The following posts provide a snapshot of selected UK, EU and global financial regulatory developments of interest to banks, investment firms, broker-dealers, market infrastructures, asset managers and corporates.
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FSB report identifies vulnerabilities in non-bank CRE investors
19 June 2025
The Financial Stability Board (FSB) has published a report, alongside a press release and updated webpage, examining vulnerabilities in non-bank commercial real estate (CRE) investors. The report identifies entities such as real estate investment trusts (REITs) and property funds as being particularly exposed to the risks of higher interest rates and highlights three key vulnerabilities in these types of investors.
Read more.Topic : Fund Regulation -
The Economic Crime and Corporate Transparency Act 2023 (Commencement No.5) Regulations
19 June 2025
The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 5) Regulations have been made under the Economic Crime and Corporate Transparency Act 2023 (ECCTA). These regulations, made on 10 June, bring into force the following provisions: (i) section 194 which requires the Lord Chancellor to make Civil Procedure Rules enabling courts to dismiss strategic litigation against public participation (SLAPP) claims before trial in certain circumstances and to make certain costs orders; and (ii) section 195, which defines what constitutes a SLAPP claim. The regulations, along with relevant amendments to the Civil Procedure Rules 1998, entered into force on 18 June.Topic : Financial Crime and Sanctions -
Final draft RTS on EU active account requirement published
19 June 2025
Following its consultation, the European Securities and Markets Authority (ESMA) has published a final report, including final draft regulatory technical standards (RTS), on the conditions of the Active Account Requirement under the amended European Market Infrastructure Regulation (EMIR 3). The active account requirement requires EU counterparties active in certain derivatives to hold an operational and representative active account at an EU-authorised CCP. The final draft RTS sets out the operational conditions of the account, details of the representativeness obligation and the reporting requirements for in-scope entities as amended by ESMA following its consideration of feedback to the proposed RTS. ESMA's final report discusses the feedback received and explains its decision for either maintaining the original proposal or making changes. ESMA will now submit the final draft RTS to the European Commission for approval. The Active Account Requirement applies from 25 June. Until such time as the Active Account RTS enter into force, in-scope entities should discuss compliance with their national competent authority. -
EU Delegated Regulation on threat-led penetration testing published in OJ
18 June 2025
Commission Delegated Regulation (EU) 2025/1190 of 13 February has been published in the Official Journal of the European Union. The Delegated Regulation supplements the Digital Operational Resilience Act (DORA) with regard to regulatory technical standards (RTS) related to threat-led penetration testing (TLPT). The RTS specify the criteria for identifying financial entities required to carry out TLPT, and establish detailed requirements regarding the scope of testing, the methodologies to be used and the handling and reporting of results. Further, the RTS also sets out the requirements and standards governing the use of internal testers, ensuring their independence and competence, and outlines the framework for supervisory and other forms of cooperation necessary for implementation of TLPT and the mutual recognition testing. The Delegated Regulation will enter into force on the twentieth day following its publication in the Official Journal of the European Union, which is 8 July.Topic : Operational Resilience -
EC adopts amendments to transparency requirements under MiFIR Review
18 June 2025
The European Commission has adopted a Commission Delegated Regulation to amend regulatory technical standards (RTS) on transparency requirements. The MiFIR Review revised the Markets in Financial Instruments Regulation amending the pre- and post-transparency requirements for trading venues as regards equities and non-equities. The amendments took effect on 28 March 2024. The adopted Delegated Regulation has amended two RTS supplementing the MiFIR transparency requirements.
Firstly, the adopted Delegated Regulation amends Delegated Regulation (EU) 2017/583 on transparency requirements for bonds, structured finance products (SFPs) and emission allowances by aligning the scope of the pre-transparency obligation with the MiFIR provisions, updating the transparency requirements for pre-trade transparency and recalibrating the post-trade requirements.
Secondly, the adopted Delegated Regulation amends Delegated Regulation (EU) 2017/587 on transparency requirements for equities, including shares, depositary receipts, exchange-traded funds and certificates. Among other things, the amendments set out the details of pre-trade data to be made public, set pre-trade transparency requirements for systematic internalisers and prescribe the transactions that will be exempt from the share trading obligation due to characteristics that show that the transaction is not contributing to the price discovery process.Topic : MiFID II -
EU provisional agreement on proposal for shortening the settlement cycle to T+1 for CSDR
18 June 2025
The Council of the European Union and European Parliament have reached a provisional agreement to amend the Central Securities Depositories Regulation (CSDR) to introduce a shorter settlement cycle for transferable securities transactions within the EU. The European Commission welcomed the agreement in a press release. The CSDR amendment will reduce the settlement period from two business days after trading takes place (T+2) to one business day (T+1), with the aim of promoting settlement efficiency, improving the liquidity of capital markets and eliminating costs linked to the misalignment of settlement cycles between the EU and other jurisdictions. The co-legislators agreed, however, to exempt certain securities financing transactions (SFTs) from the T+1 settlement cycle requirement. To prevent potential circumvention of the T+1 requirement, the exemption will only apply where SFTs are formally documented as single transactions comprising two linked operations. The provisional agreement requires approval by both co-legislators before going through the formal adoption procedure. Following adoption, the proposed regulation will enter into force on the twentieth day following its publication in the Official Journal of the European Union and will apply from 11 October 2027.Topic : Financial Market Infrastructure -
FATF updates standards on payment transparency
18 June 2025
The Financial Action Task Force (FATF) has published revised standards and an accompanying explanatory note, updating its comprehensive framework on recommendations to strengthen global efforts in anti-money laundering, counter-terrorist financing and counter-proliferation financing, as announced during the joint FATF-MONEYVAL Plenary meeting. The FATF update includes amendments to Recommendation 16, which governs the transparency of wire transfers through the payment chain and is commonly referred to as the "Travel Rule. The revised recommendation is aimed to modernise FATF standards in response to the evolving payments landscape, which now includes a broader range of products and services, technologies and business models.
