The European Securities and Markets Authority (ESMA) has launched a joint supervisory action with the national competent authorities (NCAs) to monitor the implementation of the MiFID II disclosure rules on marketing communications in the European Union. This evaluation will take place during 2023.
ESMA is aware of the key role that marketing communications and advertising can play in influencing consumer behaviour and investment decisions. Therefore, the Authority initiated this action to assess the implementation by investment firms and credit institutions of the MiFID II requirements on marketing communications.
NCAs will examine if marketing communications are fair, clear and not misleading and how companies select their target audience, especially for riskier and more complex investment products.
The Authority reiterates that younger and less experienced investors are particularly vulnerable when operating online. For this reason, this action will also consider the marketing and advertising of companies through distribution channels including apps, websites, social media and collaborations also with influencers.
This vigilance will also be an opportunity to gather information on possible “greenwashing” practices in marketing communications and advertisements.