The European Securities and Markets Authority (ESMA) has published a final report setting out its supervisory expectations for the management bodies of entities under its supervision, structured around 12 high-level principles. The principles are framed as outcome-focused expectations, reflecting ESMA’s aim to supervise on a principle-based basis. The principles apply to ESMA-supervised entities and are also relevant to firms seeking ESMA registration and authorisation. They are intended to support supervisory dialogue on governance effectiveness and oversight, while allowing firms to adopt approaches tailored to their nature, scale and complexity. The report positions management bodies as central to overseeing business strategy and the management of corresponding risks. ESMA’s supervisory teams will integrate the 12 principles into supervisory priorities over the course of 2026 and plans to engage with supervised entities on practical implementation.
European Securities and Markets Authority 2025-12-10
European Securities and Markets Authority issues final supervisory expectations for management bodies with 12 high-level principles
The European Securities and Markets Authority (ESMA) released a final report detailing supervisory expectations for management bodies under its supervision, based on 12 high-level, outcome-focused principles. These principles guide governance effectiveness and oversight, allowing tailored approaches according to the firm's nature, scale, and complexity. ESMA will incorporate these principles into its supervisory priorities in 2026 and engage with entities on their practical implementation.