The report identifies that the majority of the seven NCAs in scope (Capital Market Commission, Greece, National Bank of Hungary, Financial and Capital Market Commission, Latvia, Malta Financial Services Authority, Securities and Markets Commission, Portugal, Financial Supervisory Authority, Romania, and Swedish Financial Supervisory Authority) made improvements – since the most recent review in 2017 – by allocating more resources to the enforcement of financial information (EFI) – either by recruiting more staff or allocating more time to EFI activities. However, some NCAs still have staffing difficulties, with an obvious impact on the accomplishment of the EFI work plan and, more generally, on the allocation of time and skills to the topic.
The report also highlights that there is a risk of extra-pressure on resources due to the revised GLEFI that strengthen the EFI requirements, and the non-financial information tasks that are gaining importance and are often allocated to the EFI teams.
Overall, in terms of selection methods, it is considered that NCAs’ selection methods have improved and seem to be compliant with the GLEFI. Difficulties remain in relation to the implementation of those methods, particularly where resources can be scarce.
The objective of the follow up is to assess progress made by those NCAs for which recommendations were issued in 2017. The follow-up to the 2017 peer review was agreed in the ESMA 2020 Annual Work Programme but postponed due to the fast track peer review on the same Guidelines in the context of the Fast Track Peer Review Report on Wirecard.
NCAs will follow-up on the specific recommendations and ESMA will monitor this as part as its on-going activities.
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