The European Securities and Markets Authority (ESMA) has published today its 2019 Supervisory Convergence Work Programme (SCWP), which sets out ESMA’s work streams to promote sound, efficient and consistent supervision across the European Union (EU).
For 2019, the following priorities for supervisory convergence were identified:
- Ensuring supervisory convergence in the context of the UK’s decision to withdraw from the EU;
- Making data and its use more robust and consistent by developing and further clarifying reporting methodologies and providing guidance to ensure complete and high-quality data;
- Driving forward consistency in the application of the Markets in Financial Instruments Directive and Regulation (MiFID II/MiFIR) and reaching a common understanding on arising supervisory challenges;
- Safeguarding the free movement of services in the EU through adequate investor protection in the context of cross-border provision of services; and
- Fostering supervisory convergence in the field of financial innovation.
The SCWP 2019 sets priorities that will drive ESMA’s convergence agenda in the year ahead and foster coordinated action by national competent authorities (NCAs). This year’s priorities build closely on those of 2018, reflecting the progress achieved and highlighting new areas of attention. They take into account various factors, including the market environment, legislative and regulatory developments, and the NCAs’ supervisory priorities.
The implementation of the SCWP will be closely monitored and priorities may be readjusted depending on possible changes in the EU environment in 2019.
Through its supervisory convergence activities, ESMA promotes a consistent and effective implementation and application of EU rules and the use of similar supervisory approaches for similar risks. The overall goal is to strive for comparable regulatory and supervisory outcomes to ensure a level playing field of high-quality regulation and supervision without regulatory arbitrage or a race to the bottom between Member States. In the interest of the Single Market and the Capital Markets Union (CMU), ESMA fosters a common understanding of EU regulatory requirements and their convergent application by NCAs in their authorisation, supervision and enforcement activities.