ESMA CONSULTS ON SUITABILITY ASSESSMENTS OF DRSP MANAGEMENT BODY MEMBERS

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, today published a Consultation Paper (CP) on draft Regulatory Technical Standards (RTS) under the Markets in Financial Instruments Regulation (MiFIR) regarding suitability assessments of DRSP management body members.

ESMA proposes to introduce requirements covering the following areas:

Good repute, honesty and integrity;

Sufficient time commitment;

Knowledge, skills and and training;

Diversity; and

Record-keeping.

The CP builds on the existing ESMA Guidelines  regarding  the management body of market operators and DRSPs, taking into account different roles and functions carried out by them and the need to avoid conflicts of interest between management body members and users of the Approved Publication Arrangement (APA), Consolidated Tape Provider (CTP) or Approved Reporting Mechanism (ARM).

Next Steps

ESMA invites all stakeholders to respond to this consultation by 24 September 2021. ESMA will  finalise and submit its draft RTS to the European Commission by Q1/ 2022.