A report from the European Court of Auditors says that not all the ambition of the EU investment funds single market directives has been achieved. It says cross-border activities are still rate, supervision across Member States is inconsistent, investor protection is weak and systemic risks are not adequately monitored. In sum, the passport regime has not created a single market. It notes the work ESMA and the Commission have been doing to try to improve matters, but notes progress has been limited and costs remain high.
The report calls for fundamental change in the form of an overhaul of the legal framework, better convergence and investor protection and a streamlined reporting framework.