ESMA Work Programme 2026

Introduction

This month, the European Securities and Markets Authority (ESMA) published its Work Programme for 2026 (the ESMA Work Programme).

The ESMA Work Programme emphasises the expanding supervisory responsibilities that have been delegated to ESMA as a consequence of policy developments in respect of capital markets in the European Union (the EU). There are elements of the ESMA Work Programme that are relevant for investment funds and their managers and these are discussed below.

ESMA Work Programme

Similar to previous iterations, the ESMA Work Programme is structured around the implementation of ESMA's Multi-Annual Strategy for 2023-2028 (the Strategy). The Strategy established three strategic priorities, namely: (i) fostering effective markets and financial stability; (ii) strengthening supervision of EU financial markets; and (iii) enhancing protection of retail investors. The Strategy also established two thematic drivers: namely (i) enabling sustainable finance; and (ii) facilitating technological innovation and effective use of data.

Background

ESMA has noted that its activities in the coming years will be shaped by the agenda of the European Commission (the Commission) and its co-legislators in the EU. The ESMA Work Programme outlines that it aspires to support the EU's evolving regulatory agenda while further aiming to flexibly adapt to new economic and (geo)-political developments and technological innovations. Key priorities will also include contributing to the enhancement of the competitiveness of financial markets in the EU and simplifying rules to reduce reporting and administrative burdens.

By recasting the Capital Markets Union (CMU) as the Savings and Investment Union (SIU), the Commission has signalled a shift in terms of ambition and focus regarding the competitiveness and attractiveness of EU capital markets. A legislative proposal is expected by the end of 2025, addressing the integration of trading and post-trading market infrastructures, the enhancement of cross-border provision of funds and the reduction of operational barriers faced by asset managers. ESMA will work with and support the Commission in this regard.

ESMA's ongoing responsibilities as a supervisor will also grow significantly, including through the authorisation and supervision of consolidated tape providers (CTPs), external reviewers for both the European green bond (EUGB) framework and environmental, social and governance (ESG) rating providers and the extension of the supervision of third country benchmarks through the endorsement and recognition regimes under ESMA's competence.

Areas of Focus

The ESMA Work Programme outlines objectives and outputs relating to each of ESMA's strategic priorities and thematic drivers noted above. The following are of particular note for 2026:

• Simplification and burden reduction (SBR) agenda: ESMA is committed to an ambitious SBR agenda. In 2025, ESMA launched three flagship consultations in this area: (i) holistic review of transactional reporting under the Markets in Financial Instruments Regulation (MiFIR), the European Market Infrastructure Regulation (EMIR) and the Securities Financing Transaction Regulation (SFTR) (see below); (ii) integrated funds reporting review (see below); and (iii) analysis of the investor journey, whereby ESMA will engage in follow-up actions stemming from the Call for Evidence on the "retail investor journey" (published in May 2025) in the areas of investment services and crowdfunding.
• Retail investor protection: In the context of the Retail Investment Strategy (RIS), and depending on the progress of the legislative file, ESMA may in 2026 begin work on key investor protection topics such as disclosures, costs and charges and benchmarks, potentially developing related technical or convergence tools.
• Sustainable finance: ESMA will contribute to the work of the EU Platform on Sustainable Finance.
• Holistic review of transactional reporting: ESMA has developed proposals on a holistic review of transactional reporting under MiFIR, EMIR and SFTR, with the aim of removing duplications and developing a streamlined reporting system that would lead to substantial reductions in the burden of reporting.
• Integrated funds reporting review: During the course of 2026, ESMA intends to report on the integration of reporting in the context of the review of the AIFMD and UCITS frameworks.
• Issuer disclosure: In 2026, ESMA may need to provide advice and assistance to the Commission regarding a further review of the Shareholders' Rights Directive II (SRD II) and may contribute to revisions of the Taxonomy Regulation. It will also monitor the implementation of the changes to the Prospectus Regulation introduced by the Listing Act and may issue more guidance to facilitate stakeholders' adoption of the Listing Act, having regard to reporting burden and proportionality.
• SIU: ESMA will contribute to the development of new objectives that have been set for the SIU.
• NCA sanctions and administrative measures: In Q3 of 2026, ESMA intends to publish a cross-sectoral report on sanctions and administrative measures adopted by the national competent authorities of each Member State (NCAs). By Q4 of 2026, a report by ESMA, the European Banking Authority and the European Insurance and Occupational Pensions Authority (together, the European Supervisory Authorities, the ESAs) is expected to be published on the independence of NCAs.
• Sustainability: ESMA will play a key part in the Commission's efforts to streamline sustainability-related requirements by supporting the reduction of unnecessary burdens for market participants. ESMA will also seek to facilitate supervisory exchanges on the application of various guidelines, such as those on fund names and on the enforcement of sustainability reporting. ESMA plans to publish thematic notes on transition finance (in Q3 of 2026) and sustainability claims (in Q4 of 2026).
• Digital Finance: Along with other EU institutions, ESMA intends to contribute to the Supervisory Digital Finance Academy and the European University Institute to strengthen supervisory capacity in the area of digital finance.
• Investment management: ESMA will support existing legislative frameworks in the EU governing the investment management sector. As part of this, ESMA plans to publish guidelines on the suspension of dealing (i.e. subscriptions and redemptions).
• Credit rating agencies (CRAs): In 2026, ESMA will primarily focus on regulatory risks posed by CRAs' business strategies, adequacy of the analytical framework and operational set-up. As regards CRAs' operations, ESMA will focus on outsourcing practices, effective organisational arrangements, adequacy of control frameworks and compliance with the Digital Operational Resilience Act (DORA).
• MiFID II/ MiFIR/ EMIR: ESMA will work on guidance and other tools to promote supervisory convergence regarding Markets in Financial Instruments Directive II (MiFID II), MiFIR, and EMIR (including EMIR 3.0 technical standards on clearing thresholds).
• Markets in Crypto-Assets Regulation (MiCA): ESMA will be involved in developing guidelines to promote the consistency and proportionality of MiCA and will provide monitoring and analytical processes for NCAs in fulfilment of the objectives of this regulation.
• DORA: The ESAs will continue to exercise a joint oversight mandate in respect of DORA. In addition, the ESAs will continue to facilitate supervisory convergence under this legislation.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.