On 16 January 2023, the European Securities and Markets Authority (ESMA) announced that it is launching a common supervisory action (CSA) with national competent authorities (NCAs) on the application of MiFID II disclosure rules with regard to marketing communications across the European Union (EU).

As part of the CSA, NCAs will review whether marketing communications (including advertisements) are fair, clear, and non-misleading and how firms select the target audience for marketing communications, especially in the case of riskier and more complex investment products.

ESMA is aware that younger, less experienced investors, are particularly vulnerable when they operate online. Therefore, the CSA will closely consider marketing and advertising by firms through distribution channels including apps, websites, social media, and collaborations with affiliates such as influencers.

ESMA is certain that this initiative and the sharing of practices across NCAs, will help ensure consistent implementation of EU rules and enhance the protection of investors.

The CSA will be conducted over the course of 2023.

The press release can be found here.