EU Regulators Imposed Over €71M in Sanctions in 2024, ESMA Calls for Enforcement Convergence

The European Securities and Markets Authority (ESMA) has published its first consolidated enforcement report, revealing that financial regulators across the European Union imposed over 970 sanctions in 2024, amounting to more than €71 million in fines. The penalties were mainly for violations under the Market Abuse Regulation (MAR) and the Markets in Financial Instruments Directive II (MiFID II).

The report, which covers enforcement actions from all 27 EU member states, plus Iceland, Liechtenstein, and Norway, highlights significant disparities in enforcement approaches. While some national competent authorities (NCAs) favor administrative fines, others rely on warnings or business restrictions.

“The report highlighted the need for greater convergence in sanctioning by NCAs,” ESMA stated, pointing to the lack of consistency in how financial misconduct is punished across the bloc.

Among the national regulators, Cyprus CySEC stood out by conducting over 850 audits, issuing €2.76 million in fines, and withdrawing several licenses. This signals a continued focus on investor protection and regulatory tightening.

In addition to compiling the data, ESMA took direct enforcement action last year, including sanctions against Scope Ratings GmbH for conflicts of interest and the withdrawal of licenses from several data and rating agencies.

The publication comes alongside ESMAs broader strategic objectives. In 2024, ESMA pushed forward reforms such as T+1 settlement cycle work, crypto-asset regulatory frameworks, ESG term usage in fund names, and the launch of the European Single Access Point (ESAP), expected to go live in 2026.

Looking ahead, ESMA will begin supervising ESG rating providers and EU green bond verifiers, further expanding its role as the EUs central market watchdog.