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Objective: Convergence
Article 29 of ESMA’s founding Regulation establishes one of ESMA’s key objectives as fostering supervisory convergence and avoiding regulatory arbitrage resulting from different supervisory practices; as this has the potential to undermine not only integrity, efficiency and orderly functioning of markets but ultimately also financial stability. It therefore aims to build a level playing field by strengthening supervisory coordination and promoting supervisory convergence for the benefit of the financial markets at large, including financial institutions, other market players, investors and consumers. ESMA will also enhance its international engagement with non-EU regulators and supervisors to further improve the international consistency of regulation and effective co-operation between EU and non-EU supervisors, whether ESMA itself or the National Competent Authorities (NCAs).
Objective: Financial Consumer Protection
Ensuring the interests of investors are properly met is another important objective for ESMA. ESMA achieves this through promoting transparency, simplicity and fairness in securities markets for consumers of financial products or services. As well as its ongoing work to ensure a co-ordinated EU regulatory approach, ESMA will in 2014 particularly focus on tasks related to the Markets in Financial Instruments Regulation and the Packaged Retail Investment Products initiative.
Objective: Financial Stability
ESMA was created as part of a Europe-wide response to a financial and economic crisis that posed risks to the stability of the financial system and the functioning of the internal market. To this end ESMA will continue to strengthen its activities in analysing developments, systemic risks, and structures in the financial markets within its remit. The focus of the Authority’s work will be on financial market surveillance and economic research. In these efforts, ESMA will further intensify its co-operation with the EU Institutions, the other European Supervisory Authorities and the European Systemic Risk Board (ESRB) on a regular and ad hoc basis.
Objective: Single Rulebook
ESMA’s single rulebook work is aimed at strengthening regulation and creating a level playing field across the EU. It involves delivering technical advice on legislation to the European Commission, drafting regulatory technical standards and issuing advice and guidelines on the application of Union law.
In 2014 ESMA’s single rulebook work will be focused, amongst others, on the revision of the Markets in Financial Instruments (MiFID) and Market Abuse Directives (MAD), legislation related to European investment funds and corporate finance, and the implementation of the CRA III legislation.