European Securities and Markets Authority Regulation
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The European Securities and Markets Authority Regulation (Regulation (EU) No 1095/2010) is a piece of EU legislation that establishes the European Securities and Markets Authority (ESMA) and sets out its tasks, powers, and governance structure. It serves as the legal basis for the functioning and responsibilities of the ESMA within the EU.
Establishment of the ESMA: The regulation establishes the ESMA as an independent EU regulatory authority responsible for the regulation and supervision of securities markets and financial instruments within the EU. The ESMA works alongside national competent authorities to ensure consistent application of EU regulations and standards.
Powers and tasks of the ESMA: The regulation outlines the powers and tasks of the ESMA. It grants the ESMA the authority to develop technical standards, guidelines, and recommendations in various areas, including investor protection, transparency, and market integrity. The ESMA also has powers to conduct investigations, impose sanctions, and coordinate actions across member states.
Binding technical standards: The regulation empowers the ESMA to develop and implement binding technical standards for the consistent application of EU regulations. These standards provide detailed rules and specifications on various aspects of financial regulation, including reporting requirements, risk management, and product governance.
Regulatory cooperation and convergence: The ESMA Regulation emphasises the importance of regulatory cooperation and convergence among member states. The ESMA facilitates information exchange, harmonisation of supervisory practices, and coordination among national competent authorities. It promotes the convergence of regulatory standards and supervisory approaches across the EU.
Investor protection and market integrity: The regulation assigns the ESMA responsibilities for enhancing investor protection and promoting market integrity. The ESMA develops guidelines and recommendations to improve transparency, fairness, and efficiency in the operation of securities markets. It works to ensure a level playing field for market participants and to prevent market abuse.
Governance and accountability: The regulation establishes the governance and accountability framework for the ESMA. It defines the structure of the ESMA, including its management board, administrative procedures, and decision-making processes. The ESMA is accountable to the European Parliament, the Council of the European Union, and the European Commission.
The ESMA Regulation forms the basis for ESMA's role as an independent regulatory authority within the EU. It provides ESMA with the necessary powers and mandates to promote investor protection, market integrity, and regulatory harmonisation in the securities and financial instruments markets across the EU.
Establishment of the ESMA: The regulation establishes the ESMA as an independent EU regulatory authority responsible for the regulation and supervision of securities markets and financial instruments within the EU. The ESMA works alongside national competent authorities to ensure consistent application of EU regulations and standards.
Powers and tasks of the ESMA: The regulation outlines the powers and tasks of the ESMA. It grants the ESMA the authority to develop technical standards, guidelines, and recommendations in various areas, including investor protection, transparency, and market integrity. The ESMA also has powers to conduct investigations, impose sanctions, and coordinate actions across member states.
Binding technical standards: The regulation empowers the ESMA to develop and implement binding technical standards for the consistent application of EU regulations. These standards provide detailed rules and specifications on various aspects of financial regulation, including reporting requirements, risk management, and product governance.
Regulatory cooperation and convergence: The ESMA Regulation emphasises the importance of regulatory cooperation and convergence among member states. The ESMA facilitates information exchange, harmonisation of supervisory practices, and coordination among national competent authorities. It promotes the convergence of regulatory standards and supervisory approaches across the EU.
Investor protection and market integrity: The regulation assigns the ESMA responsibilities for enhancing investor protection and promoting market integrity. The ESMA develops guidelines and recommendations to improve transparency, fairness, and efficiency in the operation of securities markets. It works to ensure a level playing field for market participants and to prevent market abuse.
Governance and accountability: The regulation establishes the governance and accountability framework for the ESMA. It defines the structure of the ESMA, including its management board, administrative procedures, and decision-making processes. The ESMA is accountable to the European Parliament, the Council of the European Union, and the European Commission.
The ESMA Regulation forms the basis for ESMA's role as an independent regulatory authority within the EU. It provides ESMA with the necessary powers and mandates to promote investor protection, market integrity, and regulatory harmonisation in the securities and financial instruments markets across the EU.
