The Basel Committee on Banking Supervision (BCBS) has launched a consultation on a consolidated version of its guidelines and sound practices. This version seeks to reorganise existing guidance into a modular structure, replicating the BCBS's current format for the Basel framework. The guidelines are organised into 13 thematic modules, setting out expectations and practices on specific topics, each of which is divided into further chapters. The BCBS confirms that the consolidation does not introduce new standards or expectations, but removes outdated, duplicative or superseded content, reducing the overall volume of guidance by approximately 75%. Annex 2 to the consultation incudes a table of the current guidelines and sound practices that the BCBS reviewed as part of the consolidation project. It also outlines the proposed recommendation for whether and how each of these documents should be incorporated into the new framework. A new section on its webpage has also launched, but in draft form for feedback. The BCBS seeks feedback on three particular questions: 1) Does the framework effectively remove outdated, superseded and duplicative materials? 2) Does the proposed reorganisation and redrafting achieve the objective of improving clarity and readability without introducing new expectations? 3) Are there particular topics that the BCBS should review more substantively, or areas where further guidance is warranted? The deadline for comments is 26 June.

Directive (EU) 2026/470 amending the EU Corporate Sustainability Reporting Directive (CSRD) and the EU Corporate Sustainability Due Diligence Directive (CSDDD), amongst others, has been published in the Official Journal of the European Union (OJ). The directive implements the proposals under the Omnibus I simplification package, which aims to streamline sustainability reporting and due diligence obligations for businesses. It follows Directive (EU) 2025/794 which implemented the "stop-the-clock" proposal, postponing the application date of certain requirements of the CSRD and CSDDD. The Council of the EU adopted the final text on 24 February. The directive enters into force on 18 March and member states will have until 19 March 2027 to transpose its provisions into national legislation, except for Article 4 on the level of harmonisation, with which they must comply by 26 July 2028 at the latest.

The European Banking Authority (EBA) has published an opinion and related letter regarding the European Commission's (EC') proposed amendments to the final draft regulatory technical standards (RTS). These RTS specify what constitutes an equivalent legal mechanism to ensure that a residential property under construction is completed within a reasonable timeframe, for the purposes of risk-weighting requirements under the Capital Requirements Regulation (CRR). The EBA is resisting the EC' proposal to increase the cap on the risk weight applicable to the protection provider from 20% to 30% under the standardised approach, arguing the 20% threshold represents a core prudential safeguard. It also recommends reinstating the requirement that the completion guarantee be required by the law of the Member State where the residential property is being built. In addition, the opinion provides targeted comments on certain drafting changes introduced by the EC, including the treatment of intragroup arrangements and specific provisions relating to enforceability and force majeure. A revised version of the draft RTS reflecting the EBA's recommended drafting adjustments is set out in Annex I to the opinion. The EBA notes that it remains committed to working constructively with the EC to ensure the timely adoption of a robust and legally sound framework.

The Financial Services and Markets Act 2023 (Commencement No 13) Regulations 2026 were made, following HM Treasury's policy response on applying the Financial Services and Markets Act 2000 model of regulation to the UK Capital Requirements Regulation. The regulations effect the revocation of Articles 4, 4A, 4B and 5 of the UK Capital Requirements Regulation (CRR) on 1 January 2027, by virtue of section 1(1) of, and Schedule 1 to, FSMA 2023. The Articles set to be revoked provide for definitions of terms used in the CRR which will be restated in the Credit Institutions and Investment Firms (Miscellaneous Definitions) (Amendment) Regulations 2026 (except for the definition of "IFPR financial institution" which will be restated in a separate statutory instrument providing for consequential amendments later this year) and PRA rules. Some definitions in Article 4 were already set to be revoked on 1 January 2027 by virtue of the Financial Services and Markets Act 2023 (Commencement No. 12 and Saving Provisions) Regulations 2026.

The UK Payments Vision Delivery Committee (PVDC) has published the payments forward plan, outlining key initiatives expected across retail and wholesale payments and aspects of digital assets in the next three years. The plan sets out the actions required to deliver the government's National Payments Vision and support the continued growth of the sector. It focuses on initiatives led by HM Treasury, the Bank of England, the Financial Conduct Authority and the Payment Systems Regulator, while reflecting wider UK government and public sector activity where relevant, and certain private sector-led workstreams that flow from public authority steers.

