By Thekla Nikolaou
Manager, Compliance Support Department
With the regulatory framework constantly evolving and becoming more restrictive, staying compliant is a persistent challenge. In a move aimed at bolstering investor protection across the EU, the European Securities and Markets Authority’s (ESMA) released this May a report on the 2023 Common Supervisory Action (CSA) and Mystery Shopping Exercise on marketing communications. This report offers crucial insights into how investment firms present their products to their investors and highlights the ongoing efforts to ensure that marketing practices align with regulatory standards.
Key Findings & Implications
ESMA’s report highlights several areas where investment firms excel and others where improvement is needed. Here are some key takeaways:
Moving Forward
The insights garnered from ESMA’s report are a wake-up call for the investment industry. By taking these findings seriously and implementing the recommended changes, investment firms can significantly enhance their marketing practices, foster greater trust with their clients, and ensure compliance with regulatory standards.
In the report, ESMA explicitly encourages NCAs to use the full range of the supervisory and enforcement toolkit they have been provided with by the applicable framework. This means that NCAs should not only apply escalated supervisory measures but also impose sanctions in case of breaches.
For investment firms committed to best practices and regulatory compliance, now is the time to act to strengthen your reputation and long-term success.
To delve deeper into the full ESMA report and its implications, you can access it here.
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