ESMA Consults On Draft Guidelines On The Internal Control Systems Framework For Some Of Its Supervised Entities

QuickTake

On 19 December 2024 the European Securities and Markets Aut hority (ESMA) published a consultation paper on draft guidelines related to the internal control systems (ICS) framework of some of its supervised entities – specifically for benchmark administrators (BAs) and market transparency infrastructure provider (MTIPs) the latter being comprised of trade repositories (TRs), data reporting services providers (DRSPs) and securitisation repositories (SRs).

The proposed draft guidelines build on ESMA's existing Internal Control Guidelines currently in place for credit rating agencies (CRAs) and propose to extend those regulatory principles and supervisory expectations to the aforementioned body of BAs and MTIPs when operating in the EU. This extension means that the existing guideline would be replaced by this new comprehensive guideline proposed in the consultation paper and the draft guidelines to form one central set of rules applicable to all BAs,