Asset Management & Investment Funds: EU & International Developments – February 2026

ESMA Chair Verena Ross' speech at the European Banking Summit on the vital need for growth and the role of capital markets in Europe’s strategic renewal

ESMA Chair Verena Ross delivered a keynote address at the European Banking Summit, focusing on the renewed political impetus on strengthening Europe’s capital market through the Savings and Investment Union strategy (SIU), and the recent Market Integration Package (MIP) put forward by the European Commission.  

Chair Ross emphasised that the SIU has become strategically important in the current geopolitical context, moving beyond a technical discussion to become central to Europe's growth, competitiveness and resilience. The SIU strategy aims to empower citizens to participate more actively in capital markets, improve access to finance for innovative and growing businesses, deepen market integration and allow for scale across the EU, and strengthen supervisory efficiency and consistency.

Ross described the MIP as potentially the most consequential financial market reform since the post-crisis regulatory overhaul. The MIP seeks to make Europe's capital markets function more like a seamless ecosystem rather than 27 adjacent national markets. The package will materially affect trading venues, post-trade infrastructures, asset managers, depositaries, investment firms and crypto-asset service providers.

Ross emphasised that the MIP is "a task for now" rather than a long-term project.

Evolving role of ESMA

Under the MIP, ESMA would gain direct supervisory authority over certain significant market infrastructures, including trading venues, central counterparties, central securities depositories and all crypto-asset service providers. Ross stressed that the objective is not to replace national supervisors but to anchor supervision more firmly in the Single Market interest. ESMA would undergo “an upgrade” of its governance, funding, powers, and convergence tools.

Supervision will be a central part of the debate to come, and Ross stated that consistent supervision would remove unnecessary compliance costs and enable firms to scale more efficiently across borders, strengthening interoperability and market integrity in the Single Market.

You can read more about the Commission’s MIP here. The MIP could significantly reshape cross-border operations for UCITS ManCos and AIFMs with harmonised authorisation processes, faster passporting and streamlined marketing notifications, removal of “gold-plating” and national discretions, an EU depositary passport, simplified EU group delegation rules and stronger supervisory convergence. This includes a proposal for annual reviews of how national competent authorities supervise large EU groups of UCITS ManCos and AIFMs.

European Commission call for evidence and public consultation on the Shareholder Rights Directive

The European Commission launched a call for evidence and a public consultation on the evaluation and review of Directive 2007/36/EC on the exercise of certain rights of shareholders in listed companies, as amended by Directive (EU) 2017/828 (Shareholder Rights Directive or SRD).

This initiative forms part of the Commission’s SIU announced in March 2025 and has been included in the 2026 Commission Work Programme. The general aim of the evaluation and review is to boost the competitiveness of EU listed companies and simplify procedures for financial market participants by:

• improving corporate governance, especially through the use of digital technologies
• facilitating the flow of information and the exercise of rights between listed companies, intermediaries and shareholders, particularly by leveraging digital solutions

The evaluation will be conducted in parallel with an impact assessment, the results of which will inform the Commission’s legislative considerations.

Implications for Irish UCITS ManCos and AIFMs

While the Shareholder Rights Directive applies directly to listed companies, it also has transparency and shareholder engagement implications for UCITS ManCos and AIFMs, when investing on behalf of investors in shares traded on regulated markets. A revised SRD may therefore have practical impacts on engagement frameworks and reporting obligations for Irish fund management companies.

The feedback period for both the call for evidence and the public consultation runs until 6 May 2026. The Commission is expected to adopt a legislative proposal to revise the SRD in Q4 2026.

AML/CFT/FS

AMLA sets strategic priorities with 2026-28 Single Programming Document

The EU’s Anti-Money Laundering Authority (AMLA) published its first Single Programming Document for 2026-2028 (SPD) setting out its strategic priorities and multi-year plan as it transitions from establishment to full operational capacity.

AMLA identifies the following five interlinked activities that will shape its work in 2026 with an impact across the three years covered in the SPD:

• Delivering on core regulatory mandates. The EU AML/CFT Single Rulebook is the principal instrument in the harmonisation of the EU AML/CFT framework. AMLA will prioritise the development of the regulatory framework by drafting RTS, ITS and GL mandated under the AML Regulation, AMLD 6 and the AMLA Regulation as set out in Annex XI of the SPD.
• Advancing direct supervision. From 2028, AMLA will directly supervise forty of the EU’s most impactful financial institutions with the first selection process taking place in 2027. In 2026, AMLA will finalise its methodology for selecting entities for direct supervision and being the supporting data collection exercise in March to test and calibrate the model.
• Financial intelligence unit (FIU) framework. In 2026, the focus will be on operationalising mechanisms for joint analyses, embedding harmonised technical standards and mediation mechanisms, and starting first peer reviews. The transfer and optimisation of FIA.net will be completed by 2027. By July 2027, AMLA will also issue guidelines on indicators of suspicious activities or behaviours, providing a common reference points for FIUs and obliged entities.
• Indirect supervision and oversight. In 2026, AMLA will develop harmonised approaches for indirect supervision through cooperation with NCAs. This includes the development of a common supervisory model and manual as well as thematic reviews to promote supervisory convergence.
• Risk frameworks. In 2026, AMLA will build its risk analysis framework, which will include mapping data sources and creating the infrastructure to collect data, both at procedural and IT level.

