ESMA’s peer review, conducted in parallel with a mapping exercise, identifies good practices, which NCAs should apply when supervising investment firms and regulated markets with regard to market abuse. ESMA included in its review the supervisory practices of those 30 NCAs that have responsibility in preventing, detecting and punishing market abuse. Overall, ESMA found that a majority of NCAs had correctly implemented MAD’s provisions.
A total of 16,890 investment firms, credit institutions, and other entities providing investment services in the EEA fall under MAD and are therefore obliged to monitor, detect and report suspicious transactions to their regulator, which in turn investigate possibly abusive behaviour. These investigations vary due to the size of markets across the EU, ranging from markets with a small numbers of firms to the UK with 8,493 firms alone, Germany with 2,550, France with 953 and Austria with 934 .
Steven Maijoor, ESMA Chair, noted: “The market abuse regime in the European Union is designed to ensure that its financial markets are transparent, stable and well-functioning and is key to maintaining investor confidence in our financial markets. This review presents a good opportunity for national competent authorities to learn from each other’s experiences and where appropriate, to review and adjust their own practices to better police the regime in their own jurisdictions. This will contribute to a more consistent approach across the EU and reduce the opportunities for those who intent on profiting through their illegal behaviour.”
Full peer review
Mapping report
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