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EBA consults on draft RTS on proposed acquisitions of credit institutions
18 June 2025
The European Banking Authority (EBA) has published a consultation paper and accompanying press release, on draft regulatory technical standards (RTS) under the Capital Requirements Directive (CRD as amended by CRD IV). The draft RTS specify the minimum information that must be provided to competent authorities when notifying about proposed acquisitions of qualifying holdings in credit institutions. The aim is to standardise the notification process across the EU, ensuring a consistent application against the five assessment criteria set out under CRD.
Read more.Topic : Prudential Regulation -
EC proposes Securitisation package in bid to revive EU market
17 June 2025
The European Commission (EC) has published a Securitisation package which aims to strengthen and simplify the EU securitisation framework. It is the first legislative initiative proposed under the Savings and Investments Union Strategy. The package consists of a proposal to amend the EU Securitisation Regulation (Regulation (EU) 2017/2402), a proposal to amend the Capital Requirements Regulation (CRR) as regards exposures to securitisations and a consultation on measures to amend the Liquidity Coverage Ratio (LCR) Delegated Regulation (Commission Delegated Regulation (EU) 2015/61). The proposal to amend the Securitisation Regulation seeks to simplify the existing due diligence rules with the aim of reduce duplicative and time-consuming requirements for investors. Verification of information will no longer be required regarding EU-based selling parties and low-risk investments guaranteed by multilateral development banks will be exempt from due diligence.
Read more.Topic : Securities -
FCA response to House of Lords committee report on enforcement investigations published
17 June 2025
The UK Financial Conduct Authority (FCA)'s response to the report issued by the House of Lords Financial Services Regulation Committee (the Committee) on the FCA's proposals to publicise enforcement investigations has been published. The response addresses the Committee's concerns regarding the FCA's proposed changes to its enforcement approach and public disclosure of investigations. The FCA has since published its final policy statement confirming that it would not proceed with introducing a new 'public interest' framework.
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HMT updates BNPL policy for domestic premises suppliers
16 June 2025
HM Treasury has published a policy paper setting out an update to its final position to its 2024 consultation on regulating Buy-Now, Pay-Later (BNPL) products which led to the laying of the draft secondary legislation, The Financial Services and Markets Act 2000 (Regulated Activities etc) (Amendment) Order 2025. Under the draft regulation, domestic premises suppliers (DPS merchants), which are businesses who sell, offer to sell or agree to sell goods or offer to supply or contract to supply services in people's homes, are required to seek credit broking permissions to offer BNPL products as a payment option. However, in response to industry feedback, the UK Government has concluded that this requirement may have a disproportionate impact for small businesses and will potentially reduce consumer choice. Consequently, an amending negative statutory instrument to coincide with the BNPL regulation, will be laid to remove this requirement, while maintaining key consumer protections. These include: (i) BNPL lenders will be required to conduct affordability and creditworthiness checks before consumers can use the product; (ii) consumers will be able to raise complaints through the Financial Ombudsman Service and access protections under section 75 of the Consumer Credit Act; and (iii) BNPL lenders authorised by the UK Financial Conduct Authority (FCA) will be expected to comply with Consumer Duty rules, including regular monitoring and review of consumer outcomes. BNPL firms will also be expected to exercise greater oversight of the merchants using their services—including DPS merchants. The UK government and the FCA will continue to monitor the BNPL market and will take any action, if required, to prevent consumer harm. -
ESMA 2024 annual report
16 June 2025
The European Securities and Markets Authority (ESMA) has published its 2024 Annual Report, alongside a press release, outlining the activities undertaken and results achieved in EU capital markets over the past year. Key accomplishments include setting the necessary steps, governance and timeline for the EU's transition to a T+1 settlement cycle, the selection of consolidated tape providers to enhance market transparency and the implementation of new regulations under the Markets in Crypto-Assets Regulation. ESMA also contributed to the development of the European Single Access Point, advanced the optimisation of financial market data usage and issued new guidelines aimed at addressing and mitigating greenwashing risks. Its supervisory effectiveness was further strengthened through the execution of EU-wide stress tests and the deployment of enhanced enforcement tools.Topic : Other Developments -
TNFD announces new phase of work – nature related data solutions
16 June 2025
The Taskforce on Nature-related Financial Disclosures (TNFD) has announced a new phase of work to improve market access to decision-useful nature data with plans to release a set of recommendations at COP30 this year. This new phase of work will involve pilot testing and market consultations to develop technical design specifications for a proposed Nature Data Public Facility (NDPF). The pilot programme will: (i) test nature-data principles; (ii) test data quality of nature-related data set; (iii) identify nature-data gaps in need of long-term funding; and (iv) test the NDPF with downstream users to define their data needs and inform design specifications. TNFD will also launch a grand challenge to encourage the development of new technology solutions to enable small and medium-sized enterprises to rapidly assess their nature-related issues globally. The pilot testing will run until October and involve a wide range of global implementation partners as well as a diverse group of over 40 upstream nature data providers and more than 20 downstream nature data users and market intermediaries across markets and sectors.Topic : Sustainable Finance -
EBA publishes technical standards on operational risk capital requirements and supervisory reporting
16 June 2025
The European Banking Authority (EBA) has published final reports on draft regulatory technical standards (RTS) and draft implementing technical standards (ITS) relating to the revised operational risk framework under the Capital Requirements Regulation (CRR) as amended by the CRR3. The draft RTS and ITS will be submitted to the European Commission (EC) for adoption.
