On 14 April 2026, the European Commission adopted a Delegated Regulation supplementing Directive 2014/65/EU (MIFID II), with regard to regulatory technical standards (RTS) specifying the criteria to be taken into account by investment firms when establishing and assessing the effectiveness of their order execution policies.
The Delegated Regulation is based on ESMA’s final draft RTS published in April 2025. The RTS specify rules on, among other things: (i) selecting execution venues; (ii) monitoring investment firms’ execution policies; (iii) order routing; (iv) the handling of specific client instructions and related investor protection safeguards; (v) the periodic assessment of investment firms’ order execution policies; and (vi) how to identify classes and subclasses of financial instruments for which the investment firms execute orders on behalf of clients.
When the Delegated Regulation enters into force, it will repeal Delegated Regulation (EU) 2017/575 which sets out data to be published by execution venues on the quality of execution of transactions on their venues and Delegated Regulation (EU) 2017/576, which sets out obligations for investment firms to publish information on the identity of execution venues and the quality of execution obtained.
The Delegated Regulation will enter into force on the 20th day following its publication in the Official Journal of the European Union. It will apply 18 months after entry into force, allowing firms time to update their order execution policies, procedures and systems.
On 30 April 2026, ESMA published a call for evidence (CfE) presenting a data driven analysis of the evolution of trading in European equity markets between 2022 and 2025, based on MIFIR transaction reporting data.
The CfE invites stakeholder feedback on observed trends and their potential regulatory implications. The analysis shows that European equity markets continue to function well overall:
At the same time, ESMA observes a decline in lit continuous trading between 2022 and 2025. This decline has been offset by increased activity in other trading mechanisms, mainly closing auctions, frequent batch auctions and systematic internaliser (SI) trading.
The paper also analyses how liquidity is allocated across different trading mechanisms on a country‑by‑country basis and seeks input on the concept of addressable liquidity and its treatment under RTS 1, including possible adjustments to the post‑trade transparency flagging framework.
Besides the CfE, ESMA takes the opportunity to inform stakeholders of the repeal of the Q&A clarifying that periodic auctions are subject to the tick-size regime.
ESMA invites stakeholders’ views on the functioning of European stock markets by 30 June 2026, and will issue a feedback statement in the second half of 2026 on this call for evidence.
ESMA will continue monitoring market developments, considering recent MIFIR changes, including the move to a single volume cap and enhanced SI transparency obligations, as well as on different types of trading mechanisms such as closing auctions.
On 6 May 2026, ESMA issued a statement presenting the results of its Common Supervisory Action (CSA) on how sustainability is integrated into firms’ suitability assessment as well as into processes and procedures for product governance.
The statement highlights key themes emerging from the supervisory exercise and sets out high‑level interim supervisory expectations, notably in relation to:
ESMA reaffirms the importance of sustainability and encourages firms to continue implementing the MIFID II sustainability requirements, recognising that the CSA has been conducted at a time when the sustainable finance framework is undergoing significant revision.
In view of these developments, and reflecting ESMA’s strategic priority of promoting simplification and reducing undue burden, ESMA invites national competent authorities to adopt a proportionate supervisory approach. This includes fostering dialogue with firms during the transition period, rather than prioritising enforcement actions, without prejudice to cases involving clear breaches or mis‑selling.
ESMA will consider the results of this work for any future updates of the MIFID II Delegated Acts on sustainability and the related ESMA Guidelines, with the aim to simplify the framework and support more consistent and effective application.
On 13 April 2026, ESMA published the reporting templates and instructions for the Active Account Requirement (AAR) reporting under European Market Infrastructure Regulation (EMIR 3).
The new templates set out in detail how entities subject to the AAR should report the required information to their competent authorities. Through this development, ESMA aims to ensure a harmonised and efficient approach to AAR reporting across the EU, providing standardised templates and clear instructions while facilitating consistent supervisory practices.
The first AAR reporting submission is expected on 31 July 2026, covering the period from 25 June 2025, when the AAR became applicable, to 30 June 2026.
