The European Securities and Markets Authority has launched a Common Supervisory Action with national competent authorities to review compliance and internal audit functions at UCITS management companies and Alternative Investment Fund Managers across the EU. The exercise will assess whether firms have established effective functions with adequate staffing, authority, knowledge and expertise to meet requirements under the UCITS and AIFM Directives. Supervisors will apply a common assessment framework developed by ESMA, setting the scope, methodology, supervisory expectations and timeline to support a consistent approach. Throughout 2025, national competent authorities will share knowledge and experiences via ESMA to foster supervisory convergence in this area. ESMA will publish a final report with the results in 2026.