The European Securities and Markets Authority (ESMA) has published its 2023-2028 strategy, with three strategic priorities and two thematic drivers.
ESMA said the goal is to reaffirm its status as an European Union data and information hub and improve data use in financial market supervision.
The three strategic priorities include strengthening market supervision, improving retail investor protection, and fostering effective markets and financial stability.
With the first, ESMA aims to create a shared supervisory approach across the EU, standardising risk prioritisation and supervision approaches.
The regulator will also work with national competent authorities to ensure that investors are effectively protected, with a particular focus on retail investors.
It also proposed actions related to investor engagement and effective information and disclosure
As to the third priority, ESMA will continue to adapt its Single Rulebook to promote fair, orderly, and transparent markets.
ESMA’s thematic drivers cover enabling sustainable finance and facilitating technology innovation and effective data use.
Drilling down, the watchdog will incorporate ESMA’s Sustainable Finance Roadmap, seeking to improve ESG data effectiveness and integrity and provide an improved environment, social and governance (ESG) regulatory framework and supervision, while recognising the importance of retail investors in this area.
The authority will also promote innovation, maintaining fairness between traditional and emerging participants and products. It will address regulation around technology, and consider how upcoming EU legislation will affect this.
“The ESMA Strategy takes into account the rapidly changing market and geopolitical developments,” says Verena Ross, chair of ESMA.
She adds, “The established strategic goals are important to enable ESMA to continue to achieve its mission to enhance investor protection and promote orderly and stable financial markets.
Fostering effectiveness and stability of the EU markets and enhancing the protection of retail investors, and doing both through strengthened supervision, are at the core of what ESMA is all about.
The key twin drivers of sustainability and technological and data innovation are also now embedded across all areas of the organisation.”
