Delegation Agreements
Working towards increased supervisory convergence is beneficial to both EU supervisors and financial market participants. A tool available to achieve this is the delegation of tasks and responsibilities from one National Competent Authority (NCA) to another or to ESMA.
The purpose of such a delegation is to reduce the duplication of supervisory tasks, foster cooperation, streamline the supervisory process, as well as reduce the burden imposed on financial market participants.
When can such a delegation take place?
Article 28 of the ESMA Regulation allows an NCA to delegate tasks and responsibilities under the legal acts within ESMA’s remit to another NCA or to ESMA, provided that the following conditions are met:
- the delegate authority gives its consent;
- where responsibilities are delegated, the delegation results in the reallocation of competences between the delegating and the delegate authorities;
- any enforcement, administrative or judicial procedure relating to the delegated responsibilities, if any, is governed by the national law of the delegate authority;
- any potential arrangements set out by Member States concerning the delegation of responsibilities by NCAs are complied with; and,
- in case of delegation of tasks and responsibilities between NCAs, ESMA is informed of the proposed delegation agreement at least one month before the agreement is entered into.
What is ESMA's role?
After being informed of a proposed delegation agreement as indicated in point (v) above, ESMA has the option to issue an opinion thereon within one month (calculated in accordance with Regulation (EEC, Euratom) No 1182/71) pursuant to Article 28(4) of the ESMA Regulation.
Once concluded, delegation agreements are published on ESMA’s website in order to ensure that all parties concerned are informed appropriately.
Concluded delegation agreements between NCAs
| Delegating authority | Delegate authority | Subject matter of the delegation | Start date | End date |
|---|---|---|---|---|
| Finansinspektionen (SE) | Finanstilsynet (DK) | A number of tasks and responsibilities concerning transaction reporting under Article 25 of MiFID I | 6 June 2017 | 3 January 2018 |
| Finansinspektionen (SE) | Finanssivalvonta (FI) | A number of tasks and responsibilities concerning transaction reporting under Article 25 of MiFID I | 22 August 2017 | 3 January 2018 |
Delegation agreements between ESMA and NCAs
ESMA concluded 30 delegation agreements delegating to ESMA tasks regarding the provision of a central facility in relation to instrument and trading data and the calculation of transparency and liquidity thresholds under Regulation (EU) No 600/2014 and single access point to trade repositories data under Regulation (EU) No 648/2012. Specific overview of these delegation agreements are detailed in the Overview document.
The delegation agreements are all substantially identical, the difference only being the name of the authority that concluded the delegation agreement, the individual contact point at that authority and the individual financial contribution of that authority.
Against this background, we publish a sample of the delegation agreement and its Annexes