The European Securities and Markets Authority (ESMA) has published a consultation paper containing draft guidelines on specific notions under MiFID II related to the management body of market operators and data reporting services providers.
Articles 45 and 63 of MiFID II set requirements for the management body of market operators and Data Reporting Services Providers (DRSPs) respectively. Article 45(9) of MiFID II mandates ESMA to issue guidelines on the specific notions of “sufficient time commitment”, “adequate collective knowledge, skills and experience”, “honesty, integrity and independence of mind”, “adequate human and financial resources devoted to the induction and training of members” and “diversity” in the context of the management body of a market operator. Article 63(2) of MiFID II requires, more generally, that ESMA shall develop guidelines for the assessment of the suitability of the members of the management body of DRSPs. Article 63(1) references most of the concepts outlined under Article 45 of MiFID II such as the existence of sufficient knowledge, skills and experience from the members of the management body or the commitment of sufficient time.
Section 2 of the consultation paper contains information on the regulatory background of the above requirements, while section 3 describes the differences between the mandate for market operators and data reporting services providers. The proposed guidelines are set out in Annex V.
The deadline for comments on the consultation paper is 5 January 2017.
ESMA will consider the responses received to the consultation paper with a view to finalising the guidelines and publishing a final report in the first half of 2017.
View ESMA consults on requirements for the management of trading venues and reporting services providers, 5 October 2016