Technical Advice on possible delegated acts on criteria and factors for intervention powers concerning structured deposits

Status: Final and translated into the EU official languages

In accordance with the Markets in Financial Instruments Regulation (MiFIR), the EBA is tasked with monitoring the market for structured deposits across the European Union. In its paper, the EBA proposes a set of criteria and factors and includes explanatory notes to provide the rationale for each deviation from the criteria published by ESMA. The EBA considered that some of those criteria were not applicable to structured deposits, while others needed to be adapted and in some cases, new criteria had to be introduced, so as to take into account characteristics that are specific to structured deposits.

EBA issues final technical advice on criteria and factors for intervention on structured deposits under MiFIR

EBA issues final technical advice on criteria and factors for intervention on structured deposits under MiFIR

11 December 2014

The European Banking Authority (EBA) published today its final technical advice to the Commission laying out criteria and factors for exercising intervention powers on structured deposits. This final technical advice, which has been developed in accordance with the Markets in Financial Instruments Regulation (MiFIR) requiring the EBA to monitor the market for structured deposits, takes into consideration, where appropriate, comments received during a public consultation earlier this year.

The final technical advice follows a request the EBA received from the European Commission in May 2014. The request asked the EBA to specify the criteria and factors that the EBA and competent authorities should take into account when determining whether there is a significant investor protection concern with regard to structured deposits or a threat to the orderly functioning and integrity of financial markets.

The Markets in Financial Instruments Regulation (MiFIR) established frameworks for intervention powers for structured deposits, which were developed by the EBA, and for financial instruments, which were developed by the European Securities and Markets Authority (ESMA). The two authorities closely liaised and aligned responses to their respective requests for technical advice.    

In line with MiFIR provisions, the EBA will now prepare a methodology to fulfil its additional mandate of monitoring the market for structured deposits distributed and sold in the European Union. 

Legal basis and next steps

The EBA has developed this final technical advice in accordance with Article 41 and 42 of Regulation the MiFIR. The final technical advice has been sent today to the European Commission.

Notes to editors

The work of the EBA for consumers of financial products and services consists in promoting a transparent, simple and fair internal market. In particular, the EBA seeks to foster consumer protection in financial services across the EU by identifying and addressing detriment consumers may experience, or are at risk of experiencing, in their dealings with financial institutions.

 

Press contacts:

Franca Rosa Congiu

E-mail: press@eba.europa.eu - Tel: +44 (0) 207 382 1772