The European Securities and Markets Authority (ESMA) has conducted a peer review of how national competent authorities (NCAs) supervise MiFID conduct of business rules on providing fair, clear and not misleading information to clients.
ESMA found that overall there was a high degree of compliance amongst NCAs with good practices identified in a number of key areas. However, ESMA also found that amongst the NCAs a variety of approaches were used, leading to different intensity of supervision.
ESMA also identifies a number of areas for future work by NCAs and itself which could promote a more coherent cross-EU application of the requirements. These include:
- establishing more robust structures and efficient coordination and cooperation agreements between different supervisory units within NCAs;
- defining a clear set of information and marketing material to be supervised;
- assessing the frequency of NCAs’ monitoring of investor information and marketing;
- assessing the adequacy of monitoring the distribution channels used by firms including in the cross border provision of services; and
- requiring investment firms to submit to their NCAs details of all information and marketing material to be provided including material used for cross-border business.
View ESMA reviews supervisory practices on MiFID investor information, 11 December 2014
