparties (CCPs) and central securities depositories (CSDs), identifying areas for improvement and issuing recommendations to ensure consistent supervision across the EU. Monitoring retail investment markets and reporting on the costs and performance of retail investment products, highlighting cost reductions and variations across products and Member States, and recommending that investors carefully evaluate costs and diversify investments. Enhancing sustainability disclosures through active participation in the development and application of European Sustainability Reporting Standards (ESRS) and in the IOSCO endorsement of the IFRS Sustainability Disclosure Standards.  Launching a new data strategy for 2023-2028, aiming to leverage technology and data to improve market supervision and investor protection. The strategy outlines six key objectives to enhance data utilization, reduce reporting burden and promote data-driven supervision. Assessing greenwashing through a progress report on greenwashing risks and supervision, setting out a definition of greenwashing agreed with EBA and EIOPA, identifying material risks across the sustainable investment value chain and outlining preliminary remediation actions.  These achievements reflect ESMA's commitment to navigating the evolving financial landscape, ensuring effective regulation and supervision, and protecting investors in the EU.   Further information: Solveig Kleiveland Communications Team Leaderpress@esma.europa.eu 14/06/2024 ESMA22-50751485-1453 2023 Annual Report 14/06/2024 ESMA71-545613100-2542 ESMA in 2023 - Focus on investor protection, risk monitoring and supervision - Press Release