ESMA publishes report on the supervision of cross-border investment services
The ESMA report evaluates progress in supervising cross-border activities in the EU's single market, highlighting advances in authorizations, data-driven supervision, and enhanced cooperation.
The European Securities and Markets Authority (ESMA), the EU's financial markets regulator, published its monitoring report on the peer review of cross-border supervision of investment firms' activities. The document assesses the progress made by national competent authorities (NCAs) in implementing the recommendations issued in 2022, covering the Netherlands, Germany, the Czech Republic, Luxembourg, Cyprus, and Malta.
Key Findings of the Report
The report emphasizes significant improvements in three key areas:
- Stricter authorization controls: NCAs have improved their assessment of the cross-border plans of firms.
- Data and risk-based supervision: More information is being used to monitor activities, adapting actions to identified risks.
- Increased cooperation and enforcement: More targeted actions have been taken, and enforcement cases have been reported when appropriate, strengthening cooperation.
These improvements reflect the positive impact of the peer review on the supervision cycle, strengthening cross-border investment services within the EU's single market.
Future Recommendations
The ESMA report urges NCAs with significant outgoing cross-border activities to adjust their supervisory and enforcement approaches to the scale and complexity of these activities. Effective supervision is crucial to ensure that investors receive a consistent level of protection, regardless of where investment services are provided.
Next Steps
ESMA encourages all NCAs, especially those with significant growth in cross-border activities, to reflect on the report's findings. As cross-border retail investment services continue to expand, ESMA will maintain its focus on promoting supervisory convergence, improving cooperation among national supervisors, and supporting data-driven and risk-based supervision. These efforts aim to ensure greater investor protection and contribute to the effective functioning of the EU's single market.
For more information, please contact Tayfun Yilmaz, Communications Officer, at [email protected].
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Miguel Sandoval
Regulatory Affairs Correspondent
Miguel Sandoval tracks gambling legislation, licensing, and regulator enforcement — from Spain's DGOJ and the Latin American authorities to the UKGC, the MGA, and the state-by-state map in North America. The reports answer three questions precisely — what changed, where, and who it affects — with jurisdictions, dates, and penalties cited exactly as published. Operators and compliance officers read Miguel Sandoval to know which rulebook moved before their next meeting.
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