On 27 January, FIA responded to ESMA’s consultation on the active account requirement (AAR) introduced under the revised European Market Infrastructure Regulation (EMIR 3.0). FIA expresses its gratitude to ESMA for the swift provision of the consultation paper, acknowledging the valuable background it offers to market participants on several important points.
In the response, FIA strongly recommends the AAR approach follows the renewed ambitions of the EU competitiveness and burden-reduction agenda. The response notes that the proposed reporting requirements are contrary to the objectives of the European Commission in reducing the reporting burden and ensuring EU firms' competitiveness.
FIA suggests alternative proposals and recommends ESMA continues to engage with the industry to ensure a reporting regime that is fit for purpose to avoid complexity and cost for EU participants.
In other areas, FIA welcomes ESMA's approach to groups and understands that to mean that one entity in the group may fulfil the AAR. FIA recommends excluding clients from the stress-testing obligation altogether, noting that EU CCPs should play a greater role in the certification process to facilitate a less burdensome process overall.
FIA appreciates ESMA listening to industry concerns about products with limited liquidity.
Read the response in full.
