ESMA publishes report on cross-border investment services supervision 20 July 2026 Supervisory convergence The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today published its follow-up report to the Peer Review on the supervision of cross-border activities of investment firms. The report assesses the progress made by national competent authorities (NCAs) in implementing recommendations issued in 2022 and covers the Netherlands, German...
ESMA’s report does **not introduce new binding rules**, but it does confirm that NCAs are being pushed to supervise cross-border investment services more intensively and in a more risk-based way. For compliance teams, this matters because firms with cross-border passports should expect tougher scrutiny of their business plans, stronger information requests, more targeted inspections, and closer coordination between home and host supervisors.
What Changed
- - ESMA reports that NCAs have strengthened authorisation assessments by placing greater emphasis on firms’ cross-border business plans and intentions before granting or maintaining permissions.
- NCAs are increasingly using data-driven and risk-based supervision to monitor cross-border activity and calibrate supervisory attention to the scale, nature, and complexity of the activity.
- NCAs have expanded cooperation and enforcement, including more targeted supervisory actions and reporting of enforcement cases where relevant.
- ESMA expects NCAs with significant outbound cross-border activity to ensure that their supervisory and enforcement approaches are proportionate to the level of risk and business volume.
- The report reinforces that cross-border activity should be treated as a distinct supervisory risk area, not merely as an incidental extension of domestic supervision.
Suggested Considerations
- Review cross-border business plans for all passported investment services and ensure they are supported by clear governance, staffing, systems, and client-service arrangements.
- Map all outbound cross-border activities by jurisdiction, client type, product type, and distribution channel so that compliance can identify where supervisory risk is highest.
- Strengthen controls over retail cross-border activity, including marketing, suitability/appropriateness, complaints handling, and local conduct requirements in each host market.
- Prepare to provide supervisors with more granular evidence of how cross-border risks are identified, monitored, escalated, and mitigated.
- Ensure internal reporting can distinguish cross-border revenue, complaints, incidents, and enforcement exposure from domestic business lines.
Key Dates
- ESMA’s original peer review identified shortcomings in the supervision of cross-border activities and issued recommendations to strengthen authorisation, supervision, cooperation, and enforcement
- ESMA’s 2026 work programme says the follow-up on the peer review of cross-border provision activities of investment firms was expected to be launched around this time
- ESMA published the follow-up report on the supervision of cross-border activities of investment firms
- ESMA indicated in the earlier peer review context that it expected to carry out a follow-up assessment in two years to review improvements, which aligns with a later-stage review cycle
Compliance Impact
The compliance impact is medium to high because the report raises supervisory expectations without creating a new standalone rulebook, but it clearly signals more intense scrutiny of firms active across borders. Non-compliance can lead to inspections, enforcement action, remedial directives, and reputational harm, especially for firms whose cross-border footprint is large or retail-facing.
AI-generated analysis. May contain errors or omissions — verify with the
original ESMA source
before acting. Full disclaimer.
Broker DealerAsset ManagerWealth Manager Joint Board of Appeal dismisses appeal against the EBA 16 July 2026 Board of Appeal The Joint Board of Appeal of the European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) has issued a decision stating that an appeal brought by an individual against the European Banking Authority (EBA) is inadmissible. The appeal concerned a response by the EBA to a complaint regarding the closure of a bank account by a credit institution and the handling of the matter by the Finnish National Compe...
The Joint Board of Appeal of the ESAs has dismissed as inadmissible an individual’s appeal against the EBA’s decision not to open a breach‑of‑Union‑law investigation into the Finnish supervisory authority’s handling of a bank account closure. This confirms that EBA’s decision whether to initiate a Union law breach investigation is a discretionary act that is not reviewable by the Board of Appeal and, in practice, offers very limited avenues for customers or firms to challenge an EBA non‑investigation decision.
For compliance teams, this reinforces that supervisory recourse routes for disputes over account closures and similar conduct are primarily at national level and in national courts, with EBA’s Article 17 “breach of Union law” mechanism remaining a high‑threshold, discretionary tool rather than a complaint or appeal channel.
