European securities regulator, the European Securities and Markets Authority (ESMA), has issued a “call for evidence” on digital finance.
According to a statement posted by the ESMA, they are seeking information on “value chains,” platforms, and financial/non-financial services. The initiative is part the EU’s goal of providing better financial services to a wider range of businesses and investors, possibly at a lower cost.
ESMA notes that its advice to the European Commission will assist them to address challenges such as areas of risk, and where relevant, changes to the existing legislative framework by mid-2022.
ESMA is requesting information on three topics:
1. 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;
2. digital platforms and bundling of financial services; and
3. mixed activity groups providing both financial and non-financial services.
The call for evidence by the ESMA is open until August 1, 2021, and seeks feedback from all interested stakeholders, including financial services firms, tech firms and other interested parties. ESMA says it will consider the information received through this call for evidence when drafting its advice to the EC. ESMA, together with the other European Supervisory Authorities, expects to deliver a report to the EC by January 31, 2022.