European Commission
IFR reporting and disclosure - Commission Implementing Regulation laying down ITS published in OJ - 22 December 2021
The European Commission has published Commission Implementing Regulation (EU) 2021/2284 laying down implementing technical standards (ITS) on supervisory reporting and disclosure requirements for investment firms under the Investment Firms Regulation ((EU) 2019/2033) (IFR) in the Official Journal of the European Union (OJ).
The ITS specify templates, reporting dates and definitions relating to the supervisory reporting and disclosure requirements for investment firms under the IFR. The provisions on disclosures and reporting reflect mandates in Articles 49(2) and 54(3) respectively of the IFR.
The Implementing Regulation is based on the draft ITS that the European Banking Authority submitted to the European Commission in March 2021, having consulted the European Securities and Markets Authority. It will enter into force on 11 January 2022.
Commission Implementing Regulation (EU) 2021/2284 of 10 December 2021 laying down implementing technical standards for the application of Regulation (EU) 2019/2033 of the European Parliament and of the Council with regard to supervisory reporting and disclosures of investment firms
European Securities and Markets Authority
Reverse solicitation - ESMA publishes letter to European Commission - 3 January 2022
The European Securities and Markets Authority (ESMA) has published a letter dated 17 December 2021 from Verena Ross, ESMA’s Chair, to the European Commission (the Commission) on the Commission’s report on reverse solicitation under the Cross-Border Distribution of Funds Regulation (EU/2019/1156) (CBDF Regulation). The letter responds to the Commission’s letter to ESMA dated 24 September 2021, requesting that ESMA gather information from national competent authorities (NCAs) on the use of reverse solicitation by asset managers and the impact on passporting activities.
In the letter, ESMA highlights that almost all NCAs have no readily available information on the use of reverse solicitation via asset managers or investor associations and have been unable to provide an estimate of the share of reverse solicitation as compared to direct marketing by firms. This reflects the fact that, under EU law, asset managers are not subject to an obligation to report to their NCAs information on subscriptions stemming from reverse solicitation. Where ESMA has been able to gather information (i.e., from jurisdictions with national obligations requiring asset managers to report to their NCAs information on subscriptions resulting from reverse solicitation) it noted that the use of reverse solicitation was significant in size, for example, in Italy and Cyprus.
The letter also reports that many NCAs believe that reverse solicitation is used to circumvent the rules of the third country and EU passporting regimes. ESMA considers that this raises investor protection concerns and may create an uneven playing field between EU asset managers and non-EU asset managers operating in the EU through reverse solicitation. ESMA suggests the Commission introduce new reporting requirements relating to the use of reverse solicitation and, in the meantime, contact market participants such as asset managers, depositories and account holders for further information.
ESMA Letter: Ref: Request for support in relation to the report on reverse solicitation (ESMA34-45-1485)
European Commission Letter: Request for support in relation to article 18 of Regulation 2019/1156 (CBDF)
See the General section for an item on the FCA’s Policy Statement in relation to climate-related disclosures requirements for asset managers (and asset owners).
