The European Securities and Markets Authority published a peer review on how national competent authorities supervise depositaries’ oversight and safekeeping obligations. It found that foundational supervisory frameworks are in place, but supervisory approaches differ materially across jurisdictions in their depth and maturity, with some authorities showing granular practices and others needing improvement. Cross-cutting findings include a need for more frequent, risk-proportionate supervisory engagement, given the concentration of depositaries in the assessed markets and their potential systemic significance. The review also raised concerns about the depth and intrusiveness of several authorities’ assessments where depositaries entrust significant tasks to third parties, in light of depositaries’ obligation to carry out control-related activities autonomously. The assessment covered supervisory and enforcement practices in Czechia (Czech National Bank), Ireland (Central Bank of Ireland), Italy (Bank of Italy), Luxembourg (Commission de Surveillance du Secteur Financier) and Sweden (Swedish Financial Supervisory Authority). ESMA intends the report to support consistent supervision across the EU and said it will continue discussions on depositary supervision and follow up on the report’s recommendations in due course.
European Securities and Markets Authority 2025-11-17
European Securities and Markets Authority peer review finds uneven supervision of depositaries and calls for more intrusive oversight of outsourcing
The European Securities and Markets Authority (ESMA) released a peer review on national authorities' supervision of depositaries, highlighting significant variations in supervisory depth across jurisdictions. The review identified a need for more frequent, risk-proportionate engagement and raised concerns about assessments when depositaries delegate tasks to third parties. ESMA aims to promote consistent supervision across the EU and will follow up on the report's recommendations.