The European Securities and Markets Authority has launched a Common Supervisory Action on the risk management function of UCITS management companies and Alternative Investment Fund Managers across the European Union. Running through 2026 and 2027 with National Competent Authorities, the exercise will assess compliance with key risk-related requirements under the UCITS and Alternative Investment Fund Managers Directive frameworks, with particular attention to the effectiveness, independence and expertise of firms' risk management functions. Supervisory work will focus on three areas: the governance and organisation of the risk management function, the identification, measurement and monitoring of risks, and reporting to senior management and governing bodies. The review will use a common assessment framework developed by ESMA that sets the scope, methodology, supervisory expectations and timeline, with the aim of supporting a consistent supervisory approach across the EU. ESMA also said National Competent Authorities will share knowledge and supervisory experience through the exercise. ESMA plans to publish a final report on the results of the exercise in 2028.
European Securities and Markets Authority2026-07-03
European Securities and Markets Authority launches EU supervisory review of risk management functions at UCITS managers and AIFMs
The European Securities and Markets Authority has launched an EU-wide Common Supervisory Action on the risk management functions of UCITS management companies and Alternative Investment Fund Managers. The 2026-2027 review will examine compliance with key UCITS and AIFMD risk requirements, focusing on governance, risk identification and monitoring, and reporting to senior management and boards. ESMA expects to publish the final results in 2028.