Regulators

European Securities and Markets Authority (ESMA)

ESMA is an independent EU institution that helps maintain the stability of the EU financial system by strengthening investor protection and promoting the stable and or...

Forex Regulatory Tips

After verification by the staff, although the European Securities and Markets Authority ESMA does not directly supervise leveraged foreign exchange, foreign exchange traders in the EU must follow the corresponding laws and regulations formulated by ESMA, such as MiFIR and MiFID II.
EU countries include the following 27 countries:
Austria, Belgium, Bulgaria, Cyprus, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia , Spain and Sweden.
Note:
1. The UK is in the process of leaving the EU;
2. The Belgian Financial Supervisory Authority FSMA started to ban foreign exchange activities and foreign exchange dealers in August 2016.

Organization Profile

Institutional nature
Government agencies
ESMA is an independent EU authority that contributes to maintaining the stability of the EU financial system by strengthening investor protection and promoting the stability and order of financial markets. Although ESMA is independent, it has overall responsibility to the European Parliament pending a request by the Economic and Financial Affairs Committee (ECON) to appear for a formal hearing. Full accountability to the Council of the European Union and the European Commission also exists. As such, the Authority will regularly report on its activities in meetings and possibly through an annual report.
Institutional History
The establishment of the European Securities and Markets Authority ESMA is a direct result of the recommendations of the 2009 de Larosière report. The 2009 de Larosière report called for a decentralized network system - the European Financial Supervisory System (ESFS). ESMA started operations on January 1, 2011, in accordance with the creation regulations. ESMA replaces the network of EU authorities – the Committee of European Securities Regulators (CESR), which facilitates EU regulation and advises the European Commission.
Regulatory functions
ESMA achieves its mission and objectives through the following activities: 1. Assessing risks to investors, markets and financial stability 2. Developing and improving a single rulebook for EU financial markets 3. Promoting supervisory convergence 4. Directly supervising 2 objects: credit rating agencies and trade information base
In addition to promoting regulatory convergence among securities regulators, it aims to achieve this in the financial sector by working closely with other European regulators in the banking (EBA), insurance and occupational pension (EIOPA) sectors.

Regulatory Objective/Scope
ESMA has three main goals:
1. Investor protection;
2. Maintain market order;
3. Maintain financial stability
Contact
Tel: +33 1 58 36 43 21
Fax: +33 1 58 36 43 30
Email: [email protected]; [email protected]
Address:
ESMA
103 rue de Grenelle
75007 Paris, France
Mailing address:
ESMA
CS 60747
103 rue de Grenelle
75345 Paris Cedex 07, France

Regulatory Inquiries

Step 1 Directly open the list of all EU investment firms: https://www.esma.europa.eu/investment-firms
Note: This list contains all relevant information received by the competent national authorities and includes information on the services or activities for which the investment company is authorized.
Step 2 After opening the website, select the link address of the country where the investment company you want to query is located to query;

Regulatory complaints

Foreword: ESMA directly oversees only two objects: credit rating agencies and transaction databases. Therefore, ESMA only accepts complaints about these two objects, and it does not have the right to investigate foreign exchange dealers or other financial companies, or to deal with related complaints. If you need to complain to a foreign exchange dealer or other financial company, you need to complain to the complaint agency in the country where the company is located.
When you are not satisfied with your investment, you can file a complaint through the following 2 steps:
Step 1: Contact the financial company directly
When you have a complaint, the best way is to contact the financial company directly to help you resolve the issue.
You can contact them by phone, email or in person. When you do not know who is responsible for the complaint of a financial company, you can directly call the company's hotline or compliance department.
Note: EU law requires all companies to have an effective and transparent process for handling customer complaints reasonably and quickly.
Step 2: If you are not satisfied with the financial company's processing results, you can file a complaint with the country's financial grievance agency, or apply for an arbitration/intermediary program for help.
Under EU regulations, you can resolve your complaint through an Alternative Dispute Resolution (ADR) entity, which will usually respond to your complaint within 90 fills.
Cross-border complaints
If the company you are complaining against is registered in an EU member state, you will need to lodge a complaint with the non-complaint dispute resolution scheme in the country where the company is located.
Financial Dispute Resolution Network
The Financial Dispute Resolution Network of the National Out-of-Court Complaints Scheme in European Economic Area Countries (FIN-NET) aims to help consumers overcome obstacles that can arise from cross-border transactions.
Their website allows consumers to identify relevant out-of-court complaints programs in the financial services provider's country and contact the agency directly. The FIN-NET scheme also makes it possible for consumers to file cross-border complaints in the language of their financial contracts or the language in which they normally deal with financial service providers.

Example of punishment

Note: ESMA directly regulates credit rating agencies (CRAs) and transaction databases (TRs), so the penalties are also for entities related to these two objects.

FAQs

1. Can I file a complaint with ESMA for a trader in the EU?
Answer: No. The two objects directly regulated by ESMA are credit rating agencies and transaction databases. If you have a complaint about these two objects, you can file a complaint with ESMA. If you have a dispute with a foreign exchange dealer or other financial company, you need to file a complaint with the dispute resolution agency in the country where the company is located.

Related Links

Belgium Financial Services Market Authority (FSMA): https://www.fsma.be/en
Bulgarian Financial Supervisory Commission (FSC): http://www.fsc.bg/en
Czech National Bank (CNB): http://www.cnb.cz/cs/index.html

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