As part of ongoing efforts to strengthen and streamline Europe’s capital markets, the European Securities and Markets Authority (ESMA) says that it’s embedding regulatory burden reduction as a continuous priority, not a one-off initiative.
In its annual work program for 2027, the regulator set out its agenda for the coming year, which is scheduled to see the implementation of several major projects, including its move to T+1 settlement, new regulation of ESG ratings providers, and stepped up oversight of industry resilience in the face of rising cyber threats.
At the same time, the regulator said that it’s adopting regulatory simplification and burden reduction as a core objective.
“ESMA is embracing the simplification agenda, reducing regulatory complexity and burden with the aim to contribute to enhancing efficiency, attractiveness and competitiveness of the EU capital markets,” it said in the paper outlining its agenda.
To that end, the regulator said that it’s seeking to eliminate duplication and obsolete requirements, make firms’ obligations more proportionate, and to focus supervision on material risks.
Key initiatives in this area include integrated transaction reporting, integrated funds reporting, simplifying the retail investor “journey” and stepping up risk-based supervision — projects that are “intended to reduce unnecessary administrative burdens, improve the usability of regulatory data and make supervision more effective.”
In the year ahead, it will also review recent reforms to make clearing markets more resilient, it said.
“This work program reflects ESMA’s commitment to strengthening the single market, protecting investors and safeguarding financial stability. It enables ESMA to remain agile in the face of volatile and risky market conditions, while responding effectively to rapidly changing needs and priorities,” said Verena Ross, chair of ESMA, in a release.
“As financial markets continue to evolve, I know that ESMA and its staff will remain focused on ensuring that EU capital markets are efficient, resilient and attractive,” she added.