Thereafter, reporting will take place on six months basis, with submissions due on 31 January and 31 July each year, each covering a twelve‑month reference period.
On 4 May 2026, ESMA launched a harmonised approach to funds reporting and has set a clear path towards streamlined, more efficient transaction reporting across European markets.
The two reports published today are complementary pillars of ESMA’s broader simplification and burden reduction agenda, launched last year.
Final Report on the integrated collection of funds’ data
In the report, ESMA sets out a strategic move away from fragmented national reporting towards a common EU reporting framework, centered on a common and single reporting template designed to remain proportionate for different fund sizes and investment strategies, while meeting supervisory needs. The aim is to reduce duplication, improve data consistency and enhance the usability of data for authorities.
To support this approach, ESMA outlines a hybrid operational model, under which data validation, storage and analytics would be organised at EU level, while data collection would remain at national level. By facilitating data sharing across authorities, the centralised hub will offer efficiency gains not only for authorities but will also contribute further to burden reduction by limiting duplicative data requests.
Next steps on funds reporting include the development of regulatory and implementing technical standards (RTS, ITS), that will be presented next year. After that, the implementation of the new template and the rest of recommendations will be gradually introduced, with the first phase focusing on the integration of reporting under AIMFD and UCITS, and the second phase that would expand the integrated framework to other reporting obligations.
Interim report on the holistic review of transaction reporting
Based on the feedback received from more than 100 respondents to the previous call for evidence on transaction reporting simplification, ESMA has identified the main challenges in the current reporting frameworks, and the most promising approaches to overcome them: instrument‑based and dual-side simplifications and the implementation of a “report once” framework across EMIR, MIFIR and SFTR in the long term.
Most respondents indicated that overlapping and inconsistent reporting requirements, frequent and unsynchronised regulatory changes, fragmented reporting channels and dual reporting are major drivers of cost and complexity.
Considering the need to perform a thorough cost-benefit analysis, the report does not contain policy recommendations yet. As part of the next steps, ESMA will further engage with markets participants, including through an open hearing that will be held on 28 May, before moving forward with final recommendations to be published by mid-year.
On 16 April 2026, the EU Authority for Anti Money Laundering and Countering the Financing of Terrorism (AMLA) launched two consultations on draft measures setting out requirements for business wide risk assessments (BWRAs) and group wide anti-money laundering and countering the financing of terrorism (AML/CFT) frameworks under the EU Anti Money Laundering Regulation (AMLR).
The first consultation specifies draft regulatory technical standards (RTS) under Articles 16(4) and 17(3) of the AMLR, setting minimum standards for the design and implementation of group wide AML/CFT frameworks. They address organisational aspects of group wide AML/CFT requirements, provisions on information sharing within groups, criteria for identifying the parent undertaking in the Union where multiple obliged entities are linked to a third country head office, and the extension of group wide requirements to structures other than groups (which is particularly relevant to the non-financial sector). The draft RTS also cover additional measures and requirements where branches or subsidiaries operate in third countries. AMLA proposes a single set of RTS to cover both Article 16(4) and Article 17(3) mandates. The deadline for comments is 15 June 2026, with a public hearing scheduled for 20 May 2026. Feedback will be considered with the final draft RTS due to be submitted by 30 September 2026.
The second consultation covers draft guidelines under Article 10(4) AMLR, specifying the minimum requirements for the content of obliged entities’ BWRAs and additional sources of information to be considered when carrying out the BWRA. The guidelines are intended to assist with identifying and assessing risks of AML/CTF and the non-implementation and evasion of targeted financial sanctions. To this end, AMLA proposes four minimum requirements applicable across all sectors, while emphasising that obliged entities retain responsibility for ensuring their BWRA is proportionate to their size, business model, complexity and risk profile. The deadline for comments is 15 July 2026, with a public hearing scheduled for 28 May 2026. AMLA will consider feedback and issue the final guidelines in Q4 2026.
On 5 May 2026, ESMA launched a consultation on a new approach to updating the parameters for stress test scenarios under the Money Market Funds framework.