Several initiatives are also said to have implications beyond payments. In particular, the FCA will continue to explore potential interoperability between open banking and other smart data schemes, reflecting the government's intention for the open banking framework to form the basis for open finance. The PVDC states that while the plan captures a wide range of initiatives which are relevant to payments and seeks to provide clarity on key milestones, it is not exhaustive and timings remain subject to change. The Committee also confirms that an enhanced focus on payments will be added to the Regulatory Initiatives Grid in 2027.

The UK Payment Systems Regulator (PSR) has published an invitation to comment on a revised draft questionnaire for a proposed survey of UK merchants as part of its review of cross border interchange fee remedies. The survey will gather data on merchants' costs of processing online payments from the EEA using cards and certain alternative payment methods, with the results feeding into a Merchant Indifference Test to inform the appropriate level of cross border interchange fees. The PSR has updated the questionnaire following responses to the PSR's October 2025 consultation on the methodology for developing a price cap remedy. It decided to include questions on SEPA based bank transfer methods, PayPal and Klarna's "Pay in 30 days" product but proposes to exclude American Express. The deadline for comments is 5.00 pm on 5 March, noting that further revisions may be made ahead of fieldwork.

The Committee on Payments and Market Infrastructures (CPMI) has published an updated report on the harmonised ISO 20022 data requirements for enhancing cross‑border payments. This is a key milestone under the G20 roadmap to improve the speed, cost, accessibility and transparency of cross‑border payments. The report, updated from the previous version in 2023, reflects updated regulatory and standardisation developments, provides additional clarifications and introduces an updated and expanded data model set out in a separate technical annex to allow for more frequent updates in line with the ISO 20022 release schedule. The CPMI confirms that the requirements will be maintained at least until the end of 2027 and has established a joint panel with ISO 20022 global market practice groups to support ongoing maintenance and global adoption.

The European Securities and Markets Authority (ESMA) has published a supervisory briefing on algorithmic trading under the revised Markets in Financial Instruments Directive (MiFID II). The briefing is intended to support consistent supervision across the EU and focuses on key areas where supervisory practices have diverged, including pre-trade controls, governance arrangements, testing frameworks and the outsourcing of algorithmic trading systems. It offers guidance to investment firms and national supervisors on key concepts and areas such as the structuring of outsourcing arrangements, the interaction between AI and algorithmic trading and targeted guidance on pre-trade controls. The briefing is non-binding and not subject to a 'comply or explain' mechanism. ESMA will continue to monitor market and technological developments and may update the briefing or develop further convergence tools as needed.

The European Parliament's Economic and Monetary Affairs Committee (ECON) has announced it has adopted a draft report on the European Commission's (EC) Omnibus IV legislative proposal, adopted in May 2025. This proposes a Directive amending the Markets in Financial Instruments Directive II (MiFID II) and the Critical Entities Resilience Directive to simplify various administrative requirements for a new category of "small mid-cap enterprises" (SMCs), in line with the mitigating measures already available for small and medium‑sized enterprise (SMEs). A draft version of the report was published in November 2025. Members of the European Parliament (MEPs) seek to define SMCs as companies with fewer than 1,000 employees and either up to EUR200 million in turnover or EUR172m in total assets, while the EC proposes 750 employees, EUR150m in turnover and EUR129m in total assets. ECON also wants to ensure that SME support and the "think small first" principle remain intact and that thresholds are reviewed every five years.

ECON's proposals include:

• Extending existing SME exemptions from certain General Data Protection Regulation (GDPR) record‑keeping obligations to SMCs where processing does not involve high‑risk data. Sensitive data such as biometric, health, religious, political or criminal‑conviction data remain excluded.
• Amendments to the Markets in Financial Instruments Directive (MiFID) to define SMCs and enable access to SME growth markets and the benefit of simpler prospectus disclosure rules, in line with the updated Prospectus Regulation.

ECON and the civil liberties committees adopted the amendments with strong majorities and authorised inter‑institutional negotiations, which are expected to begin once the EP plenary gives its approval in March.

