The European Securities and Markets Authority (ESMA) has expressed concern about sustainability claims in marketing communications within financial institutions that provide investment services, in a report published on Monday 27 May on the 2023 common supervisory action.
According to ESMA, marketing was not clearly identifiable as such and the potential risks and benefits were not presented in a balanced way or, in some cases, were not presented at all. ESMA points out that in such cases, this information cannot be considered fair.
In addition, the advertisement indicates that a service is free or that its cost is zero, while failing to mention that other charges may apply, which is contrary to the ‘MiFID II’ directive on financial instruments markets.
ESMA therefore recommends putting in place adequate approval and review processes for marketing communications, including advertisements, whether prepared by the company or by third parties. It invites senior management to become involved in the internal processes and procedures relating to the development, design and supervision of marketing materials.
Read the report: https://aeur.eu/f/cef (Original version in French by Anne Damiani)