ESMA issues four positive opinions on national product intervention measures

2 April 2019

The European Securities and Markets Authority (ESMA) has today issued four positive opinions on product intervention measures taken by the National Competent Authorities (NCAs) of the Netherlands, Poland and the United Kingdom. ESMA’s opinion finds that the proposed measures are justified and proportionate and that it is necessary for NCAs to take product intervention measures that are at least as stringent as ESMA’s measures.

ESMA’s has issued opinions on national product intervention measures from:

• Authority for the Financial Markets of the Netherlands (AFM) – Opinion on the proposed product intervention measure relating to binary options;
• Authority for the Financial Markets of the Netherlands (AFM) – Opinion on the proposed product intervention measures relating to contracts for differences;
• Komisja Nadzoru Finansowego of Poland (KNF) - Opinion on the proposed product intervention measure relating to binary options; and
• Financial Conduct Authority of the United Kingdom (FCA) - Opinion on the proposed product intervention measure relating to binary options.

Background

NCAs may take product intervention measures in accordance with Article 42 of Regulation (EU) No 600/2014. At least one month before a measure is intended to take effect, an NCA must notify all other NCAs and ESMA of the details of its proposed measure and the related evidence, unless there is an exceptional case where it is necessary to take urgent action.

In accordance with Article 43 of Regulation (EU) No 600/2014, ESMA performs a facilitation and coordination role in relation to such product intervention measures taken by NCAs. After receiving notification from an NCA of its proposed measure, ESMA must adopt an opinion on whether the proposed measure is justified and proportionate. If ESMA considers that the taking of a measure by other NCAs is necessary, it must state this in its opinion.