Read more.Topic : Prudential Regulation -
HMT issues wholesale cash oversight orders
16 June 2025
HM Treasury (HMT) has published a series of wholesale cash oversights orders (dated 12 June) issued for the purpose of the Bank of England's (BoE) wholesale cash oversight regime. The orders confirm the recognition of several firms under Part 5A of the Banking Act 2009 for their roles in the wholesale cash distribution system. Under the Banking Act 2009, the BoE is accountable for overseeing risks to the effectiveness, resilience and sustainability of wholesale cash distribution across the UK, or any part thereof. The firms recognised include Vaultex UK Limited, G4S Cash Centres (UK) Limited, Post Office Limited, National Westminster Bank Public Limited Company, The Royal Bank of Scotland Public Limited Company, Lloyds Bank PLC, Bank of Scotland PLC, Barclays Bank UK PLC, Barclays Bank PLC, HSBC UK Bank PLC, HSBC Bank PLC and Santander UK PLC. -
The Payment Services and Payment Accounts (Contract Termination) (Amendment) Regulations 2025
13 June 2025
The Payment Services and Payment Accounts (Contract Termination) (Amendment) Regulations 2025 (SI 2025/688) have been published, alongside an explanatory memorandum. The regulations amend regulation 51 of the Payment Services Regulations 2017 (PSRs) to strengthen consumer protections when banks and payment service providers (PSPs) terminate payment service contracts. Under the new rules, PSPs must now provide customers at least 90 days' notice—an increase from the two months currently required—before closing a customer's account or ending a payment service contract. They must also give a clear, specific written explanation for the termination, enabling customers to understand the decision and, if necessary, challenge it through the Financial Ombudsman Service.
The aim is to prevent arbitrary account closures, enhance transparency and support small businesses by giving them more time to secure alternative banking arrangements, reinforcing the government's commitment to economic growth and security under the Plan for Change.
The regulations also amend regulations 25 and 26 of the Payment Accounts Regulations 2015 to bring the notice period and the requirement to provide reasons for terminating basic bank account contracts in line with the updated PSRs. Banks will also need to provide reasons for refusing an application for a basic bank account.
The legislation enters into force on 28 April 2026 and will apply to contract terminations and bank account closures for contracts agreed from and including 28th April 2026. -
Outcome of joint FATF-MONEYVAL plenary
13 June 2025
The joint FATF-MONEYVAL Plenary meeting, hosted by the Council of the European Union and chaired by FATF President Elisa de Anda Madrazo and MONEYVAL Chair Nicola Muccioli, concluded with significant progress in global efforts towards anti-money laundering (AML), counter-terrorist financing (CFT) and counter-proliferation financing (CPF) efforts.
Key takeaways include:- The approval of changes to the FATF Standards to enhance cross-border payment security, supporting the G20 initiative to make payments faster, cheaper, more transparent and accessible.
- The adoption of Latvia's mutual evaluation report which assessed the effectiveness of the country's AML, CFT and CPF measures; the report will be published later this year.
Topic : Financial Crime and Sanctions -
BCBS voluntary framework for disclosure of climate-related financial risks
13 June 2025
The Basel Committee on Banking Supervision (BCBS) has released a framework for the voluntary disclosure of climate-related financial risks, alongside an updated webpage and press release. This framework, which builds on the November 2023 consultative document and forms part of the BCBS's broader efforts to strengthen the resilience of the banking system to climate-related risk, is designed to operate within the Pillar 3 disclosure framework. It aims to enhance financial stability by providing banks with structured guidance for disclosing both qualitative and quantitative climate-related financial risks. While the BCBS agreed for the framework to be voluntary in nature, jurisdictions may choose to implement it domestically. The framework is structured around a series of qualitative tables and quantitative templates.
