On 12 June 2026, the European Securities and Markets Authority (ESMA) published a speech by its chair, Verena Ross, entitled Priorities for European asset management: simplification, innovation, resilience and trust.

The speech touches on how:

  • Regulatory frameworks can be simplified, notably through more integrated and efficient reporting systems. As for funds reporting, ESMA is developing technical standards on reporting as mandated by the revised Alternative Investment Fund Managers Directive (AIFMD) and UCITS Directive. ESMA expects to issue a consultation paper by the end of this year and finalise the proposals in the first half of 2027.  As for simplifying transaction reporting, ESMA has identified a set of recommendations on simplification measures designed to provide relief in the short to medium term, like the revision of dual-side reporting and a target integrated reporting scenario addressing the structural sources of cost across the European Market Infrastructure Regulation / Markets in Financial Instruments Regulation and Securities Financing Transactions Regulation reporting. ESMA is validating these recommendations with a cost-benefit analysis and continues its engagement with stakeholders.
  • Digital innovation, including distributed ledger technology (DLT) and fund tokenisation, is beginning to reshape market practices. ESMA is engaging with Member State competent authorities to build supervisory knowledge, focusing in particular on real-life cases. Part of this conversation is around whether any regulatory barriers to fund tokenisation exist, including in relation to the UCITS and AIFMD regimes. ESMA is also mindful that there is an important investor protection dimension and that investors must understand the rights attached to their holdings and the risks involved. ESMA recognises that DLT may bring operational efficiencies and new opportunities for asset management. But these efficiencies must be delivered within a framework that preserves investor protection, clear accountability, operational resilience and supervisory visibility.
  • ESMA assesses the current market environment and financial stability risks, where resilience coexists with growing underlying vulnerabilities. Despite the initial market stress given events in the Middle East, markets and infrastructures have been resilient. However, close monitoring remains warranted. The nascent private credit sector (about EUR 0.1tn in AUM) has also attracted regulators’ attention. Private credit fuels development opportunities and can be an important factor in a diversified funding universe, but this needs to be balanced with consideration of financial stability risks.
  • ESMA can strengthen retail participation, by making the investor journey more accessible, more effective and more trusted. Under the Savings and Investments Union, retail investors are at the centre of the agenda. Deeper capital markets require broader participation, and broader participation will be a sustainable objective if investors feel that markets are accessible, understandable and worthy of their trust. Investor expectations are also changing. People increasingly expect a more digital, intuitive and user-friendly investment journey. The regulatory framework needs to support innovation in the investment experience, while keeping essential safeguards firmly in place. This is why the Retail Investment Strategy matters. The objective is not to add complexity but to refocus the framework on better outcomes: products that deliver value, disclosures that investors can understand and investment advice that is aligned with investors’ best interests.