CESR first Consultation on Draft Advice on New Investment Services Directive

17 June 2004




CESR publishes its first consultation paper on its draft advice to the European Commission on technical measures to implement the proposed Markets in Financial Instruments Directive (MIFID) which revises the existing ISD. The draft advice covers among other organizational requirements for intermediaries, conduct of business obligations and order handling rules, pre- and post-trade transparency obligations, and cooperation between the competent authorities.

CESR’s draft advice is structured into three sections relating to the regulation of intermediaries, markets and co-operation and enforcement issues:

  • the advice on Intermediaries covers among others the provisional mandates regarding organisational requirements for intermediaries, including internal compliance and control;
  • the advice on Markets covers among others the mandates on pre and post trade transparency information with the exception of the so called quote disclosure for systematic internalisers;
  • CESR’s advice on co-operation and enforcement covers the provisional mandates regarding transaction reporting, co-operation between competent authorities and exchange of information.

    CESR has established three new expert groups being established by CESR to respond to the provisional mandates for technical advice on the Financial Instruments Markets Directive. The Expert Groups cover:

  • market issues;
  • ‘intermediaries’ issues, and
  • the third focuses on co-operation and enforcement issues.

    A steering group has also been established to consider horizontal issues and to ensure overall consistency in the advice prepared by each expert group. The group consists of the three chairmen of the experts groups and chaired by CESR’s Chairman, Arthur Docters Van Leeuwen.

    A consultative Working Group of market participants has also been appointed to provide technical advice. The market participants are experts drawn from across the European Markets. They are not intended to represent national or a specific firms’ interest and do not replace the important process of full consultation with all market participants.

    Comments are requested by 17 September from both market participants and, in particular, from retail investors.

    A public hearing will be held in Paris on 8 and 9 July.

    Press release
    Consultation paper
    Agenda for the Open Hearing on Intermediaries and Markets
    Agenda for the Open Hearing on Co-operation and Enforcement

    © CESR - Committee of European Securities Regulators