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Council of European Union agrees negotiating mandate for proposed Payment Services Package
13 June 2025
The Council of the European Union has announced it has adopted its negotiating mandate for the proposed Payment Services Directive (PSD3) and Payment Services Regulation (PSR), collectively known as 'the Payment Services Package'. The legislative package aims to modernise the EU's regulatory framework for payment services, building on the foundations of PSD2 to enhance consumer protection, strengthen fraud prevention and improve the functioning of open banking. It also seeks to address the pending challenges in the context of the impact and application of PSD2 in the internal market and adapt it to align with new market developments. Once formally agreed by both the Council of European Union and the European Parliament, the proposals will establish the PSR, which will be directly applicable in the EU and will repeal PSD2, replacing it with PSD3. We discuss the Payment Services Package in our bulletin, "Combatting payment account fraud - latest regulatory developments from the European Union." -
House of Lords committee publishes report on barriers to growth and competitiveness
13 June 2025
The House of Lords Financial Services Regulation Committee (the Committee) has published a report, alongside a press release, evaluating the progress made by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) in supporting growth in the financial services sector and the wider UK economy. The Financial Services and Markets Act 2023 introduced a secondary objective for the regulators focused on international competitiveness and growth. While the Committee acknowledges that this objective has encouraged regulators to consider the broader impact of their actions, it also finds a prevailing culture of risk aversion by the regulators which undermines the objective. It states this contributes to persistent barriers that limit firms' ability to grow, innovate and compete. -
EC adopts Delegated Regulation to delay the application of Basel 3 market risk prudential requirements by an additional year
12 June 2025
The European Commission (EC) has adopted a Delegated Regulation amending Regulation 575/2013 (CRR) regarding the date of the application of market risk prudential requirements. The new market risk requirements were introduced by CRR amendments made by Regulation (EU) 2024/1623, which marked the completion of the second phase of the implementation of the Fundamental Review of the Trading Book (FRTB), part of the Basel 3 international standards. The application date has already been postponed a year to 1 January 2026. However, a further postponement—which would delay application until 1 January 2027—is being proposed to reflect concerns around delays in Basel 3 implementation by other jurisdictions and the potential impact on EU banks. The Delegated Regulation will be scrutinised by the European Parliament and Council for three months (and this period may be extended by a further three months).Topic : Prudential Regulation -
ESMA publishes principles for supervisory oversight of third-party risk
12 June 2025
The European Securities and Markets Authority (ESMA) has published a comprehensive set of principles, accompanied by a press release, aimed at strengthening the supervision of third-party risks across the EU financial sector. The principles are intended to guide national competent authorities (NCAs) in identifying, assessing and overseeing third-party risks for EU entities in the securities markets, in accordance with the relevant legal framework and the principle of proportionality. Aligned with international standards (IOSCO, FSB and BCBS), the principles apply to all third-party arrangements, whether the third party is intra-group or external, located within the EU or in a third country, and irrespective of the technology used. The fourteen principles are grouped into four thematic areas to support NCAs in exercising effective oversight and ensuring that entities appropriately manage third-party risks.
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EC adopts technical standards for the development of consolidated tapes
12 June 2025
The European Commission (EC) has adopted a suite of technical standards for the development of consolidated tapes. The creation of consolidated tapes and the removal of obstacles to the development of consolidated tapes, were a key action point following the findings of the European MiFID/MIFIR review. The changes relate to technical standards for data reporting service providers, i.e. approved publication arrangements (APAs), approved reporting mechanisms (ARMs) and consolidated tape providers (CTPs). The technical standards adopted consist of implementing technical standards and three sets of regulatory technical standards, supplementing Regulation (EU) No 600/2014 (MIFIR).
Read more.Topic : MiFID II -
ESMA final reports on the Prospectus Regulation and civil prospectus liability
12 June 2025
The European Securities and Markets Authority (ESMA) has published two final reports providing technical advice to the European Commission (EC). The final report on prospectus regulation forms part of ESMA's technical advice under the EU Listing Act, which seeks to make EU capital markets more accessible, especially for small and medium-sized enterprises (SMEs).
The report covers:- Draft technical advice on the standardised format and sequence of the prospectus, the base prospectus and the final terms.
Read more.Topic : Securities -
Council of EU adopts proposal to amend CRR in relation to SFT stable funding factors
12 June 2025
The Council of the European Union has announced it has adopted a proposal to amend the Capital Requirements Regulation (CRR) in relation to the stable funding factors for securities financing transactions (SFTs) and unsecured transactions with a residual maturity of less than six months. The factors are used to apply the net stable funding requirements under the CRR, and, by virtue of article 510(8) of CRR, were due to be increased unless otherwise specified in a legislative act adopted on the basis of a European Commission proposal. The original intention of article 510(8) was to increase the factors in line with the international standards agreed by the Basel Committee on Banking Supervision, but allowing for credit institutions to adapt in time, and calibrate appropriately, for the increase, which would have occurred by 28 June. However, the current position is instead being maintained to ensure the ongoing efficient functioning of SFTs and collateral markets and avoid an undue increase in funding costs for credit institutions. The decision to maintain the current position also intends to bolster the EU's competitive position given the decisions made by other jurisdictions (including the UK and the U.S.) to deviate from the Basel III international standards. The adopted amendments mark the final step in the legislative process and will be published in the Official Journal of the European Union, taking effect from 29 June. Under the revised framework, the European Banking Authority will assess and report on the impact of these changes every five years.Topic : Prudential Regulation -
BoE publishes feedback statement on transitioning to a repo-led operating framework
11 June 2025
The Bank of England (BoE) has published a feedback statement in response to its December 2024 discussion paper on transitioning to a repo-led operating framework. The discussion paper proposed changes to the Sterling Monetary Framework (SMF), aiming to shift towards a repo-led, demand-driven system for supplying central bank reserves, including proposals to adjust the design of the indexed long-term repo (ILTR) facility.
