ESMA publishes report on cross-border investment services supervision

The follow-up shows that the peer review has successfully driven improvements across the supervisory cycle and helped strengthen the supervision of cross-border investment services within the EU Single Market.

The report highlights notable progress in three key areas:

• Stronger authorisation controls – NCAs have enhanced assessments of firms’ cross-border plans. 
• Data-driven and risk-based supervision – NCAs are increasingly using data to monitor cross-border activities, tailoring supervisory action based on identified risks. 
• Enhanced cooperation and enforcement – NCAs have undertaken more targeted supervisory actions, reported enforcement cases where relevant and strengthened cooperation.

The report also encourages NCAs with significant outbound cross-border activities to ensure that their supervisory and enforcement approaches match the scale and complexity of these activities, and keeps pace with evolving risks. 

Effective supervision of cross-border activities remains essential to ensuring that investors receive consistent levels of protection regardless of where investment services are provided.

Next steps

ESMA encourages all NCAs, and in particular those where outgoing cross-border activities is significantly growing, to reflect on the report’s conclusions. 

As retail cross-border investment services continue to expand, ESMA will maintain its focus on fostering supervisory convergence, enhancing cooperation among national supervisors and supporting data-driven, risk-based supervision. These efforts aim to ensure stronger investor protection and contribute to the effective functioning of the EU Single Market.

Further information:

Tayfun Yilmaz

Communications Officer
press@esma.europa.eu