What is the European Single Access Point (ESAP)?
On 25 November 2021, the European Commission adopted a legislative proposal "establishing a European Single Access Point providing centralised access to publicly available information of relevance to financial services, capital markets and sustainability". The European Single Access Point (ESAP) offers a single access point about EU companies and EU investment products.
This will give companies more visibility towards investors, opening up more sources of financing. This is particularly important for small companies in small capital markets, as they will more easily be on the radar screen of EU, but also international investors.
The ESAP will also contain sustainability-related information published by companies, which will support the objectives of the European Green Deal. As a common data space, the ESAP is a fundamental enabler of the EU's Digital Strategy and the Digital Finance Strategy.
In the preamble of Commission Delegated Regulation (EU) 2016/1437 that supplements the Transparency Directive 2004/109/EC, we read:
"In order to ensure fast access to regulated information on a non-discriminatory basis and make that information available to end users, the European Securities and Markets Authority (ESMA) has an obligation to develop and operate a European Electronic Access Point (EEAP). The EEAP should be conceived as a web portal accessible through ESMA's website and, given its centralising role, should not assume the functions of official appointed mechanisms (OAMs) in respect of storage of regulated information. The EEAP should provide access to regulated information stored by all OAMs, avoid the duplication of data storage and minimise the risks to security of data exchange."
The ESAP is an answer to the requirements of Commission Delegated Regulation (EU) 2016/1437 that supplements the Transparency Directive 2004/109/EC.
20 December 2023 - Regulation (EU) 2023/2859 of 13 December 2023 establishing a European single access point providing centralised access to publicly available information of relevance to financial services, capital markets and sustainability, was published in the Official Journal of the EU (OJ).
According to Article 1, The European single access point:
1. By 10 July 2027, ESMA shall establish and operate a European single access point (ESAP) providing centralised electronic access to the following information:
(a) information made public pursuant to the Union legislative acts listed in the Annex or pursuant to any further legally binding Union acts that provide for centralised electronic access to information on ESAP;
(b) information that any entity governed by the law of a Member State chooses to make accessible on ESAP on a voluntary basis, in accordance with Article 3(1), and that is referred to in the Union legislative acts listed in the Annex or in any further legally binding Union acts that provide for centralised electronic access to information on ESAP.
2. The information referred to in paragraph 1, point (a), of this Article shall not be submitted to collection bodies for the purpose of being made accessible on ESAP before the date of application of the requirement to submit that information as provided for in the Union legislative acts listed in the Annex or in any further legally binding Union acts that provide for centralised electronic access to information on ESAP.
3. Collection bodies that are Union bodies, offices or agencies may make available to ESAP historical information starting from the date of application of the requirement to submit the information to ESAP as provided for in the Union legislative acts listed in the Annex or in any further legally binding Union acts that provide for centralised electronic access to information on ESAP.
According to Article 6, Cybersecurity:
ESMA shall put in place an effective and proportionate IT security policy for ESAP and shall ensure appropriate levels of authenticity, availability, integrity and non-repudiation of the information made accessible on ESAP and of the protection of personal data. ESMA may carry out periodic reviews of the IT security policy and the cybersecurity situation of ESAP in the light of evolving international and Union cybersecurity trends and latest developments.
According to Article 7, Functionalities of ESAP:
1. ESMA shall ensure that ESAP has at least the following functionalities:
(a) a web portal with a user-friendly interface, which takes into account the access needs of persons with disabilities, to provide access to the information on ESAP in all official languages of the Union;
(b) an API enabling easy access to the information on ESAP;
(c) a search function in all official languages of the Union;
(d) an information viewer;
(e) a machine translation service for the information retrieved;
(f) a download service, including for the download of large quantities of data;
(g) a notification service informing users of any new information on ESAP;
(h) the presentation of information submitted on a voluntary basis pursuant to Article 1(1), point (b), in such a manner that:
(i) it can be clearly distinguished from information submitted on a mandatory basis pursuant to Article 1(1), point (a);
(ii) where applicable, users are informed that the information does not necessarily meet all the requirements for information submitted on a mandatory basis pursuant to Article 1(1), point (a), and will not necessarily be updated over time.
