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On 27 May 2026, the Malta Financial Services Authority (“MFSA”) issued a circular drawing the attention of market participants to the publication by the European Securities and Markets Authority (“ESMA”) of its 2025 Corporate Reporting Enforcement and Regulatory Activities Report (the “Report”).
The Report sets out the findings of European enforcers’ examination of listed companies’ annual financial reports and identifies the common enforcement priorities that national competent authorities across the European Union and the European Economic Area will focus on in their supervisory activities. ESMA’s enforcement programme is designed to promote the consistent application of International Financial Reporting Standards (“IFRS”) and to enhance the quality of corporate reporting across European capital markets.
Enforcement Focus Areas
Whilst the circular issued by the MFSA provides a high-level notification of the Report’s publication, issuers, auditors, and other market participants are encouraged to consult the Report directly for full details of the enforcement priorities identified by ESMA. In line with ESMA’s established practice, the Report addresses, among other matters, the application of specific IFRS standards, the quality of sustainability-related disclosures under the European Sustainability Reporting Standards (“ESRS”), and adherence to the requirements of the European Single Electronic Format (“ESEF”) for digital reporting. Market participants should pay close attention to any new or recurring areas of concern highlighted by European enforcers, as these areas are likely to attract heightened scrutiny in the coming reporting cycle.
Relevance for Maltese Issuers
Maltese issuers whose securities are admitted to trading on a regulated market are therefore reminded to take due account of the priorities and findings set out in the Report when preparing their forthcoming annual financial reports. Boards of directors and audit committees, in particular, should ensure that their financial reporting processes are aligned with the standards and expectations identified by ESMA.
Stakeholders may access the full the Report through the MFSA’s circular or directly via ESMA’s website.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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