The European Securities and Markets Authority's Strategic Priorities for 2026

It will continue to deliver on its core mandates while expanding its role in response to new legislative initiatives and supervisory responsibilities. The authority has identified three strategic priorities:

1. Fostering effective markets and financial stability
2. Strengthening supervision of EU financial markets
3. Enhancing the protection of retail investors

These priorities are underpinned by two thematic drivers: enabling sustainable finance and facilitating technological innovation.

Key takeaways

Priority 1: Fostering effective markets and financial stability

• ESMA will support the development of a proportionate and effective Single Rulebook, contributing to the Savings and Investments Union strategy and simplifying regulatory frameworks to reduce burdens on market participants.
• ESMA will publish its biannual Trends, Risks and Vulnerabilities reports as well as market reports on costs and performance of retail investment products, prospectuses, carbon markets and crowdfunding.
• Risk monitoring will be enhanced through the Joint Monitoring Mechanism, which ESMA now chairs, focusing on the resilience of third-country central counterparties (CCPs) to adverse market developments and potential risks arising from the interconnectedness of financial market participants.
• ESMA will contribute to and coordinate a wide range of activities in conjunction with other EU and international bodies, such as the ESRB and FSB, on a wide range of topics, including non-bank financial intermediation, stress testing, resolution, crypto assets and financial innovation.

Priority 2: Strengthening the supervision of EU financial markets

• ESMA will expand its direct supervision to include ESG rating providers, external reviewers of European Green Bonds and Consolidated Tape Providers for bonds and equities.
• ESMA will continue to set Union-wide Strategic Supervisory Priorities to support and coordinate the activities of national supervisory bodies and to prioritise convergence activities.
• To foster and monitor NCA’s supervisory independence, ESMA – working alongside the other European Supervisory Authorities (ESAs) – will conduct a joint assessment based on the supervisory independence criteria published in 2023.
• ESMA will also publish a cross-sectoral report on sanctions and a joint ESA report on supervisory independence, contributing to consistent enforcement across the EU.

Priority 3: Enhancing the protection of retail investors

• ESMA will continue to monitor retail investor trends and risks, issuing warnings and opinions on high-risk products and practices.
• It will contribute to the Retail Investment Strategy, potentially developing technical standards and convergence tools on disclosures, costs, charges and benchmarks.
• ESMA will promote clearer disclosures and simplification in retail financial services, supporting long-term retail participation in EU capital markets.

Thematic drivers

In addition to the strategic priorities, ESMA has set two thematic drivers to help focus its attention on underlying, long-term trends that are shaping society. In choosing these themes, they take into account the fundamental changes in financial markets driven by the growing importance of sustainability and accelerating technological innovation.

Thematic Driver 1: Enabling sustainable finance

ESMA will support the Commission’s efforts to streamline sustainability-related requirements, reduce unnecessary burdens and improve the effectiveness of the regulatory framework.

ESMA will bolster investors’ confidence in ESG-related investments by promoting high-quality sustainability disclosures and tackling the risk of greenwashing.

Thematic notes on transition finance and sustainability claims will be published to guide market participants and supervisors.

Thematic Driver 2: Facilitating technological innovation

• ESMA will publish reports on integrated fund and transactional reporting under MiFIR, EMIR, and SFTR.
• Under MiCA, ESMA will implement the second phase of its crypto market monitoring solution.
• ESMA will explore the potential to improve operational efficiency by monitoring and evaluating the integration of technological solutions, such as artificial intelligence.

What does this mean for you?

For regulated entities, ESMA's priorities and thematic drivers should serve as a roadmap for shaping their internal compliance and risk strategies. Taking a forward-looking approach now will help avoid the rush to meet new requirements later. Institutions should evaluate their current position against ESMA's strategic goals, identify any gaps and develop a structured plan to address them. Aligning early with these priorities will not only make compliance smoother but also strengthen operational resilience in the long run.

How can we help?

At Forvis Mazars, our Prudential Risk experts recognise that regulations remain a pivotal driver of financial institution’s strategic priorities. Our team excels at helping clients within the financial services sector to navigate the intricate web of regulations, identify their obligations and develop strategies for full compliance.