ESMA Publishes Annual Work Program for 2020
ESMA published the work program for 2020. The work program sets out the work priorities and focus areas for the next 12 months. The key work of ESMA in 2020 will involve implementation of the new mandates and enhanced role in areas of direct supervision, supervisory convergence, investor protection, relations with third countries, sustainability, and technological innovation. In addition, ESMA will continue to prioritize responding to the risks and challenges posed by Brexit.
The work program highlights that the supervisory convergence priorities for year will be to implement strengthened convergence and co-ordination powers under the new founding regulation and foster exchanges on supervisory and enforcement matters. ESMA will also monitor market developments to drive the convergence initiatives for financial innovation, with focus on regulation and supervision of initial coin offerings and crypto assets, innovative fintech business models, national innovation hubs and regulatory sandboxes, and cyber security and cyber resilience. In terms of risk assessment, ESMA will focus on ensuring good use of the collected data. The risk assessment of ESMA draws on data and statistics sourced and managed through an integrated approach, ensuring high quality, efficient management, and an effective use, especially of the proprietary data that ESMA collects.
ESMA still has several regulatory tasks under the EC action plans on the Capital Markets Union, fintech, and sustainable finance. It will prioritize the areas of its single rulebook work that contribute to those action plans. ESMA will consider risks related to environmental, social, and governance related in performing its tasks. In its activities, ESMA will further incorporate proportionality in all its actions, by taking into account the nature, scale, and complexity of risks, business practices, business models, and size of the financial-sector operators and markets. ESMA will monitor the consistent implementation of the Securitization Regulation, particularly the delegated acts of EC, and consider whether any need for further guidance is necessary. ESMA will continue its registration and supervision of credit rating agencies, trade repositories, and securitization repositories, in addition to work on the recognition of third-country central counterparties and central securities depositories.
ESMA will continue to focus its supervisory work on the rating processes, the IT processes, the governance, the internal controls, and the information security, assessing the potential risks identified in these areas. ESMA will also actively monitor the implementation of requirements related to the European Single Electronic Format (ESEF) and consider if there is a need to provide further assistance to market participants. The work program also highlights that ESMA will start implementing new tasks regarding equivalence assessments of third-country regulatory and supervisory frameworks. These tasks will include monitoring and informing the European Parliament, Council, and Commission on regulatory and supervisory developments in third countries regarding which an equivalence decision has been adopted and contributing to the united, common, and consistent representation of EU interest in international fora (such as IOSCO and FSB).
Related Links
Keywords: Europe, EU, Banking, Securities, Supervisory Convergence, Brexit, Proportionality, Sustainable Finance, Single Rulebook, Fintech, Securitization Regulation, ESEF, Equivalence Assessments, Work Program, ESMA
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
IAIS Updates Timeline and Status of Insurance Core PrinciplesRelated Articles
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
FSB Reports Assess NBFI Sector and Progress on LIBOR Transition
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.