CySEC publication- ESMA launches a Common Supervisory Action with NCAs on MiFID II conflicts of interest requirements

With reference to the above-mentioned subject, we would like to note that according to the CySEC Circular C758, the European Securities and Markets Authority (“ESMA”) has launched a Common Supervisory Action for2026 (“CSA 2026”) with national competent authorities (“NCAs”) on the conflicts of interest in the distribution of financial instruments.

The goal of the CSA 2026 will be to assess how firms comply with their obligations under MiFID II to identify, prevent, and manage conflicts of interest when offering investment products to retail clients and will focus on:

  • The possible impact of staff remuneration and inducements on what products are offered to investors.
  • The role of digital platforms in directing investors towards certain products, and whether this serves their best interests.
  • The ways firms manage potential conflicts between their own profits and the needs of retail investors.

 

For the purposes of the CSA 2026, CySEC will consider the following regulatory framework:

  1. Articles 10(1)(c)(iii), 17(2), 17(3), 24 and 25 of the Law 87(I)/2017.
  2. Articles 22, 23, 24, 27, 33, 34 and 35 of the Commission Delegated Regulation (EU) 2017/565.
  3. Articles 11(3) and 13 of the CySEC Directive DI87-01.
  4. ESMA Guidelines on certain aspects of the MiFID II remuneration requirements.

Therefore, CySEC expects CIFs to adhere to the content of this Circular as it will form part of CySEC’s supervisory review for the purposes of the CSA 2026.

For further information or assistance, please do not hesitate to contact us.