Featured Product

    ESMA Sets Out Work Priorities for 2022

    September 28, 2021

    The European Securities and Markets Authority (ESMA) has published the 2022 annual work program, which sets out work priorities for the next 12 months. The key focus areas for 2022 include the exercise of new, and existing, supervisory powers for benchmarks, data service providers, and central counterparties (CCPs); contribution to development of the Capital Markets Union, sustainable finance, and digitalization; and convergence of supervisory and regulatory practices across European Union. ESMA will also continue to monitor the impact of Brexit on the evolution of European Union and global capital markets.

    The following are the key highlights of the priorities for 2022:

    • Capital Markets Union—ESMA plans to contribute to developments in the regulatory and supervisory framework supporting the development of European capital markets, notably through its work on the European single access point (ESAP), retail investment strategy, and EC initiatives to facilitate small and medium enterprise (SME) access to public markets
    • Sustainable finance—ESMA intends to develop rules on environmental, social, and governance (ESG) disclosures and risk identification methodology for ESG factors, contribute to the work on non-financial reporting, and work with national authorities to prevent the risk of greenwashing.
    • Innovation and digitalization—ESMA intends to contribute to the implementation of the Digital Operational Resilience Act (DORA), the Markets in Crypto Assets Regulation (MiCA), and the regulation on a pilot regime for market infrastructures based on distributed ledger technology. ESMA also plans to further its understanding of the impact of financial innovation on capital markets and foster a coordinated approach, and work with national competent authorities and market participants to counter cyberthreats and other operational risks.
    • Supervisory Convergence—ESMA will continue to contribute to a sound and efficient Single Market in the European Union by promoting supervisory convergence focused on supervisory outcomes and using innovative tools. ESMA prioritizes its supervisory convergence activity through risk-driven assessments and its commitment to consumer protection. ESMA will assess the results of Union Strategic Supervisory Priorities and will thoroughly review its supervisory convergence toolkit. ESMA will deliver peer reviews on supervision of investment firms cross-border activities, national competent authorities’ handling of Brexit-related relocations, implementation of simple, transparent, and standardized (STS) criteria, and supervision of CCPs’ business continuity under remote working arrangements.
    • Risk Assessment—ESMA will strengthen its risk identification work and co-operation with national competent authorities and EU and international public authorities. ESMA will further intensify the use and analysis of its proprietary financial market data. ESMA will also support stress-testing for risk identification and supervisory responses to financial stability risks. ESMA will continue to evaluate the benefits and risks of financial innovation and ESG developments on financial markets and investors.
    • Single Rulebook—ESMA will continue to develop as a source of expertise and strategic direction on financial market regulation recognized by its stakeholdersthe European Union institutions, market participants, investors, and citizens. As part of this development, ESMA will continue its efforts to be more proactive, by identifying potential shortcomings in regulations, and offer advice on the strategic direction of the regulatory agenda.
    • Direct Supervision—ESMA will continue to prioritize the areas where it has been entrusted with supervisory responsibilities notably for Credit Rating Agencies and Securitization and Trade Repositories. In 2022, it will additionally focus on the new entities coming under its direct supervision—critical benchmarks, Data Reporting Service Providers and Tier 2 CCPs—and play an important role in the oversight of critical market infrastructures.  


    Related Links

    Keywords: Europe, EU, Banking, Securities, Sustainable Finance, ESG, Disclosures, Capital Markets Union, Single Rulebook, Brexit, Operational Risk, Regtech, DORA, ESMA

    Related Articles

    FINMA Approves Merger of Credit Suisse and UBS

    The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.

    March 21, 2023 WebPage Regulatory News

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News

    APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.

    March 07, 2023 WebPage Regulatory News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News

    MFSA Sets Out Supervisory Priorities, Issues Reporting Updates

    The Malta Financial Services Authority (MFSA) outlined its supervisory priorities for 2023

    March 02, 2023 WebPage Regulatory News

    German Regulators Issue Multiple Reporting Updates for Banks

    Deutsche Bundesbank published the nationally deactivated validation rules for the German Commercial Code (HGB) users on the taxonomy 3.2, which became valid from December 31, 2022

    March 02, 2023 WebPage Regulatory News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8806