ESMA tightens the rules for asset managers

The EU’s securities markets regulator has published new guidance for asset managers to reduce the risk of regulatory arbitrage and ensure equal levels of investor protection throughout Europe.

The European Securities and Markets Authority’s (ESMA) new supervisory briefing on the supervision by National Competent Authorities (NCAs) takes a deep dive into the costs applicable to Undertakings for the Collective Investment in Transferable Securities (UCITS) and Alternative Investment Funds (AIFs). This briefing comes in response to the need to improve convergence across NCAs in the approach to undue costs.

“One of the key factors to mobilising investor participation in capital markets is to ensure that their trust in financial markets is improved and costs associated with buying financial products are reduced,” said Steven Maijoor, chair at ESMA. “It is part of our Strategic Orientation for 2020-2022 to actively promote the development of a large retail investor base to develop capital markets and to ensure long term financial planning.

“Ensuring greater convergence in the supervision of costs is an integral part of our broader efforts on the cost of retail investment products.”

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