ESMA has launched a harmonised approach to funds reporting and has set a clear path towards streamlined, more efficient transaction reporting across European markets. The two reports published today are complementary pillars of ESMA’s broader simplification and burden reduction agenda, launched last year.

ESMA has published the results of its 2025 Common Supervisory Action (CSA) on the compliance and internal audit functions of fund managers, carried out in with the participation of all EU and EEA national supervisors. The EU-wide review found that most fund managers comply with key requirements under the AIFMD and UCITS framework. At the same time, the CSA identified governance weaknesses, particularly in the independence of control functions, the quality and implementation of internal policies, and the way senior management and boards exercise oversight.

Taking into account the input from stakeholders, ESMA outlines a number of actions and operational improvements it will take forward to make it easier for retail investors to access suitable investment opportunities.  

ESMA will focus on three areas:

• streamlining disclosure requirements and tackling information overload for investors;
• reducing complexity in suitability and appropriateness assessments;
• simplifying MiFID II requirements on sustainability preferences.

ESMA published its Position Paper on “Building more effective and attractive capital markets in the EU”. The Paper includes 20 recommendations to strengthen EU capital markets and address the needs of European citizens and businesses.

ESMA will focus on strengthening supervision, enhancing the protection of retail investors, fostering effective markets and financial stability, enabling sustainable finance, as well as facilitating technological innovation and effective use of data.