What Changed
- - The decision clarifies that EBA’s decision whether or not to initiate an investigation into a possible breach or non‑application of Union law under Article 17 of Regulation (EU) No 1093/2010 is a...
- The Board of Appeal confirms that a decision not to open a Union law breach investigation does not constitute a reviewable “decision” for the purposes of Article 60(1)–(2) of the ESA Regulations and...
- The Board of Appeal confirms that individual complaints about account closures and associated supervisory handling remain primarily within the remit of national competent authorities and national...
- The decision reiterates that only certain categories of ESA acts that produce binding legal effects (for example, decisions adopted under Articles 17, 18 or 19 of the ESA Regulations, and acts within...
- The outcome aligns with prior Board of Appeal and EU court case law confirming that persons outside the specific categories listed in Article 17(2) of the ESA Regulations have no right of appeal to...
Suggested Considerations
- Review internal complaints‑handling and escalation procedures to ensure that disputes over account closures and related supervisory decisions are managed through national complaint bodies and courts, rather than assuming EBA or Board of Appeal review will be available.
- Update legal and compliance guidance notes to reflect that EBA’s decision whether to initiate a breach‑of‑Union‑law investigation is discretionary and generally not subject to appeal before the Board of Appeal, limiting external escalation avenues.
- Train front‑office, customer‑service and complaints staff to provide accurate information to customers about available redress routes, emphasising national ombudsman, national competent authority and judicial mechanisms rather than ESMA/EBA appeals.
- For groups operating across the EU, map national complaint and judicial mechanisms for account closures in each jurisdiction and integrate them into group‑wide conduct risk frameworks and customer communication templates.
- Monitor further ESA and EU court case law on which ESA acts are susceptible to appeal before the Board of Appeal, and adjust litigation and escalation strategies accordingly.
Key Dates
– Earlier ESA Board of Appeal case law clarifies that appeals are reserved for “decisions” that produce binding legal effects and that the Board lacks jurisdiction over acts that are not such decisions, including certain complaints‑handling outcomes
– In Decision BoA‑D‑2022‑01 (appeal “C” v EBA), the Board of Appeal holds that an appeal against EBA’s decision not to initiate an investigation into alleged non‑application of EU law in relation to payment accounts is inadmissible under Article 60(2) of Regulation (EU) No 1093/2010
– The ESAs’ Joint Board of Appeal issues the present decision dismissing, as inadmissible, an individual’s appeal against EBA’s decision not to open an investigation into a possible breach of Union law by the Finnish FIN‑FSA in relation to a bank account closure
Compliance Impact
Non‑compliance with national rules on account closures and customer treatment can lead to supervisory sanctions, civil liability and reputational damage, and firms should not rely on ESA‑level appeals as a corrective mechanism. The inability to challenge EBA’s non‑investigation decisions heightens the importance of robust conduct, documentation and national‑level redress management.
AI-generated analysis. May contain errors or omissions — verify with the
original ESMA source
before acting. Full disclaimer.
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ESMA reminds firms of existing rules and obligations under binary option measures amid growing popularity of prediction markets globally 03 July 2026 Investor protection The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has issued a statement reminding firms of their obligation to assess whether newly offered products fall within the scope of existing product intervention measures on binary options. The statement responds to the growing...
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ESMA identifies areas for further supervisory convergence on compliance and internal audit in the funds sector 11 May 2026 Audit Fund Management The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published the results of its 2025 Common Supervisory Action (CSA) on the compliance and internal audit functions of fund managers , carried out in with the participation of all EU and EEA national supervisors. The EU-wide review found that m...
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ESMA promotes proportionate supervision of MiFID II sustainability requirements 06 May 2026 Investor protection The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has issued a statement presenting the results of its Common Supervisory Action (CSA) on how sustainability is integrated into firms’ suitability assessment as well as into processes and procedures for product governance. The statement highlights key themes emerging from the sup...
