European Fund Industry Regulator

European Fund Industry Regulator

The European Securities and Markets Authority (ESMA) is the independent European regulator of the fund industry.
ESMA was founded in 25/11/2010 by the European Regulation 1095/2010 establishing a European Supervisory Authority (European Securities and Markets Authority). ESMA started operation on the 1/1/2011 substituting the existing European Securities Regulators (CESR) and since then it forms part of the European System of Financial Supervision (ESFS).

The objective of ESMA is to protect the public interest by contributing to the stability and effectiveness of the financial system of European Union. Towards this objective ESMA is responsible to:
  1. keep level and effective regulation and supervision,
  2. overseeing the proper functioning of financial markets,
  3. maintain supervisory coordination,
  4. prevent regulatory arbitrage between countries, 
  5. maintain equal conditions of competition,
  6. enhance investor protection.
  7. enhancing supervisory convergence across the internal market,
  8. preventing the use of the financial system for the purposes of money laundering and terrorist financing.
ESMA in relation to Fund Management is mainly acting in relation to the following EU Legislation:
  1. Alternative Investment Managers Directive (AIFMD),
  2. Directive on Undertakings for Collective Investment in Transferable Securities (UCITS),
  3. European Venture Capital Funds Regulations (EuVeCa),
  4. European social entrepreneurship funds (EuSEF),
  5. European long-term investment funds (ELTIF),
  6. Money market funds (MMFs),
  7. PRIIPs Regulation.
On these regulations and directives ESMA has being issuing Guidelines, Recommendations, Q&Answer Documents, Technical Standards, Opinions and Reports which are directly followed by the stakeholders.

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