While there was broad support for the overall design of the framework, concerns were raised in the following areas:- Predictability of ILTR pricing and allocation. The BoE has maintained that the ILTR's current high-level design, as a variable price, variable size auction, strikes an effective balance between flexibility and responsiveness to changing market conditions and predictability for SMF participants.
Read more.Topic : Prudential Regulation -
FCA findings on retirement income advice
11 June 2025
The UK Financial Conduct Authority (FCA) has published an article with findings from a thematic review assessing firms who provide retirement income advice (RIA). The review assessed how effectively firms are providing RIA and the quality of outcomes for consumers entering decumulation, the phase when individuals begin drawing income from their pension savings.
The FCA has identified three key areas as crucial for achieving good client outcomes:- Information collection and record keeping by firms. Firms are expected to gather comprehensive and relevant client information to assess suitability before making recommendations and maintain clear, up-to-date records. While most firms showed a good understanding of clients' objectives and circumstances, several failed to adequately document or collect key information in client files.
Read more.Topic : Consumer / Retail -
FCA launches IAAT
11 June 2025
The UK Financial Conduct Authority (FCA) has launched the investment advice assessment tool (IAAT) to help personal investment firms assess the suitability of their investment advice and disclosures to consumers (excluding advice on retirement income or defined benefit transfer advice). The IAAT offers a structured methodology for reviewing past advice provided since 3 January 2018, including in response to business complaints or as part of a past business review. The tool is intended not only for the use of investment firms but also professional indemnity insurance providers, compliance or legal consultants and trustees of defined contribution pension schemes. Use of the IAAT is subject to the FCA's licensing agreement, which must be reviewed before access or use. To support firms, the FCA has also published an instruction guide explaining how to use the IAAT and interpret the results of file reviews conducted by the FCA.Topic : Consumer / Retail -
EC adopts amendments to Delegated Regulation No 876/2013 to align with EMIR 3 reforms
11 June 2025
The European Commission has adopted a Delegated Regulation amending Delegated Regulation (EU) No 876/2013, which supplements EMIR (Regulation (EU) No 648/2012) in relation to the functioning and management of colleges for central counterparties (CCPs). The amendments are limited in scope and aim to align the existing regulatory framework with recent changes made by Regulation (EU) 2024/2987—part of the broader EMIR 3 reform package. The amendments have specifically modified: (i) article 2, to reflect the changes introduced in article 18(1) of EMIR, specifying the deadline for establishing a college and clarifying the role of the co-chairs in the context of the establishment of such college; (ii) articles 3 and 4, to align with article 18 of EMIR, clarifying the roles of the co-chairs and the governance structure of colleges to ensure their effective and consistent functioning for all CCPs across the Union; and (iii) article 5, to specify the additional information that a CCP's competent authority must provide to college members, and to require the use of the central database established under article 17c of EMIR for information exchange. This Regulation will enter into force on the twentieth day following its publication in the Official Journal of the European Union. -
Industry associations urge ESMA to issue a no-action letter on EMIR 3 AAR implementation
11 June 2025
Four industry associations—EFAMA, EACP, ISDA, and FIA—have published a letter addressed to the European Securities and Markets Authority (ESMA) and the European Commission (EC), raising concerns about the implementation of the active account requirement (AAR) under EMIR 3, set to take effect on 24 June. The associations emphasised the importance for the final level 2 regulatory technical standards (RTS) on the conditions of the AAR to be published in the Official Journal of the European Union before the AAR becomes applicable. Without the RTS, EU financial market participants would not be able to understand the requirements that need to be complied with on day 1.
Read more.Topic : Derivatives -
ECB Decision (EU) 2025/1148 on access by Non-Bank Payment Service Providers to TARGET published in OJ
10 June 2025
The Decision (EU) 2025/1148 of the European Central Bank (ECB) adopted on 2 June, has been published in the Official Journal of the European Union. This decision amends Decision (EU) 2025/222 concerning access by non-bank payment service providers (NB-PSPs), namely payment institutions and electronic money institutions, to central bank operated payment systems, including TARGET. Due to delays by some member states in transposing the relevant EU directives into national legislation, the ECB has decided to defer the date from which NB-PSPs can request access to TARGET from 16 June to 6 October. Additionally, the transition period for NB-PSPs to migrate to from their current status (e.g., as addressable BIC holders or reachable parties) to full TARGET participants has been extended from 31 December to 31 March 2026. To ensure a smooth transition, the decision enters into force immediately following its publication in the Official Journal of the European Union. -
EBA opinion on PSD2 and MiCAR
10 June 2025
The European Banking Authority (EBA) has issued an opinion (referred to as the No Action letter) in response to a request from the European Commission (EC) in December 2024, on the interplay between Payment Services Directive (PSD2/3) and Markets in Crypto-Assets Regulation (MiCAR) in relation to electronic money tokens (EMTs). It seeks to clarify how national competent authorities (NCAs) should approach the authorisation and supervision of crypto-asset service providers (CASPs) that engage in EMT-related activities during the transitional period before PSD3 and the Payment Services Regulation (PSR) come into effect. The EBA advises the EC, European Council and European Parliament to avoid long-term dual authorisation requirements and advises NCAs to require PSD2 authorisation only after a transition period ending on 2 March 2026, and only for a defined subset of CASPs—specifically those providing services such as the custody and administration of EMTs or facilitating EMT transfers on behalf of clients. NCAs are encouraged to adopt streamlined authorisation procedures that leverage information already submitted during the MiCAR process. Post-transition, NCAs must ensure entities who are not licensed as a payment service provider (PSP) or have not entered partnership with a PSP, are prevented from providing EMT related services that qualify as a payment service.
