Regulatory Update ESMA sector-specific principle on relocations from the UK to EU 27

13 July 2017

The European Securities and Markets Authority (ESMA) has published three Opinions setting out sector-specific principles in the areas of investment firms, investment management and secondary markets, aimed at fostering consistency in authorisation, supervision and enforcement related to the relocation of entities, activities and functions from the United Kingdom.

The Opinions, build on the General Opinion issued in May, are practical tools to support supervisory convergence in the context of requests from UK financial market participants seeking to relocate to EU27. They are addressed to National Competent Authorities (NCAs) and are relevant for market participants considering relocating. They provide guidance to NCAs aimed at ensuring a consistent interpretation of the requirements relating to authorisation, supervision and enforcement in order to avoid the development of regulatory and supervisory arbitrage risks.

We will review the Opinions and discuss with stakeholders any potential implications for the industry and will keep you appraised of developments.