ESMA recently published its 2021 Work Programme. In addition to transversal themes key areas of focus will be:
1. Supervisory Convergence: focusing on fund liquidity risk and liquidity management tools, retail investment products costs and performance, quality and usability of data, supervision of ESG reporting and ESG data usage and EMIR implementation.
Ensure consistent application of MiFIDII (costs and charges & product governance) and facilitate common supervisory actions on suitability.
2. Risk Assessment: integrating the new focus on financial innovation and ESG into ESMA’s risk analysis. Key analytical areas are fintech/regtech, crypto-assets, AI, machine learning, ESG developments and technology risk, incl. outsourcing to cloud providers and cyber resilience.
3. Single Rulebook: legislative reviews of MiFID and AIFMD and identifying possible rulebook changes in support of the Capital Markets Union. EMIR review and the EMIR Refit changes.
4. Direct Supervision: focus on third country central counterparty supervision as critical financial market infrastructures under EMIR 2.2 and prepare for the new supervisory mandates regarding Benchmarks and Data Service Providers.