meta_id 3338232

On July 20, 2026, the European Securities and Markets Authority (ESMA) published a follow-up report assessing progress made by national competent authorities (NCAs) in implementing recommendations from its 2022 Peer Review on the supervision of cross-border activities of investment firms. The report covers six jurisdictions: the Netherlands, Germany, the Czech Republic, Luxembourg, Cyprus, and Malta. The follow-up report demonstrates that the peer review process has successfully driven improvements in supervisory practices across the EU Single Market. ESMA identified notable progress in three key areas: stronger authorisation controls, with NCAs enhancing assessments of firms' cross-border plans; data-driven and risk-based supervision, with NCAs increasingly using data to monitor cross-border activities and tailor supervisory action based on identified risks; and enhanced cooperation and enforcement, with NCAs undertaking more targeted supervisory actions and strengthening cooperation mechanisms. The report emphasises that effective supervision of cross-border activities remains essential to ensure investors receive consistent levels of protection regardless of where investment services are provided. ESMA encourages NCAs with significant outbound cross-border activities to ensure their supervisory and enforcement approaches match the scale and complexity of these activities and keep pace with evolving risks. ESMA will maintain its focus on fostering supervisory convergence and enhancing cooperation among national supervisors as retail cross-border investment services continue to expand. The authority aims to support data-driven, risk-based supervision to strengthen investor protection and contribute to the effective functioning of the EU Single Market. The full follow-up report is available on ESMA's website.