1. Legal basis

1. ESMA’s competence to deliver an opinion to the institutions is based on Article 34 of Regulation (EC) No 1095/2010 (the ‘Regulation’). In accordance with Article 44(1) of the Regulation the Board of Supervisors has adopted this opinion.
2. In this opinion to the European Parliament, the Council and the Commission, ESMA sets out its view on the necessary elements for a common European framework for loan origination by investment funds, taking into account the different frameworks currently in place in several Member States. ESMA is of the view that a common approach at EU level would contribute to a level playing field for stakeholders, as well as reducing the potential for regulatory arbitrage. This could in turn facilitate the takeup of loan origination by investment funds, in line with the objectives of the Capital Markets Union.

Link to Press Release - Click here.