Brexit uncertainty hangs over new ESMA powers

Newly granted powers in 2020

Uncertainty over the outcome of Brexit negotiations may impact new powers granted to the pan-European regulator ESMA, which has laid out its plans to ensure an EU-27-wide approach to handling the fallout of the UK’s departure from the European Union.

In its 2020 Work Programme published on Tuesday (1 October), ESMA said that Brexit will "have a significant impact upon the EU's financial markets" and it may therefore need to "adapt some of its activities in 2020 to new developments regarding Brexit". ESMA reveals plans to harmonise performance fee regulation As a result of a joint decision of European regulatory bodies, from next year ESMA will have a raft of new powers including broader use of direct supervision of member states, investor protection, relations with third countries and sustainability. However, the regulator warn...