This action will allow ESMA and the NCAs to assess the application by firms of the MiFID II requirements on costs and charges.
The European Securities and Markets Authority
(ESMA), the EU’s securities markets regulator, is launching a common
supervisory action (CSA) with national competent authorities (NCAs) on
the application of MiFID II costs and charges disclosure rules across
the European Union (EU). The CSA will be conducted during 2022.
This action will allow ESMA and the NCAs to assess
the application by firms of the MiFID II requirements on costs and
charges. The focus of the CSA will be on information provided to retail
clients. NCAs, in particular, will review how firms ensure that these
disclosures:
- are provided to clients in a timely manner;
- are fair, clear and not misleading;
- are based on accurate data reflecting all explicit and implicit costs and charges; and
- adequately disclose inducements.
ESMA believes this initiative and the related sharing of practices
across NCAs, will help ensure consistent implementation and application
of EU rules and enhance the protection of investors in line with ESMA’s
objectives.
The CSA contributes to fulfilling ESMA’s mandate on building a common
supervisory culture among NCAs to promote sound, efficient, and
consistent supervision throughout the EU. ESMA’s promotion of
supervisory convergence is done in close cooperation with NCAs.
ESMA has published a series of Q&As on this subject, and these will serve as input to this CSA.
ESMA
© ESMA
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