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The European Securities and Markets Authority (ESMA) has published its strategy for the upcoming five years. The 2023-2028 strategy has been developed against the backdrop of a challenging economic and political situation and sets ESMA’s long-term priorities.
Considering the rapidly changing environment and various challenging factors such as the uncertain economic outlook, potential changes in EU legislation, the need for different energy sources and the reappearance of higher inflation, ESMA has centred its strategy around five key elements that are divided into three priorities and two thematic drivers.
The objective of the 2023-2028 strategy is to continue ESMA’s mission to enhance investor protection, promote orderly financial markets and safeguard financial stability.
We have summarised the key takeaways for you below.
In order to make the financial markets more efficient and resilient, ESMA will rely on the following measures:
In order to make a contribution toward strengthening the stability of the financial system, ESMA will focus on:
In collaboration with the National Competent Authorities (NCAs), ESMA will work to strengthen supervision across the EU single market in a proportionate and cost-efficient manner. As part of the strategy, ESMA highlights its ambition to achieve a common EU supervisory culture, risk prioritisation and the convergence of supervisory approaches and outcomes by ensuring a consistent understanding and application of the rulebook. ESMA will also enhance its role as a direct supervisor while focusing on effective coordinated supervision across the EU financial markets.
To ensure that retail investors are effectively protected, ESMA will concentrate its efforts on risks that arise in connection with new and innovative products or services such as crypto-assets and non-fungible tokens as well as risks stemming from the distribution of complex products as well as alternative marketing and distribution channels (e.g. social media advertising).
ESMA’s aim is for retail investors to be provided with clear, reliable and understandable information. Further, it will focus on enabling retail investors’ participation in the capital markets and enhancing financial literacy.
ESMA will support the transition to a more sustainable economic and financial system by adopting a holistic view across the sustainable investment chain. ESMA’s goal, therefore, is to increase transparency, work on investors’ confidence in ESG investments and set up supervisory approaches such as sustainable disclosures.
ESMA will work together with the NCAs to ensure that the technological innovations affecting the financial markets are covered by robust EU rules. ESMA will therefore focus on assessing the impact of technologies on the existing regulatory framework and implementation of the upcoming EU legislation. The 2023-2028 strategy highlights the following ESMA objectives:
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