RegCORE Client Alert | Capital Markets Union
QuickTake
As explored in earlier Client Alerts,1 the European Securities and Markets Authority (ESMA) has a lot of priorities on its plate. In a letter dated 3 March but released 6 March 2025 (the 2025 Prioritisation Letter),2 Verena Ross, ESMA's Chair, communicated to the European Commission's DG FISMA,3 how it would prioritise the tasks and commitments set out in its 2025 Annual Work Programme (AWP).4 In 2024 ESMA published a prioritisation letter on 30 May 2024.5
Similar to the rationale set out in 2024, ESMA explains that the prioritisation exercise is aimed at ensuring ESMA's resources are appropriately allocated, in particular given the "...external factors impacting on ESMA's workload since the publication of the 2025 AWP. The primary external factor affecting ESMA this year is the coincidence of a large number of reviewed legislative files with the need to prepare for implementation of new responsibilities (reviews of existing legislation including CSDR, MiFID/MiFIR, AIFMD, the UCITS Directive, EMIR 3, and the Listing Act. New legislative files include DORA, the ESAP and MiCAR and the regulations on Green Bonds and ESG Ratings Providers). Several new mandates are not accompanied by additional resources for preparatory work and resource redeployment opportunities have been exhausted."
Moreover, ESMA notes that "The resources freed up from postponing and deprioritising the deliverables listed below will be diverted towards delivering on the highest priority workstreams for ESMA, amongst which: the implementation of EMIR 3, MiFIR/MiFID II Review, Listing Act, CSDR Review, T+1 project, AIFMD (II) Review as well as the preparation for new supervisory responsibilities relating to Consolidated Tape Providers, Green Bond verifiers and ESG Rating providers and oversight powers under DORA."
This PwC EU RegCORE Client Alert provides a brief look through the legal lens at the key takeaways from the 2025 Prioritisation Letter and the impacts that may have on financial market participants. In particular, it also explores the latest overview published by ESMA of its planned consultation papers in 2025.6 This Client Alert should be read together with separate thought leadership coverage on ESMA's efforts on delivering individual reforms notably in respect of the range of implementing technical standards (ITS) and regulatory technical standards (RTS) as well as guidelines that are to be advanced at the EU level and then implemented by national competent authorities (NCAs).
Key takeaways
In 2025 ESMA proposes to take various actions (delay, cancel or replace) with respect to how it prioritises 32 items. In 2024 this affected only 17 files – most of which made it over the line or continue to progress through the pipeline successfully as 2024 turned to 2025.
While ESMA has long been faced with having to do a lot with resource limitations, ESMA's prioritisation focuses on advancing those items, where the expected impact, as relative to the resources required to deliver them, accounting for the time sensitivities and dependencies on other workstreams, can yield the most advantageous results.
While most of these changes that ESMA proposes in its 2025 prioritisation are unlikely to have a material adverse effect on market participants, it does leave a residual risk that certain regulatory requirements may remain more conceptual and uncertain. Accordingly, updates by firms to their policies and procedures as well as counterparty, client and customer facing documentation may (have to) be somewhat delayed or will have to only be addressed by holdover wording that will require (further) updating once the final standards are available.
ESMA's proposed actions for 2025, and the resulting possible impacts can be summarised as follows:
Footnotes
1 In particular here and here.
2 Available here.
3 Directorate General Financial Services, Financial Stability and Capital Markets Union
4 See coverage here.
5 See here.
6 See here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
