The European Securities and Markets Authority (ESMA), the EU securities markets regulator, today publishes its 2022 reports on the use by National Competent Authorities (NCAs) of sanctions under the Undertakings for Collective Investments in Transferable Securities (UCITS) and the Alternative Investment Fund Managers Directive (AIFMD).
The pattern evidenced by the reports throughout the years (since 2013 for AIFMD and 2016 for UCITS) shows that, besides a limited number of NCAs issuing an increasing number of sanctions, the level of sanctions issued at national level remains stable and generally low, in particular when it comes to penalties.
Some highlights from the data
UCITS sanctions: In 2022, 9 NCAs imposed a total of 38 penalties, compared with 61 penalties issued by 12 NCAs in 2021. 98% of the total amount of penalties was imposed by a single NCA. 16 NCAs did not impose any sanction during this period.
AIFMD sanctions: In 2022, 10 NCAs issued a total amount of penalties of €2.5M, compared to €42.9M in 2021. 60% of the total amount of penalties was imposed by a single NCA.
16 NCAs did not impose any sanction either under the UCITS Directive or the AIFMD during this period.
The reports published today contain an overview of the applicable legal framework and information on the penalties and measures imposed by NCAs from 1 January 2022 to 31 December 2022. NCAs submit data on the use of sanctions to ESMA, which forms the basis of the annual aggregated report.