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Joint Committee annual report highlights digitalisation, cyber resilience and sustainable finance as key priorities of 2025 24 April 2026 Joint Committee The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) today published its Annual Report for 2025 , setting out the main priorities and achievements of its cross-sectoral work over the past year. In 2025, the Joint Committee focused on protecting consumers in increasingly digital financial markets, stren...
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ESMA publishes latest edition of its newsletter 10 April 2026 ESMA newsletter The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published today its latest edition of the Spotlight on Markets newsletter. This edition opens with ESMA’s actions to simplify the retail investor journey and make investing more accessible, setting out steps to support retail participation in capital markets. Top news highlights include the publication of t...
ESMA's latest *Spotlight on Markets* newsletter (edition 42, published 10 April 2026) summarizes recent supervisory, enforcement, and policy actions, emphasizing simplification of retail investor access, high market risks per the first 2026 TRV report, and key publications on transparency, suitability, MiFID II/MiFIR data, and Listing Act compliance.[User Query] This matters for compliance teams as it signals ESMA's priorities in reducing regulatory burdens while enhancing investor protection and market transparency amid a high-risk environment.
What Changed
- The newsletter highlights no immediate binding rules but flags forthcoming or proposed changes via publications:
- Trends, Risks and Vulnerabilities (TRV) Report 2026: Identifies high-risk EU financial markets, urging heightened risk monitoring.[User Query]
- Annual transparency calculations for equity and equity-like instruments: Updates pre- and post-trade transparency thresholds, published 27 February 2026.[User Query]
- Joint EBA-ESMA consultation on revised suitability assessment: Proposes updates to requirements for banks and investment firms on assessing client knowledge and needs under MiFID II.[User Query]
- ESMA proposals to simplify MiFID II/MiFIR obligations on market data: Aims to streamline reporting and data access burdens.[User Query]
Suggested Considerations
- Review and implement transparency calculations: Adjust trading systems and disclosures for equity/equity-like instruments per 27 February 2026 publication.
- Respond to consultations: Submit feedback on suitability (by 25 May 2026), EMIR 3 (20 April), MAR delays (29 April), CCP collateral (30 April); attend 15 April hearing.
- Assess TRV risks: Conduct internal risk reviews aligning with high-risk market warnings; update policies on retail investor journeys and fund costs.[User Query]
- Update compliance programs: Incorporate MiFID II/MiFIR simplification proposals, Listing Act statement, market abuse guidelines, EMIR 3, sustainability reporting, and new Q&As.[User Query]
- Monitor enforcement: Review supervisory actions for peer benchmarks (e.g., similar to prior MFSA review).
Key Dates
Publication of annual transparency calculations for equity and equity-like instruments
Release of first 2026 TRV report and newsletter; .
Public hearing on EBA-ESMA joint guidelines on suitability of management body and key function holders
Consultation deadline on regulatory standards for post-trade risk reduction services under EMIR 3
Consultation on MAR Guidelines on delay in disclosure of inside information
Compliance Impact
Urgency: Medium. This newsletter compiles ongoing developments rather than enacting immediate rules, but tied consultations (e.g., suitability by 25 May 2026) and recent publications (e.g., transparency calculations) require prompt review to avoid enforcement risks in a high-risk market flagged by TRV.[User Query] It matters for aligning with ESMA's simplification push while preparing for stricter suitability, data, and risk rules, potentially reducing costs but increasing scrutiny on retail protection and transparency.
AI-generated analysis. May contain errors or omissions — verify with the
original ESMA source
before acting. Full disclaimer.
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ESMA sets out actions to simplify the retail investor journey and make investing more accessible 12 March 2026 Investor protection Press Releases The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its takeaways from the 2025 Call for Evidence (CfE) on the retail investor journey. Taking into account the input from stakeholders, ESMA outlines a number of actions and operational improvements it will take forward to make it ea...
