On October 1, the European Securities and Markets Authority (ESMA) published a letter (dated September 26) from ESMA chair Steven Maijoor to European Commission vice president Valdis Dombrovskis on issues relating to third-country firms concerning certain requirements under the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR).

The letter highlights four issues relating to:

• Concerns regarding the MiFIR regime for third-country firms providing investment services and activities to eligible counterparties and per se professional clients;

• Concerns regarding the MiFID II regime for third-country firms providing investment services and activities to retail and professional clients on request;

• Third-country firms providing investment services and activities at the exclusive initiative of EU clients (reverse solicitation); and

• Investment firms outsourcing critical or important functions other than those related to portfolio management to third-country providers.

Although the above issues were initially identified in the context of the discussion on the risks arising from Brexit, Mr. Maijoor explains that the issues seem more general and apply beyond Brexit.

The letter is available here.