Regulatory Alerts2026-05-11
Added · Updated
ESMA Final Report on Compliance and Internal Audit Functions in the Funds Sector (2025 CSA)
ESMA issued this final report following its 2025 Common Supervisory Action that evaluated the compliance and internal audit functions of AIFMs and UCITS management companies across 30 EU/EEA jurisdictions. While overall adherence to the AIFMD and UCITS directives was deemed satisfactory, the exercise identified key vulnerabilities including insufficient independence, inconsistent risk-based planning, inadequate internal reporting to senior management, and uneven resource allocation. National competent authorities are expected to implement targeted follow-up supervisory actions and issue jurisdiction-specific guidance, while ESMA will continue fostering cross-border cooperation to strengthen regulatory convergence.
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