The European Securities and Markets Authority, Esma, on Thursday posted its 2024 work programme, emphasising digital and green transitions against a backdrop of economic challenges including inflation and geopolitical strains.
Esma said it plans to reinforce its market and risk monitoring efforts and support the European regulatory framework’s implementation, particularly in digital and sustainability sectors. This is in line with the regulator’s aim to address challenges for the European Union and its citizens, including investors.
No surprise
Esma’s focus on green and digital comes as no surprise. Esma chair Verena Ross has repeatedly identified the industry’s sluggish response to digitalisation and “greenwashing” as barriers to progress, most recently at a speech in Germany. Speaking in Luxembourg earlier this year, she also urged investment funds to pay more attention to interest risks.
Ross, in a statement issued on Thursday, mentioned the impending changes within the EU, notably with the EU elections scheduled for next Spring. «2024 will be an important year for the European Union as a whole, with a new Parliament and Commission following the elections next June. ESMA will engage with and support them in determining the priorities for the next legislative period, providing technical advice and input on the different legislative initiatives across our remit.”
The implementation of a number of significant legislative projects will shape Esma’s work and responsibilities in 2024. Esma also referred to the finalisation of the crypto assets regulatory framework under MiCA and the preparations with national authorities for the new regime will be important to contribute to enhancing investor protection in the crypto market. The authorisation of the first Consolidated Tape Providers will increase transparency and foster a single data source across the EU’s financial markets.
Key Esma initiatives for 2024:
- Green Transition: Esma will develop guidelines for sustainable finance in line with the European Green Bond Regulation. It will also release a report on greenwashing, suggesting measures to address it.
- Digital Finance: Esma will work on technical standards related to the MiCA regulation and the Digital Operational Resilience Act (Dora).
- Investor Protection: Esma will focus on mandates from reviews of the Alternative Investment Fund Managers (AIFMD), Central Securities Depositories Regulation (CSDR), and Undertakings for Collective Investment in Transferable Securities (Ucits) Directives. Other mandates might arise from evaluations of the European Market Infrastructure Regulation (Emir) and the new Listing Act.
- Retail Investment: Esma will play a role in the Retail Investment Strategy’s final stages. It will also assess the National Competent Authorities (NCAs) in supervising cross-border operations of investment entities and coordinate communication efforts with NCAs.
- Tech Initiatives: With the Digital Operational Resilience Act (Dora) set for 2025, Esma will adjust its supervisory frameworks. It will also start the process of selecting Consolidated Tape Providers (CTPs) in the EU and work on infrastructure developments to improve data quality and analytical capabilities.