The European Securities and Markets Authority (ESMA) has issued an opinion regarding the scope of the product intervention powers under the Markets in Financial Instruments Regulation (MiFIR). These powers can be exercised by both Member State national competent authorities (NCAs) and ESMA from 3 January 2018.
In the opinion, ESMA draws the attention of the EU institutions to the consequences of the possible lack of clarity around the exclusion of UCITS management companies and Alternative Investment Fund Managers from the scope of MiFIR’s intervention powers.
At the end of the opinion ESMA states:
“ESMA believes that the EU institutions should address the risk of arbitrage between MiFID firms and fund management companies. In particular, in addition to the powers available under MiFIR, NCAs and ESMA should have the powers to apply restrictions/prohibition directly to fund management companies. This would ensure that there is a common toolkit for NCAs and ESMA across entities and instruments, thereby contributing to a level-playing field between MiFID entities and fund management companies.”
View ESMA calls for consistent application of MiFIR product intervention powers, 12 January 2017