Global Trustee and Fiduciary Services Bite-Sized Issue 6 2026

17 AIFMD CRYPTOASSETS FINTECH FSB IOSCO MIFID II/MIFIR MONEY MARKET FUNDS OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ESG T+1 ASIA PACIFIC EUROPE LUXEMBOURG NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 6 | 2026 Quick LInks EUROPE ESMA’s Annual Data Report Shows Increased Quality, Wider Use and Digital Progress On 29 May 2026, the European Securities and Markets Authority (ESMA) published its annual report on the quality and use of regulatory data. It shows that improvements in data quality and data use reinforce each other in a virtuous cycle, supporting more effective supervision and market monitoring across the EU. ESMA says this year’s edition reflects an expansion in the scope of its data quality and use activities, with measurable improvements in data quality across major regulatory datasets, including EMIR, SFTR, MiFIR, AIFMD and MMFR. These improvements are accompanied by extensive and growing supervisory use of the data by ESMA and national competent authorities (NCAs), underlining the central role of high-quality data in supporting investor protection, financial stability, orderly markets and market integrity. In parallel, ESMA says it has advanced simplification and burden reduction efforts through a 2025 Call for Evidence, gathering stakeholder input on streamlining reporting across EMIR, MiFIR and SFTR, including options to remove duplications or apply a “report once” approach. It is also developing an integrated reporting framework for investment funds to harmonise requirements, reduce fragmentation, and support a more efficient and centralised EU data environment. In addition to the datasets covered in previous editions, the report now includes further reporting regimes and registers, such as Prospectus reporting and ICT-related incident reporting under the Digital Operational Resilience Act (DORA). ESMA says the publication also underlines how it is increasing automation and use of advanced analytical tools, as well as strengthening cooperation with NCAs through common tools, shared dashboards and coordinated data quality engagement. These developments are part of ESMA’s broader data strategy, aiming to modernise data-driven supervision across EU financial markets. ESMA will host on 18 June a webinar to present the main findings of the report. Link to Annual Report here ESMA Identifies Areas for Further Supervisory Convergence on Compliance and Internal Audit in the Funds Sector On 11 May 2026, ESMA published the results of its 2025 Common Supervisory Action (CSA) on the compliance and internal audit functions of fund managers, carried out in with the participation of all EU and EEA national supervisors. ESMA says the EU-wide review found that most fund managers comply with key requirements under the AIFMD and UCITS framework. At the same time, the CSA identified governance weaknesses, particularly in the independence of control functions, the quality and implementation of internal policies, and the way senior management and boards exercise oversight. ESMA says that, while most entities had relevant policies and procedures in place, NCAs observed significant differences in their quality and practical implementation, notably depending on the size, nature and complexity of market participants concerned. The report also sets out examples of good and poor practices identified across the compliance and internal audit functions, highlighting where controls were effective and where further strengthening is needed. The CSA was conducted under a common assessment framework. NCAs carried out supervisory activities throughout 2025, using desk-based reviews and, where appropriate, on-site inspections. While acknowledging the overall positive outcome of the CSA, ESMA encourages NCAs to follow up on the breaches and vulnerabilities identified, to better understand their root causes and to ensure that effective remedial actions are implemented in a timely manner. ESMA says it will continue to promote exchanges among NCAs on this topic, including through follow- up supervisory actions, to further enhancing supervisory convergence across the EU funds sector. Link to Final Report on the Common Supervisory Action on Compliance and Internal Audit Functions here