ALFI responds to the EC consultation on supervisory convergence and the single rulebook

Read the ALFI response here.

This consultation followed a review of the ESA Regulations in 2018/2019. ALFI thinks that ESMA reaches its objective to protect the public interest by contributing efficiently to the short, medium and long-term stability and effectiveness of the financial system as stated in Article 1 of the ESMA Regulation. Moreover, ESMA successfully contributes to the missions detailed in said article, including improving the functioning of the internal market, ensuring the integrity, transparency, efficiency and orderly functioning of financial markets and preventing regulatory arbitrage and promoting equal conditions of competition.

ALFI is also of the view that the powers and tools granted to ESMA allow the authority to ensure convergence in the asset management sector, which is important to ensure a level playing field across Europe. Investors benefit from a wide variety of investment products and they can rely on ESMA’s investor protection focus.

As a consequence, ALFI does not see any need to grant any additional powers to ESMA and/or further increase the supervisory convergence tools at its disposal. It is rather suggested to ensure an appropriate and efficient use of the existing powers and tools and targeted improvements based in particular on the constructive feedback received from the industry.

Finally, ALFI does not think that the single rulebook needs to be further enhanced to reach uniform application of EU law. It provides a good framework, which consists of various forms and levels (regulations, directives, implementing rules, technical standards). Targeted amendments can always be discussed along the regular review of legislative acts. ALFI does not see a need for new rules, but more guidance on the details (at level 2 or 3) would often be helpful.