The European Securities and Markets Authority (ESMA) is launching a common supervisory action (CSA) with national competent authorities (NCAs) on the application of MiFID II disclosure rules with regard to marketing communications across the EU.
As part of the CSA, to be conducted over the course of 2023, NCAs will review whether marketing communications,(including advertisements), are fair, clear and non-misleading and how firms select the target audience for the marketing communications.
The CSA will also assess the application by investment firms and credit institutions of the MiFID II requirements on marketing communications.
In addition, the CSA will closely consider marketing and advertising by firms through distribution channels including apps, websites, social media and collaborations with affiliates such as influencers.
The 2023 CSA will also be an opportunity to collect information about possible ‘greenwashing practices’ observed in marketing communications and advertisements, says ESMA.
ESMA says: “This initiative. and the related sharing of practices across NCAs, will help ensure consistent implementation and application of EU rules and enhance the protection of investors in line with ESMA’s objectives.”
“The CSA contributes to fulfilling ESMA’s mandate on building a common supervisory culture among NCAs to promote sound, efficient, and consistent supervision throughout the EU. ESMA’s promotion of supervisory convergence is done in close cooperation with NCAs.”
