RegCORE Client Alert | Capital Markets Union
QuickTake
Every year, usually during the fourth quarter, EU-level authorities such as the European Securities and Markets Authority (ESMA) publish their Annual Work Programmes (AWPs) setting out their priorities and resourcing for the coming calendar year. Some authorities, such as ESMA also publish a multi-year priority plan in what is known as a Single Programming Document (SPD). Both the AWPs and SPDs are of relevance to national competent authorities (NCAs) and more importantly to the relevant firms within the scope of ESMA's and NCA's regulatory and supervisory mandate.
On 1 October 2024, ESMA published its AWP for 2025 setting out its focus on key strategic priorities and implementation of new mandates. Its SPD for 2024-2026 was previously published on 31 January 2024 and also builds upon the longer-term "ESMA Strategy 2023-2028", which was published October 2022 . The 2025 AWP will also see ESMA publish the 2026-2028 SPD amongst a number of other documents relevant to its supervisory strategy as well as its coordination with other authorities.
The 2025 AWP also points out in numerous instances that ESMA will, within the aspects in its control, advance points raised in its Position Paper "Building More Effective and Attractive Capital Markets in the EU" (the ESMA CMU Position Paper) concerning the completion of the EU's Capital Markets Union (CMU), albeit the current (less catchy but perhaps more (national) politically palatable) rebrand as an "European Savings and Investment Union (E-SIU)".
As in previous years, ESMA's AWP is structured to address the evolving market context, legislative and regulatory changes as well as technological advancements impacting the financial services sector and those financial market participants within its mandate. ESMA, in its role as regulator is the gatekeeper of certain parts of the Single Rulebook for financial services within its mandate and tasked with regulatory and supervisory convergence amongst NCAs and across markets. Accordingly, ESMA shapes how NCAs apply the legislative and regulatory requirements as well as ESMA's expectations in the supervision of financial market participants within ESMA's mandate. That being said, ESMA also directly supervises credit rating agencies (CRAs), trade repositories (TRs), securitisation repositories (SRs), data reporting service providers (DRSPs), certain benchmark administrators EU and systemically important third-country central counterparties (CCPs). As of 2025, ESMA will begin with the selection of consolidated tape providers (CTPs), supervised as DRSPs and ESMA will, in the context of the EU's Regulation for a Digital Operational Resilience Act (DORA), equally oversee designated critical third-party service providers (CTPPs) jointly with its sister European Supervisory Authorities (ESAs), the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA).
The 2025 AWP's focus areas include effective markets and financial stability, effective supervision, retail investor protection, sustainable finance, technological innovation and the effective use of data and information and communication technologies (ICT), both by supervised firms and equally the use of supervisory technology (SupTech) by ESMA and NCAs. The 2025 AWP also sets out reforms that ESMA ("as an organisation") will carry out as well as those that it will advance together with NCAs to improve harmonisation of supervisory approaches of NCAs in the context of its (multi-)annual Peer Review Work Plan.
Overall, the 2025 AWP when compared to priorities for 2024 outlines a more comprehensive regulatory landscape that demands heightened vigilance, adaptability and proactive engagement from supervised firms to align with ESMA's strategic objectives (and as executed in supervision carried out by ESMA and/or the NCAs) for a more resilient and sustainable financial sector.
This Client Alert discusses the relevant issues and key legal and regulatory considerations for relevant market participants as well as the key differences between ESMA's 2024 and 2025 publications. This Client Alert should be read together with other thematic deep dives on reforms and developments as well as our standalone analysis of all relevant 2025 work programmes from the European Commission, the ESAs as well as those of the Banking Union authorities (ECB-SSM and SRB). Readers may also find benefit in consulting "Navigating 2025", a comprehensive playbook providing a more granular annual outlook from PwC Legal's EU RegCORE on the forthcoming regulatory policymaking agenda, the supervisory cycle and assessment of any commonalities and trends across plans for 2025 and beyond.
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.