ESMA: Challenges in Compliance and Internal Audit for EU/EEA Fund Managers

ESMA's 2025 CSA indicates that while most fund managers comply with AIFMD and UCITS requirements, gaps persist in governance, specifically regarding the independence of control functions, the quality of internal policies, and the effectiveness of senior management oversight. Firms must strengthen internal frameworks and monitor supervisory developments, given ESMA's encouragement to NCAs for follow-up and the implementation of remedial actions.