On 6 February 2019, the European Securities and Markets Authority (ESMA) published a MiFID II supervisory briefing on the supervision of non-EU branches of EU firms providing investment services and activities.
The supervisory briefing is aimed at Member State competent authorities and also gives market participants indications of compliant implementation of the MiFID II provisions and of the recommendations expressed in the European Securities and Markets Authority opinion to support supervisory convergence in the area of investment firms in the context of the UK withdrawing from the EU.
The supervisory briefing covers:
- supervisory expectations in relation to the authorisation of investment firms. In particular, the supervisory briefing covers one of the main concerns in the Brexit related opinions the European Supervisory Authorities have published which relate to the possibility that firms relocating into the EU from the UK would be managed as empty shells or letter box entities;
- ongoing activities of non-EU branches including reporting and collection of information; and
- supervisory activity and cooperation with non-EU competent authorities.