2. ESMA shall ensure that ESAP provides for the functionalities referred to in paragraph 1, points (e) and (g), by 10 July 2028. ESMA shall ensure that ESAP provides for the functionalities referred to in paragraph 1, point (h), by 9 January 2030.
3. The search function referred to in paragraph 1, point (c), of this Article shall allow for a search on the basis of the following metadata:
(a) the names of the entity that submitted the information and of the natural or legal person to which the information relates;
(b) the legal entity identifier of the entity that submitted the information and of the legal person to which the information relates;
(c) the type of information, as referred to in Article 1(1), submitted by the entity and whether such information was submitted on a mandatory basis under Article 1(1), point (a), or on a voluntary basis under point (b) of that paragraph;
(d) the date and time when the information was submitted by the entity to the collection body;
(e) the date or period to which the information relates;
(f) the size of the entity by category that submitted the information and of the legal person to which the information relates;
(g) the country of the registered office of the legal person to which the information relates;
(h) the industry sector(s) of the economic activities of the natural or legal person to which the information relates;
(i) the collection body responsible for the collection of the information;
(j) the language in which the information was submitted.
Which is the difference between the European Single Access Point (ESAP) and the Business Registers Interconnection System (BRIS)?
The European Single Access Point (ESAP) will be built separately from the Business Registers Interconnection System (BRIS) developed in accordance with the Company Law Directive, allowing both systems to pursue their own standards and objectives, based on own respective governance.
The European Single Access Point (ESAP) will be complementary to the Business Registers Interconnection System (BRIS). Overlap on data collected for the purposes of BRIS and ESAP will be limited to certain accounting documents (financial statements, audit reports, management reports including corporate sustainability reporting, and country-by-country reporting by extractive industries).
Problems that the European Single Access Point (ESAP) aims to solve.
The lack of an integrated financial and non-financial company data management at the EU level is detrimental in many ways.
First, it increases search costs for users. Along with investors, easy access to reliable and comparable public information is essential for financial intermediaries, such as rating agencies, financial analysts, research providers, and asset managers, which need such data to make informed decisions.
The situation undermines the investors’ ability to scale their investment strategies on an EU-wide basis. Other users, such as civil society, also report difficulties to easily access ESG and other types of information to be published by companies.
Second, the current fragmentation of information is also detrimental to companies, and in particular SMEs. Whereas it is easier for blue chip companies to increase their visibility (road shows or events, indices, etc.), other companies which have chosen to take advantage of capital markets to meet diversified and increased funding needs may still experience difficulties to reach out to investors due to their situation (smaller markets) or size.
Companies seeking to tap EU capital markets, especially SMEs, may also want to increase their visibility towards investors, including across national borders, to support their growth. The ESAP may offer the ability to integrate their data on a voluntary basis.
Third, transitioning to a carbon-neutral and sustainable economy requires substantial investments. The EU will need to invest, every year, €350 billion more over the period 2021-2030 than it did in the period 2011-2020. This is essential to meet the ambition of reducing greenhouse gas emissions in the EU by 55% in 2030 compared to 1990 levels.
Sustainability-related information is key to redirect investments into projects that will support the green transition, as underlined by stakeholders in the consultation on the renewed sustainable finance strategy.
Expected impact of the European Single Access Point (ESAP).
From an economic angle, the ESAP will increase the circulation of information, both within the Member States and across borders. The initiative would also foster machine readability in the long run. This will bring higher, equal and indiscriminate visibility of any market participants and voluntary filer, independently from their own size or the size of their market to investors, analysts, intermediates, researchers or funds. Such visibility will open up funding opportunities, ensure a better allocation of capital, thus contributing to lower cost of capital and more resilience of the internal market.
From an investor perspective, ESAP will ensure easy access to a wider array of information in a timely and efficient manner, thus opening new horizons. Investors will save time and resources for searching and processing information. The ESAP will help address a growing need for sustainability-related data by companies, thus contributing to the objectives of sustainable finance and the Green Deal.
It will serve the needs of other data users including retail investors and financial advisors, public administrations, civil society, researchers and academia.
The ESAP will enable the offer of innovative services in the financial area based on analytics, big data or artificial intelligence / machine learning, and as well access and use on electronic devices.