ESMA proposes replacing the current annual amendments to Section 5 of the Guidelines with an annual web-based publication of the calibration parameters.
The Guidelines would continue to define the stress testing framework and methodology, while the website would serve as a single point of access for the latest annual calibrations.
The proposed approach aims to simplify the update process and improve accessibility, allowing market participants to apply updated parameters immediately after approval. It is also intended to reduce compliance and supervisory burdens, in line with ESMA’s Simplification and Burden Reduction (SBR) initiative.
Feedback should be submitted by 6 August 2026. ESMA will then consider the feedback received and expects to publish the corresponding final report in H2 2026. The new procedure for the update of the parameters will apply with the next update, which is expected at the end of 2026.
On 7 May 2026, ESMA published its Report on 2025 Corporate reporting enforcement and regulatory activities. The report provides an overview of how national enforcers and ESMA supervised corporate reporting across the European Economic Area (EEA) during 2025.
In 2025, financial reporting enforcement continued to promote disclosures that are material, transparent, entity specific, and useful for decision‑making. In sustainability reporting, this was the first year of enforcement of the European Sustainability Reporting Standards (ESRS) for in-scope jurisdictions, alongside the application of the ESMA Guidelines on Enforcement of Sustainability Information (GLESI). Digital reporting remained a supervisory priority, as enforcers worked on improving the quality, consistency, and usability of marked up financial information in ESEF.
Addressed primarily to issuers, auditors, and investors, the report offers practical messages from enforcement experience to help strengthen the quality and transparency of corporate reporting going forward. It presents enforcement activities in financial reporting, sustainability reporting, and digital reporting under the European Single Electronic Format (ESEF) and assesses issuers’ compliance with ESMA’s 2024 European Common Enforcement Priorities (ECEP).
On 21 April 2026, the European Commission adopted two Delegated Regulations supplementing the Environmental, Social and Governance (ESG) Ratings Regulation (EU) 2024/3005 on the transparency and integrity of ESG rating activities.
Both Regulations are based on the final draft RTS published by the European Securities and Markets Authority in October 2025. They will enter into force on the 20th day following publication in the Official Journal of the European Union and will apply from 2 July.
The first Delegated Regulation sets out regulatory technical standards (RTS) on the separation of ESG rating activities from other business activities carried on by ESG rating providers. It specifies the measures and safeguards applicable where a derogation from the separation requirement is relied upon, to prevent conflicts of interest. In particular, providers must establish separate organisational structures and working environments for staff involved in the rating process from any activities listed in Article 16(1) of the ESG Ratings Regulation. Staff will also require regular self declarations confirming non involvement in those activities. Additional technical and internal control measures apply where providers intend to carry on investment services and/or insurance or reinsurance activities, with further safeguards for those that provide, or intend to provide, benchmarks.
The second Delegated Regulation sets out RTS on the information ESG rating providers must disclose to the public and to users of ESG ratings, rated items and issuers. It specifies the content, structure and presentation of disclosures under Annex III of the ESG Ratings Regulation, including product-level disclosures on what risks and impacts are assessed, as well as the methodologies, models and the assumptions used. The Delegated Regulation also establishes a higher level of methodological disclosures for users and rated items.
On 29 April 2026, ESMA launched a public consultation on draft guidelines on endorsement under the ESG Ratings Regulation.
The consultation paper sets out ESMA’s proposed approach to the endorsement of non-EU ESG ratings under the regulatory framework and seeks feedback from ESG rating providers and other stakeholders on the draft guidelines.
The guidelines aim to support the consistent application of the endorsement regime, in particular, by providing guidance on the information to be submitted as part of an ESG Rating Provider’s application to endorse ESG ratings.
By consulting publicly, ESMA is seeking input on the proposed guidelines to ensure the guidance is clear, proportionate and workable in practice, while remaining aligned with the objectives of the ESG Ratings Regulation.
The consultation is open 29 May 2026. The feedback received will be considered by ESMA in the finalisation of the guidelines.
