The European Securities and Markets Authority, working with national competent authorities, found that cross-border investment activity continued to expand sharply across the EU and European Economic Area in 2025. About 15.5 million retail clients received services from firms in another member state, up 47% from 2024 and 94% from 2023. The number of firms rose by 2% to 379, while complaints remained broadly unchanged at 10,945 despite the growth in clients. Activity was highly concentrated. Firms based in Lithuania, Cyprus, Germany, Ireland and Malta served 88.5% of reported clients, with Lithuania overtaking Cyprus after its client total rose to 4.9 million. The five largest firms served 70% of all clients. France, Spain, Germany and Italy were the main destination markets, together accounting for 52% of clients. Execution services reached 87% of active clients, while shares and undertakings for collective investment in transferable securities were the most widely held products. Complaints fell from 104 to 71 per 100,000 clients, although ESMA cautioned that the data do not establish why complaints remained stable and may not capture any lag following client growth. Firms based in Ireland, Lithuania, Germany and Cyprus received 82% of complaints. The analysis covers firms serving more than 50 retail clients in a host state under the freedom to provide services and excludes domestic business and services provided through branches. ESMA plans its next data collection in 2027 and may adapt the exercise to the new Markets in Financial Instruments Directive II reporting framework required by the Retail Investment Strategy.

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