A report by the European Securities and Market Authority has praised Luxembourg financial regulator CSSF for robust supervision of fund depositaries, particularly with regard to on-site inspections and enforcement measures. However, Esma has urged the regulator to implement tighter controls over the delegation of oversight functions, warning that excessive delegation could compromise the fundamental responsibilities of depositaries. The peer review, which examined supervisory practices in five EU member states, has underscored the need for greater consistency across the EU to enhance investor protection and safeguard financial stability.

Source: Delano