The European Securities and Markets Authority has published a
consultation on draft guidelines on internal controls for benchmark administrators, credit rating agencies, and market transparency infrastructures (which include trade repositories, data reporting services providers, and securitization repositories). The guidelines outline ESMA's expectations for the components and characteristics of an effective internal control system. The proposed guidelines build on the internal control guidelines currently in place for CRAs and extend them to BMAs and MTIs. They also revise ESMA's expectations considering the growing impact of technology on supervised entities' operations, including in terms of managing technology risk from external and internal sources, and the integration of new technologies into supervised entities' internal controls. The draft guidelines also explain in greater detail how ESMA applies proportionality in its expectations regarding the internal controls for a supervised entity. The deadline for comments is March 19, 2025. ESMA expects to publish a final report by Q4 2025.
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