meta_id 3129871

On May 6, 2026, the European Securities and Markets Authority (ESMA) issued a statement presenting the results of its Common Supervisory Action (CSA) on how sustainability is integrated into firms' suitability assessments and product governance processes under the Markets in Financial Instruments Directive (MiFID II). The CSA examined four key areas: 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 products. ESMA's statement sets out high-level interim supervisory expectations across these themes. While reaffirming the importance of sustainability and encouraging firms to continue implementing MiFID II sustainability requirements, ESMA recognises that the sustainable finance framework is undergoing significant revision. In response, and reflecting ESMA's strategic priority of promoting simplification and reducing undue burden, ESMA invites national competent authorities (NCAs) to adopt a proportionate supervisory approach during the transition period. This includes fostering dialogue with firms rather than prioritising enforcement actions, without prejudice to cases involving clear breaches or mis-selling. ESMA will consider the results of this supervisory work for any future updates of the MiFID II Delegated Acts on sustainability and related ESMA Guidelines. The authority aims to simplify the framework and support more consistent and effective application of sustainability requirements across the EU. The statement is available on ESMA's website, with the full CSA results document (ESMA35-915049491-6291) available for download.