On 10 March 2022, the European Commission adopted a Delegated Regulation supplementing the Markets in Financial Instruments Regulation (MiFIR) by specifying fees relating to the supervision by the European Securities and Markets Authority (ESMA) of data reporting service providers (DRSPs).

As provided in Article 38n(1) of MiFIR, ESMA is to charge fees to DRSPs and those fees have to fully cover ESMA’s necessary expenditure relating to the authorisation and supervision of DRSPs. The amount of a fee charged to a DRSP has to be proportionate to the DRSP’s turnover. Those fees should also cover the reimbursement of any costs that the Member State competent authority incurs as a result of delegation from ESMA under Article 38o of MiFIR.

The power to adopt a delegated act on fees is provided in Article 38n(3) of MiFIR. According to that provision, the Commission is empowered to adopt a Delegated Regulation to specify the type of fees, the matters for which fees are due, the amount of the fees and the manner in which they are to be paid.

The Delegated Regulation comprises of:

  • Article 1 – relevant definitions.
  • Articles 2 to 8 – provisions on fees.
  • Articles 9 to 11 – final provisions. The articles contain transitional provisions including the fee system for 2022, the methodology for the collection of fees for 2023 and the entry into force.

The Delegated Regulation enters into force and applies on the third day following that of its publication in the Official Journal of the European Union.

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