ESMA publishes latest edition of its newsletter

The European Securities and Markets Authority (ESMA) has published its latest edition of the Spotlight on Markets Newsletter, covering key developments in February and March 2025. The newsletter focuses on the use of artificial intelligence (AI) for investing, securitisation, and central counterparties. ESMA and national competent authorities (NCAs) have issued a warning on the potential risks of AI-generated investment advice, which can be inaccurate or misleading, leading to poor investment decisions and financial losses. The authorities have also launched an EU-wide social media campaign, #AIInvestorAlert, to raise awareness about these risks. In addition, ESMA has fined Modefinance €420,000 for breaching the Credit Rating Agencies Regulation and has released peer review reports on the supervision of securitisations and central counterparties. The authority has also made recommendations to simplify Europe's securitisation framework and has published rules on order execution policies and ESG disclosure rules for benchmarks administrators. Other publications include the 2024 European Common Enforcement Priorities Statement, clarifications on Consolidated Tape Provider for bonds, and a spring 2025 update on risks and vulnerabilities in the EU financial system. The newsletter provides a full overview of all publications, as well as information on hearings and webinars.