ESMA launches a Common Supervisory Action with the CMVM on Compliance and Internal Audit Functions of UCITS management companies and Alternative Investment Fund Managers

On January 14, 2025, the European Securities and Markets Authority (ESMA), in collaboration with the National Competent Authorities (in Portugal, the CMVM) launched a Common Supervisory Action to evaluate the effectiveness of compliance and internal audit functions of UCITS management companies and Alternative Investment Fund Managers across the EU.

Throughout 2025, the initiative will assess whether these entities have adequate resources, knowledge, experience and robust internal controls to ensure compliance with the AIFMD and UCITS Directives, protecting investors and the financial stability.

The work will be done using a common assessment framework developed by ESMA, which sets out the scope, methodology, supervisory expectations, and timeline to ensure consistent and harmonized supervisory action.

The results will be disclosed in a final report in 2026, to be published by ESMA.

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