The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, today published a Consultation Paper (CP) on draft Regulatory Technical Standards (RTS) under the Markets in Financial Instruments Regulation (MiFIR) regarding suitability assessments of DRSP management body members.
ESMA proposes to introduce requirements covering the following areas:
- Good repute, honesty and integrity;
- Sufficient time commitment;
- Knowledge, skills and experience;
- Independence;
- Induction and training;
- Diversity; and
- Record-keeping.
The CP builds on the existing ESMA Guidelines regarding the management body of market operators and DRSPs, taking into account different roles and functions carried out by them and the need to avoid conflicts of interest between management body members and users of the Approved Publication Arrangement (APA), Consolidated Tape Provider (CTP) or Approved Reporting Mechanism (ARM).
Next Steps
ESMA invites all stakeholders to respond to this consultation by 24 September 2021. ESMA will finalise and submit its draft RTS to the European Commission by Q1/ 2022.
