16 February 2009

CESR review of supervisory powers and practices in relation to MiFID

The report gives a factual overview of the implementation of MiFID by mapping the supervisory powers, practices and sanctioning regimes of CESR Members.

The report shows that all supervisory powers concerning MiFID have been assigned throughout the CESR membership. However, certain powers have been left with national ministries, central banks or other competent authorities and have not been assigned directly to a CESR Member.

With regard to supervisory practices in authorising and supervising investment firms, some convergence can be noted on procedures and methods used by CESR Members to regularly monitor that investment firms comply with legal obligations. The MiFID review shows that a great majority of authorities do not impose additional authorisation requirements to the ones set out in MiFID on investment firms and credit institutions.

Supervisory powers and practices for regulated markets

The findings suggest that harmonisation with regard to the supervisory framework for authorities and ongoing supervision of regulated markets and multilateral trading facilities is far greater than the convergence of supervision by competent authorities of other entities, such as investment firms and credit institutions.

Nevertheless, the findings found some differences in the information collected for authorising regulated markets.

Mapping of administrative measures and criminal sanctions

There are significant differences in respect to administrative measures and criminal sanctions among CESR Members that can be imposed in cases of infringements of MiFID. The report shows a huge variance in range of administrative and criminal fines.

Press release

Report

© CESR - Committee of European Securities Regulators