Towards a new regulatory framework for financial market players in Europe?

A European strategy for the medium term

Towards a new regulatory framework for financial market players in Europe

The European Securities and Markets Authority (ESMA) is one of the bodies responsible for supervising and harmonizing financial markets in Europe. Its aim is to ensure cohesion between the various economic players in European territories, as well as their consumers. ESMA’s Supervisory Board is made up of representatives from each member country of the European Union, among others. 

ESMA is one of three bodies responsible for overseeing the homogeneity of international economic practices in European territories. In addition, there is also the European Banking Agency, and the European Insurance and Occupational Pensions Authority, and all three bodies are responsible for monitoring best practice in European financial markets. 

The European Securities and Markets Authority (ESMA) has published a summary of its tasks for 2023-2028 with regard to data processing strategy. With a view to harmonizing relations between consumers and financial organizations, the regulator is asserting its role in data collection and protection.  

forex esma

In other words, ESMA’s aim is to reorganize the systems for collecting and sharing information relating to the consumer-broker relationship in European financial markets. Its aim is to make brokers’ duties towards both the regulator and their clients clearer and more transparent. In particular, by implementing a new methodology, ESMA aims to increase and optimize the accessibility and transparency of information at all levels, by developing cooperation between financial market players. 

Applications and consequences for European traders 

Retail investors on trading platforms regulated in Europe will in principle be better protected by these directives, particularly with regard to the processing of their data and their vulnerability and suitability to consume complex financial products.

ESMA acts as a harmonizing authority for regulators in Europe, such as CySEC in Cyprus. In 2022, ESMA had already published recommendations concerning the practices of the Cypriot regulator, in particular on the supervision of the cross-border activities of investment firms and other financial players registered in Cyprus. These recommendations concerned the establishment of investigative work and the development of appropriate sanctions against practices that do not comply with European directives, to be implemented by CySEC. 

The implementation of new measures by ESMA will have an impact on smaller-scale regulators, as well as on the compliance of financial organizations responding to a regulatory framework. By fostering cooperation between brokers and regulators, the aim is to make trading more honest for all parties. 

France’s Autorité des Marchés Financiers (AMF) has also presented its strategic orientations for 2023-2027, and it appears that one of the priorities is to ensure the protection of consumers of financial products, particularly when it comes to the investment advice provided to them. The AMF, like national regulators in Europe, will nevertheless have the task of developing its missions in the light of ESMA directives. 

Financial Fraud Lawyers to defend the interests of investors on regulated platforms

Our European network of lawyers specializes in representing and defending retail traders. We work to ensure that the rights of retail investors are respected, particularly in view of the spread of non-compliant commercial practices based on the principle that “customer losses are brokers’ profits”.

• Do I have any rights when I trade?

As long as you choose a broker recognised by the relevant financial authorities, you have the same rights and duties as your broker. It is therefore important to check the legitimacy of the broker you plan to trade with. If you choose an “offshore” broker, there is nothing tangible to guarantee your protection as a consumer.

• How to detect abuses?

Typically, abuse and non-compliant practices involve constant solicitation by brokers’ sales representatives and promises of sure gains. Both elements contribute to trader manipulation.

• Why should you get legal representation?

Only a lawyer specialised in trading law will be able to represent you and defend your rights in judicial or extrajudicial proceedings. Collection agencies and other alternative recovery methods are not synonymous with legal expertise.

• What can our lawyers do in your situation?

Depending on your specific situation, Financial Fraud Lawyers will suggest the most appropriate solution. From alternative (out-of-court) dispute resolution to criminal proceedings, we can advise you on the most appropriate course of action for your situation.


The Financial Fraud Lawyers network aims to inform private investors (traders) of potential malpractices by Forex and CFD brokers. Our mission is to assist and protect traders when they encounter brokerage practices that go against their interests. 

Our articles are intended to warn, share and inform the public about the legal risks of Forex and its players. Trading financial products and CFDs as well as investing on online platforms carry legal risks. 

The article was written in good faith, based on public information and client testimonials valid at the time of publication. Our articles concern the protection of the interests of individuals on online investment platforms and are published in accordance with our right to inform the public about our activity. This article is not to be considered legal advice.

If you feel that your broker is liable for your losses, please contact us and we will provide you with a free preliminary analysis of the case.


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