HM Treasury and the Department for Science, Innovation and Technology have jointly published guidance setting out how entities regulated under the UK Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) can use digital verification services for customer due diligence checks. Under the MLRs, banks and other regulated entities must establish policies, controls and procedures to mitigate the risks of money laundering and terrorist financing. These include customer due diligence measures to verify the identity of customers and understand the purpose behind transactions. Digital identity services which are certified against the trust framework and on the digital verification services register can be used by regulated entities as part of their customer due diligence processes.

Specifically, for individuals, entities can fulfil their obligations under the MLRs by verifying a customer's identity using certified and registered digital identity services. Entities may also use certified and registered digital identity services to fulfil their obligations regarding the verification of company directors. Regulated entities are reminded that they should continue to make their own assessment of a customer's risk and apply enhanced due diligence measures accordingly. While digital identities may be used for identification and verification purposes, entities should not assume that digital identities fulfil all aspects of customer due diligence. Regulated entities will also remain ultimately liable for any failures to apply customer due diligence measures appropriately when using digital identity services. Entities should also ensure that services can meet the required record-retention requirements under the MLRs. The new guidance supplements but does not supersede obligations under the MLRs.

The European Securities and Markets Authority (ESMA) has published a consultation on draft regulatory technical standards (RTS) specifying the circumstances in which transactions resulting from post-trade risk reduction (PTRR) services will be exempt from the clearing obligation under EMIR 3. Amongst other things, the draft RTS establish requirements for the types of services which are eligible for the PTRR exemption (namely compression, portfolio rebalancing and basis risk optimisation) as well as operating conditions for PTRR service providers. The consultation separately considers the PTRR services and transactions to be recorded for the purposes of an exemption from transparency requirements, trading and best execution introduced under the EU Markets in Financial Instruments Regulation (MiFIR) Review (although the MiFIR considerations do not form part of the draft RTS). The deadline for responses is 20 April, after which ESMA expects to submit final draft RTS to the European Commission in Q4.

The Financial Services and Markets Act 2000 (Exemption) (Amendment) Order 2026 has been laid before Parliament. The Order exempts the British Business Bank plc, together with various of its subsidiary companies, and the National Housing Bank Limited from the general prohibition set out in section 19 of the Financial Services and Markets Act 2000. It comes into force on 27 March.

The European Banking Authority (EBA) has announced that given the extensive work already carried out, it will not prioritise the monitoring of legacy instruments, while maintaining its review of the quality of own funds and eligible liabilities. The EBA is confident that competent authorities will continue to monitor the remaining limited and specific cases on the basis of the guidance provided, including in its opinion on the prudential treatment of legacy instruments and its opinion on legacy instruments: outcome of its implementation.

The Basel Committee on Banking Supervision (BCBS) has issued a press release following its virtual meeting on 24–25 February, at which it discussed recent market developments and the global banking outlook. With respect to vulnerabilities in government bond‑backed repo markets, the BCBS notes that the implementation of its finalised counterparty credit risk management guidelines, particularly in relation to securities financing transactions and collateral management, should help mitigate these risks but it will monitor implementation progress. Regarding the expedited targeted review of the prudential standards for banks' cryptoasset exposures, an update on progress will be provided later in the year. The BCBS has approved a technical amendment to the standardised approach to operational risk, following its previous consultation, and a response to a frequently asked question on the market risk framework. Both will be published in March.

The European Securities and Markets Authority (ESMA) has published its final report with draft regulatory technical standards (RTS) amending the RTS on the clearing thresholds in Delegated Regulation (EU) No 149/2013, under the European Markets Infrastructure Regulation (EMIR). The amendments reflect changes introduced by EMIR 3, which revise the clearing threshold regime by moving from the exchange traded derivatives (ETD) versus over the counter (OTC) distinction to a methodology based primarily on uncleared OTC transactions. This approach aims to better capture the benefits of central clearing. Under the new framework, financial counterparties (FCs) must calculate both their uncleared positions and aggregate OTC exposure (cleared and uncleared), while non financial counterparties (NFCs) need only consider their uncleared positions.

In the final report, ESMA sets revised clearing thresholds that focus on uncleared OTC derivatives, while keeping aggregate thresholds for FCs in asset classes subject to the clearing obligation unchanged at EUR3 billion for interest rate derivatives (IRDs) and EUR1bn for credit derivatives.

Read more.

