Global Trustee and Fiduciary Services Bite-Sized Issue 10 2026

16 AIFMD CRYPTOASSETS FINTECH FUND LIQUIDITY OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ ESG T+1 ASIA PACIFIC EUROPE NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 10 | 2026 Quick Links • Enhance supervisory convergence across the EU, alongside its direct supervisory responsibilities, continuing the strong cooperation with National Competent Authorities, including on supervision of crypto-asset service providers under MiCA. Delivering more efficient financial markets ESMA says that, following the expected final agreement by the co-legislators on the MISP proposal in 2027, it will prepare for the resulting changes to its mandates and responsibilities. In parallel, ESMA says it will be delivering other priorities supporting the SIU, including implementation of the European Single Access Point and the transition to T+1 settlement. ESMA says it will continue to enhance investor protection by supporting the implementation of the Retail Investment Strategy and promoting clear, accessible information for investors. ESMA says its four flagship simplification initiatives on transaction reporting, funds reporting, the retail investor journey and risk-based supervision will also enter a new phase in 2027. They are intended to reduce unnecessary administrative burdens, improve the usability of regulatory data and make supervision more effective. Further details are set out in the report also published on 28 September 2026 which outlines actions undertaken in 2026 and planned for 2027 to embed simplification and burden reduction across ESMA’s regulatory and supervisory activities. Finally, ESMA says it will support the implementation of key EU financial legislation by delivering technical standards and advice across its remit. Harnessing data and technological innovation ESMA says it will further enhance its data capabilities and promote innovation in the supervisory process, through the development of its Data Platform and the deployment of AI-based tools to support supervision. It says it will also strengthen cybersecurity capabilities and advance work on crypto-assets and the impact of artificial intelligence on financial markets. ESMA says tokenisation remains a priority, further expanding the work on the opportunities it can bring to the EU capital markets. Link to 2027 Annual Work Programme here Link to ESMA’s Contribution to Simplification and Burden Reduction Report here ESMA Publishes Second 2026 Risk Monitoring Report On 10 September 2026, ESMA published its second risk monitoring report of 2026, setting out the main risks and vulnerabilities in EU financial markets. ESMA says it found that stretched technology valuations and heightened geopolitical tensions are testing the resilience of markets, in a climate of persistent inflation and weaker economic growth. Despite heightened market volatility and event-driven uncertainty, strong performance in technology and AI-related sectors has been helping to sustain fast recovery of investor optimism and financial markets valuations. ESMA says this resilience should not be mistaken as an absence of vulnerabilities. The disconnect between deteriorating macro-financial conditions and upbeat market valuation increases the risk of sudden market corrections, should economic risks materialise or investor sentiment shift abruptly. At the same time, rapidly emerging threats to market infrastructures and key market players, such as those linked to frontier AI, should not be overlooked. Beyond these risk drivers, ESMA says the report sets out market developments and conditions across key segments of EU financial markets during the first half of 2026. It also provides in-depth analysis on selected topics, including UCITS market fragmentation, technology IPO trends in the US and prediction markets. The Risk Monitoring Report also looks at developments in: • Securities markets and crypto-assets • Infrastructures and services • Asset management • Consumers