MiFID Monitor Q2 2026

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1 MiFID Framework developments

1.1 Delegated Regulation on order execution policies

On 14 April 2026, the European Commission adopted a Delegated Regulation supplementing the MiFID II Directive¹ with regard to regulatory technical standards (RTS) specifying the criteria for establishing and assessing the effectiveness of order execution policies of investment firms.

The Delegated Regulation, which was made under Article 27(10) of the MiFID II Directive, is based on draft RTS developed by ESMA.

The proposed changes include:

• Specifying criteria for the selection of execution venues to maximise results when executing client orders;

• Introducing requirements for monitoring and the periodic assessment of investment firms’ order execution policies;

• Setting out rules on order routing and the use of automatic execution systems;

• Establishing safeguards for handling specific client instructions and managing conflicts of interest, including when dealing on own account;

• Requiring the identification of classes and subclasses of financial instruments to support effective assessment of execution quality;

• Repealing two previous Delegated Regulations²;

The Delegated Regulation can be accessed here.

1.2 Simplification of transaction reporting under MiFIR

On 4 May 2026, ESMA published an interim report following its June 2025 Call for Evidence (CfE) on a comprehensive approach to simplifying transaction reporting under MiFIR³, EMIR⁴ and SFTR⁵. The CfE sought to identify key cost drivers and gather stakeholder views on improving the current framework.

The issues raised in the report, such as overlapping and inconsistent requirements and fragmented reporting channels, reflect the current reporting landscape. The report expresses support for simplification principles centred on preserving information value and adopting a cost-benefit-driven approach.

Having refined its approach, ESMA will now focus on delineation by type of instrument and a “report once” model. Medium-term measures such as streamlining reporting channels, leveraging alternative technologies and reducing reporting frequency are also considered in the interim report.

The Final Report, which will incorporate recommendations and an independent cost-benefit analysis, will be published by July 2026.

The Interim Report can be accessed here.

1.3 EU code of conduct for issuer-sponsored research

On 21 May 2026, the European Commission adopted a Delegated Regulation⁶ setting out RTS on an EU code of conduct for issuer‑sponsored research under MiFID II.

The Delegated Regulation aims to revitalise EU investment research, particularly for under‑covered issuers.

Key measures include:

• A harmonised EU code of conduct (Annex to the Delegated Regulation) covering independence, conflicts, disclosures and remuneration;

• Requirements to clearly label issuer‑sponsored research;

• Obligations on firms to verify compliance before distributing such research; and

• Safeguards to ensure research objectivity, independence, and to limit issuer influence.

The Delegated Regulation establishes a consistent EU framework to support the broader use of issuer‑funded research while maintaining investor protection. It is expected to increase research coverage, improve liquidity and transparency, and impose stricter controls on distribution practices.

The Delegated Regulation can be accessed here.

1.4 Volume cap and transparency calculations

On 1 June 2026, the European Commission published a Delegated Regulation⁷ in the Official Journal of the European Union, amending RTS in a previous Delegated Regulation⁸ on the volume cap and transparency calculations under MiFIR.

The amendments reflect MiFIR II⁹, including the move from a double volume cap to a single 7% EU-wide volume cap and the use of transaction reporting data for transparency calculations.

Key changes include:

• The removal of obsolete systematic internaliser data requirements;

• The use of Article 26 transaction data for volume cap calculations and the deletion of related reporting templates;

• The use of XML format for periodic reporting, with flexible formats for ad hoc requests;

• A five-year data retention policy for trading venues, APAs and CTPs; and

• A direct reporting procedure to ESMA for derivatives and updated quarterly publication requirements.

The Regulation entered into force on 20 June 2026.

The Directive can be accessed here.

1.5 Amendments to MiFID II research provisions

On 2 June 2026, the European Commission published a Commission Delegated Directive¹⁰, which amends the MiFID II Delegated Directive¹¹ in relation to the conditions for providing third-party execution services and research to investment firms that provide portfolio management or other investment or ancillary services.

The amendments reflect changes introduced by a Directive¹² under the Listing Act package and aim to reduce administrative burdens to support the availability of research, particularly for small and mid‑cap issuers.

