2 February 2022
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, today publishes a Supervisory Briefing to ensure convergence across the European Union (EU) in the supervision of firms using tied agents, in particular those based outside the EU.
The supervisory briefing sets out ESMA and National Competent Authorities’ (NCAs) common understanding on the supervision of firms using tied agents to provide investment services and/or activities. ESMA’s monitoring of the activities of market participants from the United Kingdom (UK) in the EU has shown that such a briefing will contribute to the development of a convergent EU supervisory culture. It will also foster improved investor protection.
This supervisory briefing covers the following aspects:
- The supervisory expectations when firms appoint tied agents, and
- The supervisory expectations on firms using tied agents in their on-going activities.
It provides indications to market participants of compliant implementation of the MiFID II provisions relating to tied agents. Specific focus is given to cases where tied agents are legal persons and to cases where the tied agents are controlled by or have close links to other entities, including third-country entities.