EBA and ESMA Guidelines and Recommendations

In order to promote supervisory convergence, the European Banking Authority (EBA), according to Article 16(1) of Regulation (EU) No 1093/2010, and the European Securities and Markets Authority (ESMA), according to Article 16(1) of Regulation (EU) No 1095/2010, have the power to issue guidelines and recommendations to competent authorities and, as the case may be, financial institutions or financial market participants.

The Joint Committee of the European Supervisory Authorities (including EBA and ESMA) also has the power to issue guidelines and recommendations. The purpose of guidelines and recommendations is to establish consistent, efficient and effective supervisory practices within the European System of Financial Supervision (ESFS) and to ensure the common, uniform and consistent application of Union law.

Guidelines and recommendations are not per se directly applicable in the Member States unless the relevant competent authority has notified to the EBA or ESMA (as applicable) its compliance with that guidelines or recommendations as from a certain date.

Although competent authorities and financial institutions or market participants shall make every effort to comply with guidelines and recommendations, there may be instances where a competent authority decides to comply partially or not to comply with specific guidelines or recommendations. The status of compliance of a competent authority is available on the EBA and ESMA¹ website under the relevant guidelines or recommendations webpage.

A competent authority which has notified to the EBA or ESMA its compliance or its intention to comply must integrate the relevant guidelines or recommendations into its administrative practices and regulatory approach, which, so far as the CSSF is concerned, may be done for example by way of a Circular CSSF or any other implementation tool. Please note however that the CSSF does not systematically take an implementation tool.

The tables below provide an overview of the EBA, ESMA and Joint Committee guidelines and recommendations with the relevant topic, date of publication, date of application, CSSF compliance status and implementation tool (if applicable).