The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, together with the National Competent Authorities (NCAs), completed an analysis of the cross-border provision of investment services during 2023.

The data sets were collected from investment firms across 30 jurisdictions in the EU/EEA.

The main findings include:

A total of around 386 firms provided services to retail clients on a cross-border basis in 2023;
Approximately 8 million clients in the EU/EEA received investment services from firms located in other EU/EEA Member States in 2023;
Compared to 2022, the cross-border market for investment services grew by 1.6% in terms of firm numbers, and by 5% in terms of retail clients, while the number of complaints increased by 31%;
Cyprus is the primary location for firms providing cross-border investment services in the EU/EEA, accounting for 20% of the total firms passporting investment services. Luxembourg and Germany follow with 15% and 14% of all firms, respectively; and
Germany, France, Spain, and Italy are the most significant destinations (in terms of number of retail clients) for investment firms providing cross-border services in other Member States.
The insights gained from the analysis will allow ESMA and the NCAs to better understand and monitor cross-border investment services provided by firms in the EU/EEA.