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The European Commission has launched a call for expressions of interest for the appointment of members to the Board of Appeal of the three European Supervisory Authorities (EBA, EIOPA, ESMA), aiming to establish a reserve list.

LX20The establishment of a reserve list for the Board of Appeal is relevant for supervised entities, as the Board is the body competent to rule on appeals against ESA decisions. Its composition and the selection process of appealers ensure independence and impartiality, crucial elements for protecting the rights of regulated entities.

ESMA published the results of its 2025 Common Supervisory Action (CSA), highlighting areas for improved supervisory convergence regarding compliance and internal audit functions within fund managers.

LX20ESMA's 2025 CSA indicates that while most fund managers comply with AIFMD and UCITS requirements, gaps persist in governance, specifically regarding the independence of control functions, the quality of internal policies, and the effectiveness of senior management oversight. Firms must strengthen internal frameworks and monitor supervisory developments, given ESMA's encouragement to NCAs for follow-up and the implementation of remedial actions.

ESMA publishes its 2025 Report on Corporate Reporting Enforcement and Regulatory Activities in the EEA, focusing on financial, sustainability (ESRS), and digital (ESEF) reporting.

LX20The ESMA report highlights intensified enforcement activity on corporate reporting in 2025, with a focus on material, transparent, and useful disclosures. Issuers must adopt a rigorous approach to financial reporting, and for the first time, fully comply with ESRS, as well as ensure the quality and usability of ESEF information. The application of GLESI requires careful evaluation and implementation of sustainability policies.

ESMA has launched a call for evidence on European equity market structures, analyzing MiFIR data from 2022 to 2025 and inviting feedback on observed trends and regulatory implications.

LX20ESMA's CfE indicates overall stability in equity markets despite a decline in 'lit continuous' trading, offset by increased activity in alternative mechanisms (closing auctions, frequent batch auctions, SIs). The discussion on addressable liquidity and RTS 1, including post-trade transparency, is crucial. Market participants should assess the impact of MiFIR changes and future regulation on liquidity allocation.

ESMA has launched a consultation to introduce a new simplified approach for the annual update of Money Market Fund (MMF) stress test parameters, shifting to web-based publication.

LX20ESMA's initiative, part of its SBR program, aims to optimize MMF operators' compliance by facilitating access to updated parameters. The transition from direct annual amendments to Guidelines to annual web-based calibration parameter publications requires entities to constantly monitor the ESMA website, integrating updates into their stress testing models promptly. This reduces administrative burden but increases the need for continuous vigilance.

ESMA launches a harmonized approach to funds reporting and sets a path for streamlined transaction reporting, aiming to reduce operational burdens and improve data quality.

LX20ESMA's initiative to consolidate funds and transactions reporting into a common framework represents a significant evolution for market participants. The 'reporting once' principle and the hybrid operational model at EU level aim to mitigate regulatory fragmentation while improving data quality and usability. Firms and intermediaries will need to adapt their systems to comply with the new harmonized standards, benefiting in the long run from greater operational efficiency.

ESMA published the results of its Common Supervisory Action (CSA) on the integration of sustainability into MiFID II, promoting a proportionate supervisory approach for national authorities.

LX20ESMA's communication emphasizes a proportionate approach to supervising MiFID II ESG requirements, favoring dialogue with firms during the transition phase, except in cases of serious breaches. Firms and intermediaries should leverage this openness to refine the integration of sustainability into suitability and product governance processes, while preparing systems for future regulatory evolutions aiming at simplification and more consistent application.

ESMA has launched its sixth stress test exercise for Central Counterparties (CCPs), involving 16 CCPs and an adverse scenario from the ESRB, to assess their resilience and the impact of recovery and resolution arrangements.

LX20ESMA's sixth stress test for CCPs, including an adverse scenario from the ESRB and the recovery and resolution component, underscores the critical importance of market infrastructure resilience. European authorities are increasing systemic monitoring, placing additional pressure on market participants and intermediaries to enhance risk management and governance frameworks, given the central role of CCPs in financial stability.

ESMA has launched a call for evidence to gather views on the purposes, market practices, needs, and risks associated with restricted subscription and private credit ratings, as their use increases.

LX20The ESMA's call for evidence on 'restricted subscription' and 'private' credit ratings signals increased regulatory scrutiny of less transparent credit assessment methodologies. Market participants, issuers, and intermediaries should closely monitor the outcome of this initiative, as it could precede future regulatory adjustments impacting the disclosure and use of such ratings, with potential implications for liquidity and price formation of financial instruments relying on them as benchmarks or eligibility criteria.

ESMA has launched a public consultation on draft guidelines concerning the endorsement of ESG ratings issued outside the European Union, under the ESG Ratings Regulation.

LX20Firms and intermediaries relying on non-EU ESG ratings should closely monitor the evolution of these guidelines. The implementation of a structured endorsement regime will impose specific procedural and informational standards on EU-accredited rating providers, with potential impacts on the accessibility and legal validity of such ratings for regulatory compliance and ESG disclosures.

ESMA has published the 2025 ESEF XBRL taxonomy and an updated ESEF Conformance Suite to support issuers in preparing 2026 IFRS consolidated financial statements, incorporating IFRS 18 for a smoother transition.

LX20Issuers and software vendors should carefully review ESMA's 2025 ESEF taxonomy, which anticipates the introduction of IFRS 18. The inclusion of two entry points (IAS 1 and IFRS 18) aims to facilitate adaptation. The absence of planned amendments for 2026 suggests temporary regulatory stability, beneficial for reporting planning. Consulting the IFRS Foundation's guidance is crucial for compliant implementation.

The Italian Data Protection Authority has admonished media outlets regarding the dissemination of names of individuals involved in a Milan judicial inquiry, even if not under investigation, emphasizing the need to respect dignity and reputation.

LX20This admonition from the DPA highlights the Authority's continuous focus on privacy protection, even within the context of judicial news. Companies and operators managing communications or content (including digital) must rigorously assess the relevance and non-excessiveness of disseminated personal data, especially if sensitive or related to non-investigated individuals, to avoid penalties and reputational damage. A careful balance between the right to report and personal data protection is essential.

The Italian DPA newsletter of April 15, 2026 reports a 96,000 euro sanction against ENI, new FAQs on online exams and distance learning, the right to access personal emails after employment termination, and the non-compliance of Milan Linate's "FaceBoarding" system.

LX20Businesses must consider privacy implications related to the use of facial recognition systems (such as Linate's "FaceBoarding") and the management of ex-employee emails. The DPA's decision on accessing one's own emails after employment termination requires a review of internal policies, ensuring compliance with data subject rights while safeguarding company informational assets.

From 6 June 2026 the research payment regime changes, the minimum free float drops to 10% and "issuer-sponsored research" is introduced.

LX20Directive (EU) 2024/2811, part of the Listing Act package, amends MiFID II (Directive 2014/65/EU) by reforming the research unbundling regime introduced in 2018. From 6 June 2026, the date of application of the new provisions, investment firms may choose to pay for research and order execution either jointly or separately, subject to specific transparency obligations toward clients. The key change is the removal of the market-capitalisation threshold: re-bundling is no longer confined to research on SMEs but extends to issuers of any size. The two pre-existing methods remain available, namely payment from the firm's own resources and payment through a dedicated research payment account. Investment firms, intermediaries and research providers should update client documentation, disclosures and compliance procedures ahead of the application date.