The proposed changes include:

• Setting conditions for firms operating research payment accounts, including funding and governance requirements;

• Introducing enhanced client disclosure obligations on research budgets, charges and annual costs;

• Establishing transparency and control requirements where firms opt for separate payments; and

• Requiring annual assessments of research quality and remedial action where deficiencies arise.

The Delegated Directive entered into force on 22 June 2026. Member States had to transpose the Delegated Directive into law prior to that date, by 5 June 2026.

No implementing measure has been published in Ireland to date, although the provisions of the Delegated Directive have applied since 6 June 2026.

The Delegated Directive can be accessed here.

1.6 Provisional agreement on Directive amending MiFID II to support small mid-cap enterprises

On 9 June 2026, the European Parliament published a press release announcing a provisional agreement with the Council on a Directive amending MiFID II to introduce a new category of small mid-cap enterprises and extend certain SME regulatory reliefs to support firms as they scale.

The European Parliament previously published a report on the proposed Directive in March 2026.

The press release explains that small mid-cap enterprises are companies with fewer than 1,000 employees and either up to €200 million in turnover or €172 million in total assets.

The changes aim to avoid “cliff-edge” increases in compliance obligations and extend simplified requirements across MiFID and other EU frameworks.

The proposal forms part of the Commission’s Omnibus IV Simplification Package and remains subject to formal adoption by the Council and the Parliament. Following publication in the Official Journal, Member States will have 15 months to implement the Directive, with a Commission review of thresholds required within five years.

The press release can be accessed here.

2 ESMA

2.1 Results of Common Supervisory Action on sustainability requirements

On 6 May 2026, ESMA published a Public Statement presenting the results of its Common Supervisory Action (CSA) with national competent authorities on the integration of sustainability into MiFID II suitability assessments and product governance processes.

The CSA, conducted over the course of 2024 and 2025, assessed the progress of intermediaries when implementing sustainability requirements introduced in 2022 under the MiFID II Delegated Acts.

ESMA finds that while firms have made progress, practices remain uneven across jurisdictions and further improvements are required, particularly in the collection of clients’ sustainability preferences and the categorisation and suitability matching of products.

ESMA also sets out interim supervisory expectations aimed at promoting consistent application while reducing operational burdens during the transition period.

Notably, ESMA encourages NCAs to adopt a proportionate supervisory approach, prioritising engagement and dialogue with firms over enforcement action, except in cases of clear breaches or misselling. 

The Public Statement can be accessed here.

2.2 Updated ESMA Opinion on multilateral systems and the trading venue perimeter

On 12 May 2026, ESMA issued an updated Opinion clarifying the scope of multilateral systems and the trading venue perimeter under MiFID II/MiFIR. The Opinion responds to inconsistent interpretations across the EU regarding which systems require authorisation as trading venues.

The Opinion, which was first published in February 2023, sets out four cumulative criteria for identifying a multilateral system:

• the existence of a system or facility;

• multiple third-party trading interests;

• the ability of those interests to interact; and

• the involvement of financial instruments.

ESMA expects national competent authorities (NCAs) to assess firms’ systems on a case-by-case basis, to engage with firms and to ensure appropriate authorisation where required.

The updated Opinion can be accessed here.

2.3 ESMA’s prioritisation of 2026 deliverables

On 2 June 2026, ESMA published a letter from its Chair, Verena Ross, to the European Commission outlining adjustments to its 2026 work programme. Amid new mandates and external pressures, ESMA wishes to prioritise resources, most notably the Market Integration and Supervision Package (MISP), and simplification objectives.

ESMA confirmed it will postpone or cancel certain regulatory deliverables and reports in cases where their value is limited or where they may be affected by ongoing legislative changes. Instead, resources will be redirected towards key priorities, including:

• New supervisory responsibilities (e.g. consolidated tape and ESG rating providers)

• Simplification and data reporting improvements

• MiCA¹³ implementation;

• T+1 transition;

• EMIR 3¹⁴,

• European Single Access Point delivery, and

• Emerging risks (e.g. tokenisation, geopolitics).

ESMA requested that, during MISP negotiations, certain recurring sectoral reporting mandates be repealed or made optional to give it greater flexibility to prioritise timely, policy-relevant analysis without reducing its overall reporting or evidence-gathering efforts.

