The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, today launches a consultation on specific aspects of the procedural rules for imposing fines and penalties on Data Reporting Services Providers (DRSPs) under ESMA’s direct supervision.
The amended Markets in Financial Instruments Regulation (MiFIR) contains detailed rules regarding penalties for DRSPs. ESMA’s objectives for this consultation are to gather feedback on specific aspects of these rules, such as the:
- right to be heard by the Independent Investigating Officer (IIO);
- content of the file to be submitted by the IIO;
- access to the file;
- procedure for imposing penalties;
- adoption of interim decisions; and
- limitation periods for the imposition as well as enforcement of penalties, including their collection
The Consultation Paper sets out ESMA’s proposals for a delegated act to be adopted by the Commission which will clarify relevant aspects of fines and penalties for DRSPs. These proposals leverage on the existing enforcement framework regarding Trade Repositories and Credit Rating Agencies as well as on the experience gained in its implementation in the last years.
Next steps
The closing date for responses is 23 January 2021. ESMA will consider the responses to this consultation in providing technical advice to the Commission by end of Q1 2021.
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