The ACI Financial Markets Association (ACI FMA), Association for Financial Markets in Europe (AFME), Alternative Investment Management Association (AIMA), European Association of Co-operative Banks (EACB), European Association of Public Banks (EAPB), European Banking Federation (EBF), European Fund and Asset Management Association (EFAMA), European Savings and Retail Banking Group (ESBG), Futures Industry Association (FIA), International Swaps and Derivatives Association (ISDA), International Capital Market Association (ICMA), Managed Funds Association (MFA), hereafter referred to as ‘The Associations’ are writing to you regarding the application of annual best execution reports in accordance with RTS 28 on 30 April 2024.

Best Execution reports under RTS 28
The ACI Financial Markets Association (ACI FMA), Association for Financial Markets in Europe (AFME), Alternative Investment Management Association (AIMA), European Association of Co-operative Banks (EACB), European Association of Public Banks (EAPB), European Banking Federation (EBF), European Fund and Asset Management Association (EFAMA), European Savings and Retail Banking Group (ESBG), Futures Industry Association (FIA), International Swaps and Derivatives Association (ISDA), International Capital Market Association (ICMA), Managed Funds Association (MFA), hereafter referred to as ‘The Associations’ are writing to you regarding the application of annual best execution reports in accordance with RTS 28 on 30 April 2024.

The MiFIR/D Review agreement between the European Parliament and the Council of 16 January 2024 includes the deletion of MiFID Article 27(6), the legal basis for RTS 28 annual best execution reports. Given MiFID is a directive which requires transposition into national law, which will not be finalised prior to the 30 April due date for best execution reports, firms would need to produce best execution reports at least one more time before this requirement is permanently deleted.

In the spirit of the burden reduction agenda and in consideration of the limited benefit of RTS 28 reports on investor protection, we kindly ask ESMA and NCAs to address this timing gap issue by publishing a statement, clarifying that NCAs do not prioritise supervisory actions with respect to firms not producing RTS 28 going forward. We would also like to stress that we appreciate the ESMA statement of December 2022 in relation to RTS 27 quarterly best execution reports....

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