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EC call for evidence on savings and investment accounts recommendation
10 June 2025
The European Commission (EC) has issued a call for evidence to gather input on its initiative to develop a European blueprint for savings and investment accounts as part of its recommendation for the savings and investments union (SIU). The initiative aims to encourage retail investors to participate more actively in EU capital markets, aiming to boost long-term returns on their savings while simultaneously enhancing market liquidity and increasing the flow of capital to European businesses. The SIU Communication has emphasised the importance of savings and investment accounts to be based on best practices, with effective models described as being user-friendly, digitally accessible, providing access to a wide range of investment products, offering favourable tax treatment and/or simplified tax compliance, and allowing low or no-cost provider switching. The EC is specifically seeking feedback on these characteristics, as well as their benefits and limitations, to assess their effectiveness in making savings and investment accounts an easy and convenient entry point to capital markets for retail investors pursuing investment opportunities for their savings. The deadline for comments is 8 July, with the recommendation expected to be published in Q3 2025.Topic : Consumer / Retail -
Further suite of technical standards supplementing MiCAR published in the OJ
10 June 2025
Three Commission Delegated Regulations supplementing Regulation (EU) 2023/1114 (the EU Markets in Crypto Assets Regulation) (MiCAR) have been published in the Official Journal of the European Union, namely:- Commission Delegated Regulation - 2025/1141 supplementing MiCAR with regards to regulatory technical standards specifying the requirements for policies and procedures on conflicts of interest for issuers of asset-referenced tokens.
- Commission Delegated Regulation - 2025/1140 supplementing MiCAR with regards to regulatory technical standards specifying records to be kept of all crypto-asset services, activities, orders and transactions undertaken.
Read more.Topic : FinTech -
The UK Private Intermittent Securities and Capital Exchange System (Exemption from Stamp Duties) Regulations 2025
10 June 2025
The Private Intermittent Securities and Capital Exchange System (Exemption from Stamp Duties) Regulations 2025 (SI 2025/666) have been published, alongside an explanatory memorandum. The regulations exempt the transfer of a share traded on a Private Intermittent Securities and Capital Exchange System (PISCES), under the PISCES sandbox arrangements, from all stamp duties. PISCES is an innovative type of market allowing private company shares to be traded intermittently, established under the financial market infrastructure sandbox legal framework prescribed by the Financial Markets and Services Act 2023 (FSMA 2023). The UK chancellor originally announced in the Autumn Budget 2024 that this exemption would be made. The intention of the exemption is to boost the attractiveness of PISCES for the duration of the sandbox, which is set at five years but may be extended by HM Treasury. The regulations will come into force on 3 July. -
FCA publishes final rules on UK PISCES sandbox arrangements
10 June 2025
The UK Financial Conduct Authority (FCA) has published final policy statement PS25/6, accompanied by a press release, setting out the final rules for the Private Intermittent Securities and Capital Exchange System (PISCES) sandbox arrangements, following its December 2024 consultation and April interim statement. PISCES is a new platform designed for intermittent trading of private company shares. The FCA aims for the rules to provide a consistent and coherent framework sandbox alongside the PISCES sandbox regulations. The FCA has confirmed it is not making material changes to the proposals but has incorporated various technical amendments consistent with its interim statement to the final rules.
