Reasons for publication
The compliance function is a crucial function within firms, responsible for identifying, assessing, monitoring and reporting on the firm's compliance risk, i.e. the risk that a firm fails to comply with its obligations under MiFID II.
The purpose of these draft guidelines is to enhance clarity and foster convergence in the implementation of certain aspects of the new MiFID II compliance function requirements, replacing the existing ESMA guidelines on the same topic, issued in 2012 [ESMA/2012/388]. The guidelines have been substantially confirmed albeit clarified and refined where necessary. In addition, they take into account new requirements under MiFID II and the results of supervisory activities conducted by national competent authorities (NCAs) on the application of the compliance function requirements.
On 15 July 2019, ESMA published a Consultation Paper (CP) with proposed draft guidelines. The consultation period closed on 15 October 2019. ESMA received 29
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