On Jan. 3, EC consulted on changes re ESMA fees for repositories.
EC issued draft delegated regulation for consultation, aims to harmonize and simplify technical aspects for ESMA's collection system for fees from securitization repositories.
Follows ESMA Nov. 2018 proposed securitization repositories standards, see #49268.
Background
ESMA is responsible for registration and direct supervision of certain financial markets entities in EU, securitization repositories must pay ESMA an annual fee for this service.
Article 16(2) of the Securitization Regulation (SR Reg 2017/2402) mandates EC to adopt delegated act specifying type of fees to be charged, manner of payment etc.
Delegated regulation Reg 2020/1732 sets level of registration/extension fees, turnover on which fees to be charged, and sets level of the annual supervisory fees to ESMA.
Review concluded that lack of harmonization between these meant unnecessary complexity, and ESMA's resources not being used as efficiently as they could be.
Also the complexity of the fee funding system risks fees being calculated incorrectly.
ESMA gave technical advice on harmonization, simplification of fees for other financial market entities, also applies to securitization repositories, see #101462, #108802.
Proposed Amendments
Based on the review and advice, EC proposes to align several elements of the fees to be paid by securitization repositories with corresponding rules for other entities.
Will amend delegated regulation 2020/1732 to specify that the fees should fully cover costs, direct and indirect, of supervision; specify deadline for submission of audited accounts by securitization repositories for the calculation of annual supervisory fees.
Revenues in other currencies to be converted to euros to calculate applicable turnover.
Specify that securitization repository registered in month of December does not have to pay annual supervisory fee for year of registration; set out late payment penalty.
Remove ability for an applicant to get reimbursement if it withdraws its application.
Effectiveness
The closing date for feedback on draft amending delegated regulation is Jan. 31, 2024.
Commission adoption of new delegated regulation is planned for Q4 of 2024.
Mar. 2024 EC Adoption
On Mar. 11, 2024, EU CMSN adopted regulation (C(2024)1329) on repository fees.
Amending act aligns several elements of fees to be paid by securitization repositories to ESMA with corresponding rules in other areas in which ESMA charges fees.
Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union; it shall apply from Jan. 1, 2025.
Jun. 2024 Official Journal
On Jun. 18, 2024, EU CMSN issued final Reg 2024/1703 of Mar. 11 in Official Journal.
Regulation enters into force on 20th day following publication in the Official Journal of the European Union, Jul. 8, 2024; it shall apply from Jan. 1, 2025.