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EC adopts Delegated Regulation updating AML/CFT high-risk third country List
10 June 2025
The European Commission (EC) has adopted a Delegated Regulation amending Delegated Regulation (EU) 2016/1675 to update the list of high-risk third countries with strategic deficiencies in their anti-money laundering and countering the financing of terrorism (AML/CFT) regimes, pursuant to article 9 of the Anti-Money Laundering and Terrorist Financing Directive VI. The amendment has added Algeria, Angola, Côte d'Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal and Venezuela to the list. These jurisdictions have made high-level political commitments to address these deficiencies and have developed action plans in cooperation with the Financial Action Task Force (FATF). The EC urges the timely and effective completion of these respective action plans. Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, Uganda and the United Arab Emirates have been removed from the list, having demonstrated significant improvements in their AML/CFT frameworks following the implementation of their respective FATF-agreed action plans. The Regulation will enter into force on the twentieth day following that of its publication in the Official Journal of the European Union, which is on 30 June.Topic : Financial Crime and Sanctions -
UK permanently exempts UK and EEA pension schemes from the derivatives clearing obligation
10 June 2025
The Pension Fund Clearing Obligation Exemption (Amendment) Regulations 2025 (SI 2025/670) have been published, alongside an explanatory memorandum. The regulations amend the UK version of Regulation 2012/648 (UK EMIR) and remove the current expiry date of the exemption for UK and EEA pension schemes from the UK EMIR clearing obligation. This follows the publication of the draft version of the regulations in March and mirrors the EU's introduction of a permanent exemption for non-EU pension schemes–further details can be found in our article EMIR 3 – Impact on cleared OTC derivatives markets. The intention of the change, as explained in the explanatory memorandum, is to ensure pension funds remain able to invest in productive assets, as removing the exemption would require them to increase cash holdings and potentially increase pressure on the liquidity management of pension funds, particularly in stressed market conditions. The regulations came into force on 11 June.Topic : Derivatives -
The Financial Services and Markets Act 2023 (Capital Buffers and Macro-Prudential Measures) (Consequential Amendments) Regulations 2025
9 June 2025
The draft UK Financial Services and Markets Act 2023 (Capital Buffers and Macro-prudential Measures) (Consequential Amendments) Regulations 2025 were laid before the UK parliament and have been published, alongside an explanatory memorandum. This draft instrument has made consequential amendments to legislation following the revocation of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014 (S.I. 2014/894), which have been replaced by the new Capital Buffers and Macro-prudential Measures Regulations 2025 (S.I. 2025/653), coming into force on 31 July. The amendments are intended to ensure consistency across the legislative framework and to support the continued effective operation of the capital buffer regime. Specifically, the amendments made by this instrument includes replacing citations to the 2014 Capital Buffers Regulations with references to the new Capital Buffers and Macro-prudential Measures Regulations. It also removes references to provisions in the 2014 Regulations that are not being carried forward, such as those relating to the Global Systemically Important Institutions buffer, which are no longer applicable under the revised framework.Topic : Prudential Regulation -
FCA announces launch of Supercharged Sandbox
9 June 2025
The UK Financial Conduct Authority (FCA) has announced the launch of its Supercharged Sandbox, developed in collaboration with NVIDIA, as part of its AI Lab and in line with the FCA's strategy to foster economic growth. This upgraded sandbox builds on the FCA's existing digital sandbox structure, offering firms access to NVIDIA's accelerated computing and AI enterprise software. This sandbox complements the FCA's AI Live Testing service, which alternately assists those that are further along in development and ready for implementation. By enhancing technical resources, data access and regulatory support, the sandbox aims to foster responsible AI innovation without introducing new regulations, relying instead on existing frameworks. Applications for the Supercharged Sandbox have opened and will close on 11 August. The programme will run for three months, from 30 September to 9 January 2026. Full details, including eligibility criteria and application guidance, are included in the official participation pack.Topic : Artificial Intelligence -
FCA Quarterly Consultation No 48
6 June 2025
The UK Financial Conduct Authority (FCA) has published quarterly consultation paper No 48, accompanied by a press release, inviting feedback on proposed amendments to its Handbook. Key proposals include:- Amending guidance in SUP 6.4 to reflect legislative changes introduced in section 415AA of the Financial Services and Markets Act 2000 (FSMA); the deadline for comments is 14 July.
- Streamlining data reporting by decommissioning certain requirements, including changes to REP009 (consumer buy-to-let mortgage aggregated data) reporting frequency and removing nil return requirements for REP008 (notification of disciplinary actions relating to conduct rules staff other than SMF managers); the deadline for comments is 30 June.
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ECB consults on extension to T2 operating hours
6 June 2025
The European Central Bank (ECB) has published a consultation paper (CP) exploring the extension of operating hours for its real-time gross settlement (RTGS) system, T2. This involves both its daily operational hours and its operational days, while also considering the potential interaction with the operating hours of TARGET2-Securities (T2S), even though T2S is generally outside the scope of the consultation. T2's operating hours were extended previously in 2023, but the ECB is consulting on a further extension given the growing liquidity management challenges for banks due to increasing use of instant payments and the potential introduction of a digital euro.
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FCA operation against unauthorised finfluencers
6 June 2025
The UK Financial Conduct Authority (FCA) has published a press release on its leading international crackdown on illegal financial influencers (finfluencers) in collaboration with regulators from Australia, Canada, Hong Kong, Italy and the UAE. This operation, which commenced on 2 June and was led by the FCA, resulted in three arrests, criminal proceedings against three individuals, the issuance of fifty warning alerts and seven cease and desist letters in the UK. The warning alerts will result in over 650 takedown requests for unauthorised financial promotions on social media platforms and websites. The FCA warns finfluencers that they must act responsibly and only promote financial products if authorised, otherwise they will face serious consequences for non-compliance.Topic : FinTech -
BoE and PRA issue joint consultation on amendments to UK EMIR reporting standards
6 June 2025
The Bank of England and the UK Financial Conduct Authority have published a joint consultation paper proposing amendments to the UK EMIR trade repository reporting requirements, using their powers under article 9 of UK EMIR and section 138P of the Financial Services and Markets Act 2000 (FSMA). The proposed changes follow the full implementation of the UK EMIR Refit in March and aim to make the reporting regime run more smoothly.