The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have launched a joint consultation on draft revised guidelines on the suitability assessments of members of the management body and key function holders at banks and investment firms. This follows the earlier version published in 2021. The proposed revisions form part of a broader suitability package aimed at harmonising suitability assessments and strengthening supervisory convergence across the EU. The package also reflects new requirements introduced for large institutions by the Capital Requirements Directive, as amended by Directive 2024/1619 (CRD VI) and the Markets in Financial Instruments Directive, as amended by Directive 2014/65/EU (MiFID II).

The revised guidelines cover:

• The use of ex‑ante applications for cases where competent authorities otherwise conduct ex‑post assessments.
• Mandatory suitability assessments for certain key roles, including heads of control functions and chief financial officers.
• The new CRD VI requirements for third‑country branches.

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The UK Financial Conduct Authority (FCA) has published consultation paper CP26/7 outlining its proposed approach to implementing the FCA led remedies arising from the credit information market study. The study introduced a package of measures aimed at improving the credit information market, including proposed new FCA rules and guidance, reforms to industry governance arrangements and other industry-led remedies. A new Credit Information Governance Body is now in place and industry participants are progressing the industry-led remedies.

This consultation focuses on the FCA-led remedies, proposing new Handbook rules to improve the coverage, quality and consistency of consumer credit information. Specifically:

• Remedy 2A: a mandatory reporting framework requiring firms that share consumer credit information with at least one designated consumer credit reference agency (DCCRA) to share all such information with all DCCRAs. The FCA proposes to designate Equifax, Experian and TransUnion but allows for the designation of further credit reference agencies (CRAs) or the de-designation, if appropriate.
• Remedy 2D: requirements to improve data accuracy, error correction and dispute handling and to require firms to report satisfied County Court Judgments and decrees. Some obligations relate to information provided under the mandatory reporting requirement, while others have a broader application.

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The UK Financial Conduct Authority (FCA) has published an updated webpage on the CCR009 return for relevant ancillary credit firms. The update confirms that, for data covering 1 January 2025 to 31 December 2025, the reporting window will open on 2 March. The webpage also includes a new explanatory video. Firms will have 40 business days to submit their returns via the My FCA portal. The FCA reiterates that annual reporting will be based on the calendar year rather than firms' accounting reference dates.

The UK Financial Conduct Authority (FCA) has published a new webpage introducing its regulatory priorities reports, introducing nine annual, sector‑specific reports to replace its previous portfolio letters. The FCA explains that this new approach is intended to provide a clearer and more consistent articulation of regulatory expectations, setting out the key priority areas for each sector, alongside related work the FCA plans to undertake over the coming year. Firms are expected to assess which priorities apply to them in light of their business models, including whether aspects of their activities fall within the scope of other sector reports. The FCA notes that the reports have been shaped by feedback from firms and trade bodies, and that it will continue to respond to emerging market events and risks, which may result in new or reprioritised supervisory work beyond what is set out in the reports. The FCA confirms that reports on consumer investments, retail banking, mortgages, consumer finance, wholesale buy side, wholesale markets and payments are all expected in March.

The European Commission (EC) has adopted a Delegated Regulation amending Delegated Regulation (EU) 2015/63 on ex ante contributions to resolution financing arrangements. The amendments align the framework with recent changes to the Bank Recovery and Resolution Directive (BRRD), the Investment Firms Regulation (IFR) and the Investment Firms Directive (IFD). They also aim to reduce administrative burden and improve proportionality. The amendments include:

• Updates to the definition of "investment firms" and "competent authority".
• A simplified contribution methodology for certain Class 2 investment firms (with an option to apply risk‑adjusted calculations where this results in a lower contribution).
• Removal of the risk indicator based on own funds and eligible liabilities held in excess of the minimum requirement for own funds and eligible liabilities (MREL). This does not imply that MREL-related aspects will no longer be considered when risk-adjusting the contributions, however. Removal of the denominator from the interbank loans and deposits indicator. A limitation period for requesting restatements and revisions of data submitted to resolution authorities.

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The Bank of England (BoE) has published a policy statement confirming its decision to extend CHAPS settlement hours by introducing an early morning extension (EME). This will move the start of settlement from 06:00 to 01:30 under an optional participation model, with implementation targeted for September 2027 (subject to final confirmation of the planned timelines with impacted CHAPS direct participants (DPs)). The EME follows the July 2025 consultation and is intended to support earlier settlement, improve liquidity management, enhance operational resilience and better align UK payment infrastructure with international markets. While CHAPS DPs may optionally send payments during the extended window (with no restrictions on payment types that can be sent), all participants will be able to receive payments from 01:30. The most critical payments, including CLS pay-ins and payments for central counterparties initial and variation margin calls, are not expected to move into the EME.

