This Regulation establishes the European Securities and Markets Authority (the Authority), which operates under various legislative acts to supervise and regulate financial market participants. Its mandate includes ensuring effective governance, auditing, and financial reporting, while promoting sustainable practices and integrating environmental, social, and governance factors.

The Authority aims to protect the public interest by enhancing the stability of the financial system and ensuring the transparency and integrity of financial markets. It acts independently and transparently, focusing on systemic risks and fostering supervisory convergence across the Union, ensuring fair treatment of stakeholders and adherence to the principle of proportionality.