Read more.Topic : Derivatives -
The Capital Buffers and Macro-prudential Measures Regulations 2025
5 June 2025
The Capital Buffers and Macro-prudential Measures Regulations 2025 (SI 2025/653) have been laid before the UK parliament and published, together with an explanatory memorandum. The regulations restate relevant provisions of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014, which are set to be revoked by the Financial Services and Markets Act 2023 with effect from 31st July. This forms part of the UK's process of replacing a large body of detailed and technical financial services regulation which remains in legislation as assimilated law, following the UK's withdrawal from the European Union.
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Law Commission consults on reforming private international law for digital assets
5 June 2025
The UK Law Commission has published a consultation on reforms to private international law necessitated by emerging technologies such as decentralised ledger technology (DLT). The Law Commissions state that their project has a particular focus on crypto-tokens, electronic bills of lading and electronic bills of exchange because these assets are prevalent in market practice while also posing novel theoretical challenges to the methods by which issues of private international law have traditionally been resolved. The consultation focuses primarily on wholly decentralised applications of DLT. Among other things, the Law Commission proposes:
- To create a new free-standing information order to help claimants who have lost crypto-tokens through fraud or hacking, obtain information about the perpetrators or the whereabouts of their tokens without having to go through the existing gateways.
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FCA statement on key considerations for any motor finance redress scheme
5 June 2025
The UK Financial Conduct Authority (FCA) has published a statement outlining key considerations for a potential consumer redress scheme, as part of its review into motor finance commission arrangements, following the pending Supreme Court judgement, expected in July. If upheld, the ruling could expose firms to significant liability for failing to disclose commissions.
Read more.Topic : Consumer / Retail -
FOS consults on interest rates for compensation awards
4 June 2025
The Financial Ombudsman Service (FOS) has published a consultation paper seeking views on the interest rates applied to compensation awards. This follows concerns raised in response to a 2024 joint call for input with the UK Financial Conduct Authority, that the current rate of 8% discretionary interest on top of compensation awards is excessively high.
The consultation paper invites feedback on whether the current 8% interest rate should be: (i) maintained at its current level of 8%; (ii) reduced, with respondents to suggest alternative rates and the rationale behind them; (iii) replaced with a tracker rate linked to the Bank of England (BoE) base rate plus 1%, where the base rate is calculated as an average rate over the period that the money was due until the date redress payment is made (FOS's recommended option); or (iv) replaced with a tracker rate linked to the BoE base rate plus 1%, but where the base rate is calculated as the rate at the point of determination of the complaint. FOS also sets out options for implementation, with its preferred approach to apply the new rate to complaints referred from the date the change takes effect.
In addition, FOS is seeking views on the types of exceptional circumstances where it may be appropriate for an ombudsman to ask a firm not to apply interest e.g., by choosing not to award interest for a certain period to reflect a firm's unreasonable conduct that caused delays during the investigation. In such cases, the ombudsman will be required to clearly explain the reasons for departing from the standard rate. The consultation focuses on pre-and-post determination interests, it does not address any other awards an ombudsman may recommend when making a decision. The deadline for comments on the consultation paper is 2 July. FOS aims to publish a policy statement in September, with the intention of implementing any changes as soon as possible thereafter. -
FCA policy statement on finalised ENFG for the publication of enforcement measures
3 June 2025
The UK Financial Conduct Authority (FCA) has published policy statement PS25/5 accompanied by a press release, outlining final revisions to its Enforcement Guide (now abbreviated as ENFG). The revisions follow a two-part consultation process published in February and November 2024.
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FCA and ICO collaborate to support responsible AI Innovation
2 June 2025
The UK Financial Conduct Authority (FCA) and the Information Commissioner's Office (ICO) have published a discussion of how they are collaborating to support responsible innovation, providing regulatory clarity to give firms the confidence to ensure compliance with data protection and financial regulation.
A survey revealed that 33% of firms view data protection and 20% view FCA regulations as a constraint on AI adoption. A roundtable was held on 9 May to explore and understand these challenges. The FCA and ICO report that what came through was very little about specific regulations standing in the way of innovation. Rather, firms understand the broad rules, but many – especially smaller ones – want clearer examples of 'what good looks like' in practice and more opportunities for engagement to build confidence in trying new technologies.
Actions proposed in response include: (i) development of a statutory code of practice for the development or deployment of AI and automated decision making. They will also help firms to develop, test, and evaluate AI as part of the FCA's AI Lab; (ii) a roundtable with smaller firms later this year to better understand the challenges they face in adopting AI; (iii) working together with other regulators in the Digital Regulation Cooperation Forum (DRCF) to explain expectations around who holds responsibility when AI tools are developed by third parties; and (iv) increasing visibility of existing tools and services. The new DRCF workplan commits regulators to coordinate their approach with exploring how their respective regulatory frameworks apply to AI, including agentic AI, and to identify and address any areas of conflict.Topic : Artificial Intelligence