ESMA reports growth in EU cross-border investment and issues greenwashing guidance

The European Securities and Markets Authority (ESMA) has released a report indicating a significant rise in cross-border investment services within the EU and EEA. In 2025, approximately 15.5 million retail clients received services from firms located in different member states, representing a 47% increase from 2024. While the number of active firms remained stable, the scale of service delivery expanded. Luxembourg remains a primary hub for these activities, ranking second only to Cyprus in the number of cross-border providers.

In a separate regulatory move, ESMA issued two guidance notes to combat greenwashing and misleading communications. These notes target investment firms regarding environmental and social impact claims, as well as climate transition claims. The guidance instructs firms to clearly define how they measure results, disclose necessary assumptions, and explain how their products support a low-carbon economy to ensure investors receive balanced and transparent information.