The letter can be accessed here.

2.4 ESMA’s Annual Report 2025

On the 17 June 2026, ESMA published its Annual Report for 2025.

The report illustrates the role played by ESMA in 2025 in implementing major EU legislative frameworks, including MICA, DORA¹⁵ and EMIR 3.

Simplification and reduction of unnecessary burdens were central focuses for ESMA in 2025, and the report outlines the approaches taken by ESMA to achieve these aims.

The report also highlights ESMA’s work on digitalisation, including artificial intelligence, distributed ledger technology and decentralised finance.

The report can be accessed here.

2.5 ESMA consults on revisions to CSDR Guidelines

On 26 May 2026, ESMA launched a public consultation on proposed updates to its Guidelines on standardised procedures and messaging protocols used between investment firms and their professional clients, produced under Article 6(2) of the Central Securities Depositories Regulation (CSDR)¹⁶. This is part of a wider goal of supporting market participants in the transition to T+1, which comes into effect on 11 October 2027.

Stakeholders were invited to submit feedback until 7 July 2026. ESMA is considering the feedback received and expects to publish the final report including updated guidelines by October 2026.

The revised Guidelines are expected to apply from 7 December 2026, aligning with RTS amendments.

The ESMA Press Release can be accessed here and the consultation paper can be accessed here.

2.6 ESMA publishes updated Q&As 2026

The ESMAs Q&As were most recently updated on 28 May 2026. A key objective of ESMA is ensuring consistent application of the EU Single Rulebook for financial services. Any stakeholder or citizen can pose questions to ESMA relating to the practical application or implementation of the Single Rulebook.

While the answers provided by ESMA serve as practical guidance, they have no binding force in law.

The Q&As can be accessed here.

2.7 ESMA releases reporting templates and instructions for the Active Account Requirement

On 13 April 2026, ESMA published the reporting templates and instructions for the Active Account Requirement (AAR) reporting under EMIR 3.0¹⁷.

The new templates set out how entities subject to the AAR should report the required information to their competent authorities. The standardised templates and instructions, along with the facilitation of consistent supervisory practices, ensure efficiency in AAR reporting across the EU.

The template instructions can be accessed here.

A related press release from ESMA explains that the first AAR reporting submission is expected on 31 July 2026, covering the period from 25 June 2025 to 30 June 2026. After the first submission, reporting will take place every six months, with submissions due on 31 January and 31 July of each year.

A copy of the press release can be found here.

3 DORA

3.1 Joint-ESA Report on major ICT-related incidents

On 3 June 2026, the European Supervisory Authorities (ESAs) published their first annual report under Article 22(2) of DORA¹⁸, analysing major ICT-related incidents reported across the EU financial sector in 2025. This report considers the number of these incidents and the sectors in which they occurred, the impact on clients, transactions and financial counterparties, remedial actions and the costs incurred.

A copy of the report can be accessed here.

4 AML & CFT

4.1 AMLA consults on business-wide risk assessments and group-wide requirements

On 17 April 2026, the EU Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) published two consultation papers under the AML Regulation¹⁹ which is due to take effect from July 2027:

• consultation paper on draft guidelines on business-wide risk assessment (BWRA). The guidelines set out minimum requirements for the BWRA and the additional sources of information to be taken into account when carrying out the BWR. The consultation closes on 15 July 2026. The consultation can be accessed here.

• consultation paper on draft regulatory technical standards (RTS) on group-wide requirements and on additional measures on branches and subsidiaries in third countries. The draft RTS addresses organisational aspects related to group-wide requirements and define provisions related to information sharing among entities of a group. The RTS also provides criteria for identifying the parent undertaking in the Union in cases of two or more obliged entities in the Union belonging to a head office in a third country. It further extends group-wide requirements to structures other than groups and provides criteria to identify the parent undertaking in the Union in those cases. The consultation closed on 15 June 2026. The consultation paper can be accessed here.

