ESMA sets out 2026 Enforcement Priorities

The European Securities and Markets Authority (ESMA) has set out the European Common Enforcement Priorities (ECEP) for the 2026 annual financial reports of listed issuers.

The following priorities have been identified:

• IFRS financial statements - ESMA's priorities focus on the reporting implications of geopolitical risks and uncertainties, restructuring provisions, and debt restructuring transactions. 
• Sustainability reporting - ESMA emphasises the continued application of robust materiality assessments and the need for clear connectivity between impacts, risks and opportunities (IROs), related policies, actions and targets (PATs), and reported metrics under the European Sustainability Reporting Standards (ESRS). 
• European Single Electronic Format (ESEF) - filing errors, particularly in the statement of changes in equity.

ESMA reiterated the importance of materiality in corporate reporting while seeking to balance simplification initiatives with investor protection and market stability. Issuers, auditors and regulators are encouraged to consider these priorities when preparing, auditing and reviewing 2026 annual reports.

The enforcement priorities may be accessed here.