The European Union’s (EU) securities markets regulator has published a call for evidence on digital finance and will use the feedback as part of its technical advice to the European Commission.
The European Securities and Markets Authority (ESMA) said digital transformation and the application of innovative technologies bring a host of opportunities, including better financial services to a wider range of businesses and investors, but come with risks, such as cyber security and regulatory challenges.
ESMA’s advice to the European Commission (EC) will assist them to address these challenges and propose, where relevant, changes to the existing legislative framework by mid-2022.
ESMA is requesting information on more fragmented or non-integrated value chains, arising as a result of financial firms increasingly relying on third parties for the delivery of their services and of technology companies entering financial services.
It is also after information on digital platforms and bundling of financial services; and mixed activity groups providing both financial and non-financial services.
The call for evidence is open until 1 August and seeks feedback from all interested stakeholders.