Following the consultation, ESMA will assess the responses and decide on the final form of the guidelines, in line with its mandate under the ESG Ratings Regulation. Further information on the outcome of the consultation and the adoption of the guidelines will be communicated before the end of July 2026.
On 24 April 2026, the Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) published its Annual Report for 2025, setting out the main priorities and achievements of its cross-sectoral work over the past year.
In 2025, the Joint Committee focused on protecting consumers in increasingly digital financial markets, strengthening operational and cyber resilience through the implementation of the Digital Operational Resilience Act (DORA), improving the effectiveness of sustainable finance disclosures, and enhancing cross-sectoral risk monitoring.
Chaired by the European Insurance and Occupational Pensions Authority (EIOPA), in 2025, the Joint Committee continued to act as a key coordination platform, supporting close cooperation and information exchange between the ESAs, the European Commission and the European Systemic Risk Board (ESRB).
The Joint Committee also advanced a range of other cross-sectoral initiatives, including work to enhance the EU securitisation framework, progress on the European Single Access Point (ESAP), and support for financial innovation through the European Forum for Innovation Facilitators (EFIF).
In line with the European Commission’s priorities, the Joint Committee further contributed to efforts to simplify the EU financial regulatory framework and reduce unnecessary complexity, notably in the areas of sustainable finance and packaged retail and insurance-based investment products (PRIIPs).
On 2 April 2026, CySEC issued Circular C768 (the ‘Circular’), to draw the attention to the Regulated Entities to the legislative requirements governing the content of the Annual Report of Alternative Investment Funds (‘AIFs’) and Alternative Investment Funds with Limited Number of Persons (‘AIFLNPs’).
With reference to specific legal provisions, CySEC highlights the following obligations through the Circular, that are summarised herein below for your ease of reference.
CySEC expects Regulated Entities to take the above into consideration and conduct their own assessment to ensure compliance with these provisions.
Circular C773: UCITS’s and AIFs’ Depositaries (CyDEPs’) role and 2026 supervisory
On 24 April 2026, CySEC issued Circular C773 (the ‘Circular’), in order to inform the Regulated Entities, i.e. Cyprus Investment Firms, Cyprus Credit Institutions and “Other Institutions” that are appointed as UCITS’ and AIFs’ Depositaries (hereinafter referred to as ‘CyDEPs’) of its supervisory intentions for the year 2026. CySEC also highlights the fundamental role and responsibilities of Depositaries in the field of collective investment management, which is also why Cyprus Investment Fund Managers are addressed as secondary recipients (cc’d) in this Circular.
Depositaries are identified as a key pillar for the protection of investors and the safeguarding of the integrity of Investment Funds. To this end, CySEC emphasises that the independence of the Depositary from the Investment Fund Manager is of utmost importance.
In this context, CySEC has recently invited a number of CyDEPs to present their Depositary activities, including the procedures, mechanisms and controls applied, in accordance with the applicable legislative framework. The content of the relevant letter addressed to CyDEPs, including the Annex, which formed the basis for the preparation of the presentations, is included in the Circular.
Furthermore, CySEC plans to initiate targeted thematic reviews during 2026 on a sample of CyDEPs. These reviews are expected to focus on:
CySEC expects all CyDEPs to proactively assess their current arrangements and ensure that their framework is fully aligned with the applicable regulatory requirements. Where weaknesses or deficiencies are identified, they are expected to take prompt remedial action to ensure full compliance with their obligations.
Circular C774: AMLA’s public consultations regarding the draft GLs under article 10(4) of Regulation (EU) 2024/1624 and the draft RTSs under articles 16(4) and 17(3) of Regulation (EU) 2024/1624
On 27 April 2026, CySEC issued Circular C774 (the ‘Circular’), to inform the Regulated Entities that the Anti-Money Laundering Authority (the ‘AMLA’) has launched public consultations regarding the following Draft Regulatory Technical Standards (RTS):
The AMLA welcomes responses on the consultation papers from all stakeholders, including obliged entities in the non-financial sector.
Through the Circular, CySEC urges all Regulated Entities to respond to the consultation papers.
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