ESMA reviews NCA progress on cross-border investment firm supervision
ESMA published a follow-up report assessing NCA implementation of 2022 peer review recommendations on supervising cross-border investment firm activities.
ESMA's follow-up peer review signals continued scrutiny of NCA supervision over cross-border investment services. Firms passporting into other Member States should expect tighter host/home coordination, enhanced conduct monitoring and greater information sharing among NCAs.
Cross-border investment firms face heightened supervisory convergence risk, particularly around conduct, marketing, and complaint handling in host jurisdictions.
Action Required
Review cross-border passporting controls and align supervisory expectations with ESMA's convergence findings for NL, DE and other covered NCAs.
Signals persistent ESMA focus on supervisory arbitrage and cross-border conduct risk within EU investment services.
Reassess cross-border passporting risk controls, host-state conduct obligations, and NCA engagement protocols in light of ESMA's convergence follow-up.
“ESMA published its follow-up report to the Peer Review on the supervision of cross-border activities of investment firms, assessing NCA progress in implementing 2022 recommendations, covering the Netherlands, Germany and others.”
Published: 2026-07-20