The European Securities and Markets Authority (ESMA) published the report about the Common Supervisory Action 2024–2025 (CSA) about the transposition of sustainability requirements in the Markets in Financial Instruments Directive (MiFID) on the ESMA website on 06.05.2026: ESMA promotes proportionate supervision of MiFID II sustainability requirements.
The report notably contains the supervisory expectations in relation to:
- the collection and treatment of clients’ sustainability preferences;
- the categorisation and matching of products to those preferences;
- the application of the portfolio approach; and
- the target market assessment of sustainable products.
ESMA reaffirms the importance of sustainability requirements. It also notes that the legal framework for sustainable investments is currently undergoing significant revision. In view of these developments, ESMA recommends national competent authorities to adopt a proportionate supervisory approach: Supervisors and firms should engage in dialogue during this transition period, rather than prioritising enforcement measures. This is naturally without prejudice to cases involving clear breaches or mis-selling. The FMA will take ESMA’s recommendation into account in its supervisory activity.
Next steps:
ESMA will consider the results of the CSA in any future updates of the sustainability framework under MiFID II. The aim is to simplify the framework and to support consistent and effective application.