ESMA Regulation - White Paper - ESMA Annual Report - June 26, 2012

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ESMA Annual Report
June 26, 2012

ESMA published its first annual report for 2011 on June 26, 2012, which covers the first year of ESMA's operations as an independent European Supervisory Authority. This 89 page report focuses on legislation, tasks and achievements made by ESMA since its creation on January 1, 2011. Some key areas covered in the report include:

  • European Financial Markets Legislation: MiFID, MAD and Short-Selling
  • European Investment Fund Legislation: UCITS and AIFMD
  • European Market Infrastructure Regulation (EMIR)
  • Promoting consistent application of International Financial Reporting Standards
  • Corporate Finance: Prospectus, Transparency and Takeover Bids Directive

In addition, a brief overview of ESMA's work programme for 2012 is provided, which includes key objectives and priorities. According to the report, 2012 will be the first full year of delivery against ESMA's objectives and as such, it will be a key year for ESMA due to the following challenges:

  1. The introduction of new, and the overhaul of existing, legislation will be a key challenge for ESMA. The year ahead will see the finalisation and implementation of new directives and regulations on short-selling, EMIR, and AIFMD.
  2. ESMA will continue to develop technical standards and advice to build a single rulebook for Europe. While it will provide advice and support on legislation being introduced and debated by Council and Parliament, articularly on MiFID/MiFIR, ESMA will also continue to promote supervisory convergence and work to avoid regulatory arbitrage.
  3. ESMA will fully exercise its supervisory duties for the first time as the focus for CRAs moves from registration to effective supervision.
  4. In order to enable ESMA to deliver on its demanding 2012 work programme, it will need to substantially increase its staffing and budget. Staff numbers are expected to grow from 75 in 2011 to 101 by the close of 2012, and the budget from €16.9 to €20.2 million. Funding will also be generated from CRAs’ fee contributions.

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