It is a twice-yearly publication, informing on international technical cooperation at the Bank of Italy.
ESMA has published a Public Statement addressing investor protection concerns raised by derivatives on fractions of shares.
The statement highlights that derivatives on fractions of shares are not corporate shares, and therefore firms should not use the term fractional shares when referring to these instruments.
Additionally, in line with the obligation to make clients reasonably able to understand the nature and risks of the specific type of financial instrument, firms should make clear to the investor that they are buying a derivative instrument.
The statement also reminds firms that:
- all information provided to clients on these instruments shall be fair, clear, and not misleading and that firms must clearly disclosed all direct and indirect costs and charges relating to them;
- as derivatives, these instruments are complex products, and this is expected to result in a narrow target market of clients; and
- as derivatives are complex financial instruments, an appropriateness assessment needs to be carried out where non-advised services are provided.
ESMA has launched a consultation on amendments to its Guidelines for Trade Repositories (TRs) on position calculation under EMIR.
In the consultation, ESMA is seeking input from market participants, in particular TRs and authorities with access to EMIR data, on the extent to which consistency of position calculation can be enhanced across TRs under EMIR Refit standards regarding:
- the scope of data to be used;
- the time of calculation, and
- the calculation methodologies.
The consultation will end on 9 May 2023.
The indicators show consumers’ experience with financial services and will complement other sources of information that the EBA already uses to decide on its consumer protection priorities.
