The European Securities and Markets Authority will launch a Common Supervisory Action (CSA) with National Competent Authorities on conflicts of interest in the distribution of financial instruments, assessing how firms comply with MiFID II obligations to identify, prevent and manage conflicts when offering investment products to retail clients. The CSA will examine the potential impact of staff remuneration and inducements on product recommendations, how digital platforms may steer investors towards particular products and whether this aligns with clients’ best interests, and how firms address tensions between their own profitability and retail investors’ needs. ESMA expects the work and exchange of supervisory practices among NCAs to support consistent application of EU rules and strengthen investor protection. ESMA and the NCAs will carry out the CSA during 2026.
European Securities and Markets Authority 2025-12-02
European Securities and Markets Authority to launch common supervisory action with national authorities on conflicts of interest in retail product distribution
The European Securities and Markets Authority (ESMA) will initiate a Common Supervisory Action with National Competent Authorities to assess compliance with MiFID II obligations on conflicts of interest in financial instrument distribution. The focus will be on staff remuneration, inducements, digital platform influences, and aligning product recommendations with clients' best interests. ESMA aims to ensure consistent EU rule application and enhance investor protection.