ESMA designates digital innovation and AI as new strategic supervisory priorities from 2027

The European Securities and Markets Authority (ESMA) announced it will implement a new Union Strategic Supervisory Priority (USSP) focusing on digital innovation beginning in 2027 ³. The priority aims to ensure that supervisors possess the necessary expertise and capacity to oversee the deployment of new technologies in financial markets ³.

ESMA stated that, in collaboration with National Competent Authorities, the initial regulatory focus will be on the use of artificial intelligence and tokenization by supervised entities ³. The regulator indicated it will maintain flexibility to address other emerging technological developments ³.

Supervisory Convergence Tools

Union Strategic Supervisory Priorities serve as ESMA's convergence tools designed to address strategic, high-risk areas across the European Union ³. The regulator uses these priorities to direct supervisory resources toward critical risks affecting investor protection, financial stability, and the orderly functioning of financial markets ³.

The upcoming digital innovation priority will run concurrently with the existing USSP on cyber and operational resilience, which ESMA established in 2025 ³. The authority noted it will continue coordinating efforts to manage future challenges, specifically mentioning those arising from advanced models such as frontier AI ³.

Concurrently, ESMA is concluding its 2023 USSP regarding ESG disclosures this year, noting progress in improving sustainability information for investors ³.

Clarification on Client Funds

Separately, ESMA published a question and answer document on Oct. 16, 2026, addressing the use of payment accounts provided by non-bank payment service providers by Crypto-Asset Service Providers (CASPs) for holding clients' funds ¹.

Additionally, ESMA announced it will host Data Day 2026 on Nov. 24 in Paris ². The event, themed "Data in the Savings and Investment Union – from burden to opportunity," expects over 200 industry participants and regulators ². The agenda includes parallel sessions on topics such as simplification, integrated fund reporting, and crypto-asset monitoring ².