What was the check-up about?
In 2022, ESMA told regulators in Germany, Netherlands, Luxembourg, Czech Republic, Cyprus, and Malta, to do better at supervising firms that sell investment services across borders.
This report assesses whether those recommendations were followed.
Three areas improved 1. Tougher checks before approval. In recent years, regulators have now looked more closely at a firmâs plans before letting it offer services in other European countries.
1.Smarter, data-based monitoring. Countries are using more data to spot risks instead of just random checks. Supervision is now focused where the biggest risks are.
3.There has since been greater unity among regulators, with increased cooperation, targeted action, and more reporting when firms are penalized.
What ESMA still wants:
Countries with lots of firms selling services abroad need to make sure their oversight matches how big and complex those activities are. Risks are changing fast, so supervision has to keep up.
Why it matters to you:
The goal is simple: investors should get the same level of protection no matter which EU country their investment firm is based in. With more people buying investments across borders, especially retail investors, consistent rules are critical.
Whatâs next
ESMA is telling all EU regulators to review the findings. It will keep pushing for:
Countries to use supervisory convergence,
Better cooperation between regulators
More use of data in order to catch problems early.
While Europe tightens oversight, Africa still faces a growing wave of cross-border investment fraud. For South African investors, stronger supervision isnât optional itâs urgent. The EUâs progress shows whatâs possible when regulators act.
Kesia Qulu | Connect World TV-Investment and Crypto Sector News
Sector:Investment and Crypto Sector News
Published: 26 July 2026
Posted by: Admin Kesia Qulu
Area: South Africa
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