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New investment funds drive reduction in costs to investors 03 March 2026 Fund Management Press Releases Risk monitoring The European Securities and Markets Authority (ESMA), the EU financial markets regulator and supervisor, today publishes its 2025 market report on the costs and performance of EU retail investment products . This eighth Costs and Performance report shows that ongoing costs in the EU continued to decline in 2024. This is however mostly due to new investment funds entering the...
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ESMA reminds firms of their obligations under CFD product intervention measures amid rising offerings of perpetual futures 24 February 2026 Investor protection The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has issued a statement reminding firms of their obligation to assess whether newly offered products fall within the scope of existing product intervention measures on contracts for differences (CFDs). The statement responds to the...
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Join us for ESMA’s Conference “A new era for EU capital markets” on 21 May 2026 05 February 2026 About ESMA The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is organising a high‑level conference “A new era for EU capital markets” on 21 May 2026 in Paris, France. Marking ESMA’s 15-year anniversary, the conference will bring together senior policymakers, regulators, leaders of major market infrastructures and financial institutions, as w...
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ESMA promotes clarity in communications on ESG strategies 14 January 2026 Sustainable finance The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, published today a second thematic note on sustainability-related claims, focusing on ESG strategies. The note concentrates on ESG integration and ESG exclusions, as references to these strategies are often made by market participants and widely referenced in marketing communications directed to ...
ESMA published a thematic note on January 14, 2026, providing guidance on clear, fair, and not misleading communications regarding ESG strategies, specifically ESG integration and ESG exclusions, to mitigate greenwashing risks in non-regulatory materials like marketing. This matters because sustainability claims heavily influence investor decisions, and misleading communications can lead to supervisory actions, reputational damage, and loss of trust, aligning with existing EU rules under SFDR and related frameworks without imposing new disclosures.
What Changed
- This is not a formal regulatory change but supervisory guidance reinforcing four principles for non-regulatory communications (e.g., marketing materials, websites, investor presentations, voluntary...
- Accurate: Claims must fairly represent sustainability profiles without exaggeration, falsehoods, omissions, cherry-picking, vagueness, or misleading ESG terminology/imagery.
- Accessible: Information must be easy to understand and navigate, with layered substantiation in electronic formats for retail materials.
- Substantiated: Backed by clear reasoning, facts, processes, and methodologies; disclose data limitations and comparison bases.
- Up to date: Reflect current data, with timely disclosure of material changes and analysis dates.
Practical do's/don'ts include explaining ESG processes in plain language, disclosing portfolio...
Suggested Considerations
- Review and update all non-regulatory ESG communications (marketing, websites, presentations, DDQs, PPMs) against the four principles and do's/don'ts.
- Define and clearly explain ESG integration/exclusions (e.g., processes, criteria, thresholds, portfolio impact, materiality).
- Ensure consistency across channels, substantiate claims with accessible evidence, and avoid vagueness or overstatements.
- Train compliance/marketing teams; monitor for updates as further thematic notes may follow.
- Cross-reference with first note and regulations like SFDR, Cross-Border Distribution Regulation.
Key Dates
- Publication of ESMA's first thematic note on ESG credentials (to be read in combination)
- Publication date of the thematic note on ESG strategies (second in series)
Compliance Impact
Urgency: High – Immediate risk of enforcement for greenwashing in high-visibility ESG marketing, amid rising supervisory scrutiny; non-compliance threatens fines, remediation, and reputational harm as investor focus on sustainability grows. Proactive alignment builds trust and differentiates firms.
AI-generated analysis. May contain errors or omissions — verify with the
original ESMA source
before acting. Full disclaimer.
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ESMA publishes 2024 data on cross-border investment activity of firms 22 December 2025 Investor protection The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, in cooperation with National Competent Authorities (NCAs), completed an analysis of the cross-border provision of investment services in 2024 . Data was gathered from investment firms across 30 jurisdictions in the EU/EEA. The main findings include: Around 370 financial firms provid...
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