The European Securities and Markets Authority has published principles for risk-based supervision, setting out a common framework for ESMA and National Competent Authorities (NCAs) to identify, assess, prioritise and address supervisory risks in a more consistent way across the Union. The principles outline key concepts and foundational elements intended to support an EU-wide supervisory culture and strengthen the EU single market, with supervision described as consistent, proportionate and effective. ESMA positions risk-based supervision as a cornerstone of EU securities markets oversight, focusing supervisory attention on the greatest threats to investor protection, financial stability and orderly markets, and links the approach to its simplification and burden reduction agenda by aiming to improve supervisory efficiency and value. ESMA and NCAs will work together on implementation to advance effective risk-based supervision and support high quality supervisory outcomes for market participants.
European Securities and Markets Authority 2026-01-09
European Securities and Markets Authority publishes principles for risk-based supervision across EU securities markets
The European Securities and Markets Authority (ESMA) has released principles for risk-based supervision, establishing a framework for ESMA and National Competent Authorities to consistently address supervisory risks across the EU. This initiative aims to enhance supervisory efficiency, focusing on investor protection, financial stability, and orderly markets, while supporting ESMA's simplification and burden reduction agenda.