In parallel, AMLA will continue to scale up its operational capacity and develop its IT infrastructure. Staff numbers are expected to grow from 120 at the end of 2025 to 432 by the end of 2027.

AMLA consults on draft RTS’ on CDD measures

AMLA launched consultations on:

• draft RTS on Customer Due Diligence (CDD)
• draft RTS for criteria for identifying business relationships occasional and linked transactions and lower thresholds
• draft RTS on pecuniary sanctions, administrative measures and periodic penalty payments

During the consultation period AMLA will hold an online public hearing on the draft RTS’ on CDD and business relationships and occasional and linked transactions. The hearing is currently scheduled for 24 March 2026 and AMLA will announce additional details in the future.

The consultation periods will end on 8 May 2026 (save for the consultation on draft RTS on pecuniary sanctions and administrative measures, which will end on 9 March 2026). AMLA will consider stakeholder feedback when preparing its final draft RTS’, which are each required to be submitted to the European Commission by 10 July 2026.

The underlying requirements in the AML Regulation will apply from 10 July 2027, which will give obliged entities up to one year to make necessary updates to the relevant AML/CFT policies, procedures, systems and controls in line with the RTS’. Credit and financial institutions and in-scope non-financial sector entities will need to start assessing what changes will be required and set key milestones so that they are ready for implementation in July 2027.

For further insight into AMLA’s strategic priorities and consultations, read our related article here.

EMIR 3.0 RTS related to the active account requirement

Commission Delegated Regulation (EU) 2026/305 containing regulatory technical standards (RTS) specifying the operational conditions, the representativeness obligation and the reporting requirements related to the active account requirement (AAR) under EMIR 3, was published in the Official Journal of the European Union.

The RTS will enter into force on 26 February 2026.

European Commission consults on Implementing Regulation on FX benchmarks exempt under BMR

The European Commission has published a draft Commission Implementing Regulation establishing a list of spot foreign exchange (FX) benchmarks provided by non-EU administrators that will be exempt from the Benchmarks Regulation (BMR). The aim is to ensure that EU banks, investment funds and businesses continue to have access to FX benchmarks that are widely used for hedging purposes.

Article 18a BMR allows the Commission to designate specific benchmarks for exclusion from the BMR. The Commission has identified USDINR, USDKRW, USDPHP and USDTWD as exempt benchmarks. The draft act is open for feedback until 2 March 2026.

ESMA 2027-2029 programming document

ESMA published its 2027–2029 Programming Document outlining ESMA’s priorities against a backdrop of a rapidly evolving regulatory and market landscape, the SIU, and continued emphasis on simplification and burden reduction and supervisory convergence work. The Programming Document builds on ESMA’s 2023-2028 strategy.

 Among others, key topics for fund managers include:

• Integrated fund reporting: ESMA will continue to develop an integrated supervisory data collection framework under AIFMD and UCITS, with the launch of the new EU-wide reporting regime under AIFMD II in 2027 aimed to streamline existing requirements. 
• Simplification and burden reduction: streamlining regulatory guidance and Level 2 instruments remains a priority under SIU reforms.
• Retail investor protection: work under the Retail Investment Strategy (RIS), following the political agreement in late 2025, will focus on disclosures, costs and charges, and benchmarks. 
• Sustainable finance: from 2027 the ESAs could be developing technical advice for sustainability disclosures, following possible finalisation of the SFDR review in 2026.
• PRIIPs, EuVECA and EuSEF: the review of these regulations may give rise to RTS and requests for technical advice.
• Risks: key areas of focus in 2027 could include the use of leverage by funds, liquidity, fund stress testing as well as interconnectedness of funds with the rest of the financial system.
• CBDR: in Q2 2027 ESMA will issue the 2027 report on requirements and marketing communications under the Regulation on cross-border distribution of funds.
• T+1: ESMA has recommended that T+1 is achieved in the EU in Q4 2027, proposing 11 October 2027 as the optimal date for this transition.
• Other: the Programming Document also covers ESMA’s ongoing work under MAR, EMIR, MiFID/MiFIR and MiCA.

ESMA also notes that the SIU package is expected to bring further significant impacts from 2029 onwards. Key deliverables for 2027 also include the public roll out of the European Single Access Point (ESAP) and enhancing the ESMA data platform with AI tools.

For more information on these topics please contact any member of A&L Goodbody's Asset Management & Investment Funds team.

Date published: 24 February 2026