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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11 May 2026
ESMA34-1436284137-2305
ESMA - 201-203 rue de Bercy - CS 80910 - 75589 Paris Cedex 12 - France - Tel. +33 (0) 1 58 36 43 21 - www.esma.europa.eu 2 Final Report 2025 CSA on compliance and internal audit functions of fund managers

3
Table of Contents
Executive Summary ...........................................................................................................4

Background.................................................................................................................5
Scope of the analysis and methodology ......................................................................5
Compliance with the legislative framework ..................................................................6
Compliance function....................................................................................................9
Internal audit function ................................................................................................14
Follow-up actions envisaged by NCAs ......................................................................18
ESMA views and conclusions....................................................................................20
Annex: Good and poor practices ......................................................................................22

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Source: European Securities and Markets Authority — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works