ESMA says sanctions for MiFID II breaches reach €8.4M in 2020
The European Securities and Markets Authority (ESMA) today published its third report on the use of sanctions and measures by National Competent Authorities (NCAs) under the Markets in Financial Instruments Directive (MiFID II).
NCAs activity in this area increased in 2020 compared to 2018 and 2019, both in terms of the total number of sanctions and measures and the amount of fines. Overall, in 23 (out of 30) EU/EEA Member States, NCAs imposed a total of 613 sanctions and measures in 2020 for an aggregated value of about €8.4 million, compared to 371 sanctions and measures and about €1.8 million, issued by NCAs of 15 EU/EEA member states, in 2019.
It is worth noting that while some nations were very active in penalizing violators, the overall size of the penalties was not that big. For example, Bulgaria imposed 195 sanctions and measures but the overall amount of the penalties is EUR 402,393.
Cyprus, on the other hand, reports 9 sanctions and measures for MiFID II breaches, with the total being EUR 1,940,000. Spain reported two sanctions – the sum being EUR 2,300,000.
The sanctions include actions such as a public statement; a withdrawal of authorisation; a temporary ban; administrative fines etc.
ESMA continues its work to foster supervisory convergence in the application of MiFID II and will proceed issuing reports on sanctions on an annual basis for future reporting periods.