4.2 AMLA consults on Home-Host Supervisory Cooperation

On 11 May 2026, AMLA published a consultation paper on draft regulatory technical standards (RTS) under MLD6²⁰. The majority of the provisions of MLD6 are required to be transposed into national law by 10 July 2027. The RTS specify the duties of home and host supervisors and establish practical arrangements for co-operation between them. The proposed draft RTS combines foundational cooperation principles with specific provisions on 

• information exchange, including obligations to share information on the supervisor’s own initiative and upon request, with specific content requirements; 

• inquiries, setting out procedures for conducting or facilitating cross-border supervisory inquiries, including roles, timelines, and post-inquiry exchanges; and 

• common approaches, enabling supervisors to, where necessary, agree on coordinated or joint supervisory activities.

The consultation paper can be accessed here.

4.3 AMLA consults on ongoing monitoring of business relationships

On 3 June 2026, AMLA published a consultation on draft guidelines setting out expectations for ongoing monitoring of business relationships and transaction activity.

The first part of the draft guidelines outlines expectations for keeping customer documents, data and information up to date, through both so called periodic and event‑driven reviews, applied in line with a risk‑based approach. It sets out the sources of information that may be used by obliged entities to update the CDD information and shares non exhaustive lists of information that obliged entities should consider and assess during periodic customer information reviews and event trigger reviews.

The second part of the draft guidelines clarifies how obliged entities should design, implement and test monitoring frameworks to detect unusual or suspicious transactions and activities. It sets out proportionate approaches, including the use of manual, automated or semi-automated processes and controls and, where appropriate, advanced analytical tools. The consultation will close on 3 September 2026.

The consultation paper can be accessed here.

5 DATA PROTECTION

5.1 EDPB consults on a Data Protection Impact Assessment template

In April 2026, the EDPB published a draft template Data Protection Impact Assessment (DPIA), subject to consultation. The publication seeks to support organisations in complying with requirements imposed under Article 35 of the GDPR. The publication addresses the following key points:

• the template is designed to help organisations structure, harmonise and evidence DPIA processes. It aims to reduce inconsistencies across Member States where different DPIA templates and guidance currently exist;

• DPIAs are required where processing is likely to result in a high risk to individuals’ rights and freedoms, including the use of new technologies, profiling, or large-scale sensitive data processing;

• the template reflects the required elements under Article 45(7) of the GDPR; including the description of processes and purposes, the assessment of necessity and proportionality, the assessment of risks and the identification of mitigating measures and safeguards;

• the use of the template is not mandatory, and organisations may continue to use their own methodologies;

• the template is supported by an explainer document to assist with completion and understanding.

The consultation closed on 9 June 2026.

The EDPB template and explainer document can be accessed here.

Footnotes

1 Markets in Financial Instruments Directive II (MiFID II), Directive 2014/65/EU

2 Commission Delegated Regulation (EU) 2017/575 of 8 June 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council and Commission Delegated Regulation (EU) 2017/576 of 8 June 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council

3 Markets in Financial Instruments Regulation (MiFIR), Regulation (EU) No 600/2014

4 European Market Infrastructure Regulation (EMIR), Regulation (EU) No 648/2012

5 Securities Financing Transactions Regulation (SFTR), Regulation (EU) 2015/2365

6 (C(2026) 3226 final)

7 Delegated Regulation (EU) 2026/392

8 Delegated Regulation (EU) 2017/577

9 Regulation (EU) 2024/791

10 Commission Delegated Directive (EU) 2026/374

11 Commission Delegated Directive (EU) 2017/593

12 Directive (EU) 2024/2811

13 Markets in Crypto-Assets Regulation (MiCA), Regulation (EU) 2023/1114

14 European Market Infrastructure Regulations 3 (EMIR 3), Regulation (EU) 2024/2987

15 Digital Operational Resilience Act (DORA), Regulation (EU) 2022/2554

16 Central Securities Depositories Regulation (CSDR), Regulation (EU) No 909/2014

17 Regulation (EU) 2024/2987amending Regulations (EU) No 648/2012, (EU) No 575/2013 and (EU) 2017/1131 as regards measures to mitigate excessive exposures to third-country central counterparties and improve the efficiency of Union clearing markets

18 Digital Operational Resilience Act (Regulation (EU) 2022/2554)

19 Regulation 2024/1624

20 Directive (EU) 2024/1640