A review will be undertaken this year to assess whether marketing and advertising comply with MiFID II disclosure rules.
EMSA (European Securities and Markets Authority) together with other European financial regulators are planning to review practices used to market financial products to ascertain their compliance with MiFID II disclosure rules.
In a notice on Monday (16 January), ESMA said the review will be conducted over the course of 2023 and focus on whether marketing communications and advertisements of financial products are fair, clear and non-misleading.
The review will also assess how European firms select the target audience for their marketing communications, especially in the case of riskier and more complex investment products.
ESMA said it is aware that younger, less experienced investors, are particularly vulnerable when they operate online. For this reason, the review will also closely scrutinise marketing and advertising distributed through digital channels such as apps, websites, social media, and collaborations with affiliates such as influencers.
The review will also enable regulators to collect information about possible ‘greenwashing practices’ observed in marketing communications and advertisements.
The review and subsequent sharing of practices across European regulators will help to ensure the consistent implementation and application of EU rules, enhance the protection of investors, and contribute towards building a common supervisory culture among EU regulators, ESMA said.