The report highlights the increased use of transaction data by EU financial regulatory authorities in their day-to-day supervision and identifies significant quality improvements following a new approach to data monitoring. In addition, it sets out how ESMA, together with the National Competent Authorities (NCAs), the European Central Bank (ECB) and the European Systemic Risk Board (ESRB), has incorporated key insights from its data monitoring in several internal workstreams.
The new framework, adopted in 2022, takes a more data-driven and outcome-focused approach to data monitoring and to collaborating with the NCAs on data quality issues under EMIR and SFTR.
Specifically, it consists of two new elements:
- a centralised data quality dashboard with EU-wide indicators covering the most fundamental data quality aspects under EMIR;
- a data sharing framework that enables relevant authorities to follow up with counterparties when potentially significant data quality issues are detected.
In order to protect the integrity of the market and to promote trust, it is important to ensure that the management or administrative organ of a credit servicer, as a whole, has sufficiently good repute and adequate knowledge and experience to conduct the business in a competent and responsible manner.
The Guidelines specify the criteria for the assessment of the organs’ collective knowledge and experience, which will be performed based on the individual members assessment by credit servicers, taking into account the principle of proportionality.
The Guidelines set out the main requirements of the credit servicers assessment process, including the good repute, and specify when such an assessment has to be performed.
Where short comings are identified, the credit servicer must take appropriate corrective measures, including e.g. to provide induction and training or to replace members of the management body.
The consultation will end on 19 July 2023.