The BoE also confirms that it will not, at this stage, proceed with extending the evening CHAPS contingency window due to limited demand. It will, however, continue to explore options including additional settlement on certain bank holiday Mondays, a longer weekday operating window, and wider reforms as part of its longer-term roadmap towards near 24x7 settlement. It plans to publish a consultation paper examining the potential near 24x7 extension of RTGS/CHAPS settlement hours, discussing opportunities, challenges, use cases and the steps required to deliver it in the spring.

The European Securities and Markets Authority (ESMA) has issued a statement reminding firms of their obligations under existing national product intervention measures on contracts for differences (CFDs). The statement is in light of the growing offering of derivatives marketed as "perpetual futures" or "perpetual contracts", including those providing leveraged exposure to cryptoassets such as Bitcoin.

ESMA emphasises that where such products meet the definition of a CFD, they are likely to fall within the scope of existing intervention measures adopted by national competent authorities and must therefore comply with applicable product intervention requirements. This includes leverage limits, mandatory risk warnings, margin close-out rules, negative balance protection and the prohibition on monetary and non-monetary incentives. The statement further reminds firms that derivatives require a narrowly defined target market and an aligned distribution strategy. Firms should be carrying out appropriateness assessments in accordance with the relevant requirements for complex financial instruments when providing non advised services, and must identify, prevent and manage any conflicts of interest arising from the offering of these products. While the public statement specifically refers to derivatives marketed as perpetual futures or perpetual contracts, ESMA states that firms should assess whether national product intervention measures apply to all derivatives offered, irrespective of their commercial name.

The UK Financial Conduct Authority (FCA) has published a new webpage about the consumer duty. The webpage explains how the consumer principle is underpinned by three cross-cutting rules requiring firms to act in good faith, avoid foreseeable harm and support customers to pursue their financial objectives. The FCA reiterates the four core outcomes it expects firms to deliver, relating to the governance of products and services, price and value, consumer understanding and consumer support and expands upon its expectations of firms in ensuring them. Specifically, the FCA expects firms to ensure that products and services are fit for purpose and targeted appropriately, that pricing represents fair value relative to the benefits provided, communications are clear, fair and timely, and that customer support is accessible and effective throughout the product lifecycle.

While the FCA recognises that implementation may look different for smaller firms, it emphasises that all firms are expected to deliver the same standard of good consumer outcomes. In parallel, it updated its webpage on good practice and areas for improvement on the requirements for consumer duty board reports, adding specific guidance for smaller firms. The FCA recognises that these firms face different challenges and outlines suggestions relating to governance, monitoring and outcomes, actions taken to comply with the consumer duty and future business strategy, to help them meet the requirements. The FCA is open to considering more targeted work where it would be beneficial and it will continue to engage with the Smaller Business Practitioner Panel and other smaller firm stakeholders.

The Financial Stability Board (FSB) has announced it will conduct a thematic peer review on the implementation of public sector backstop funding mechanisms. The review will evaluate progress by FSB member jurisdictions in implementing Key Attribute 6 (funding of firms in resolution) and the related guiding principles on temporary funding to support the orderly resolution of global systemically important banks (G SIBs) and other banks that may be systemically significant or critical in failure ("banks systemic in failure"). A summary terms of reference is published which details the scope, objectives and process for the review.

The FSB seeks to examine: (i) how financial stability vulnerabilities associated with the liquidity needs of a G-SIB or banks systemic in failure, differ across jurisdictions during resolution and how these vulnerabilities are evolving; (ii) the design, credibility and safeguards of public sector backstop funding mechanisms; and (iii) the challenges experienced in addressing resolution funding and its impact on public sector backstop funding mechanisms. The FSB issued a questionnaire to member authorities to collect information and also seeks feedback from financial institutions, industry and consumer bodies, academics and other stakeholders. The deadline for submissions is 31 March, with the peer review report expected to be published in October.

The Single Resolution Board (SRB) has published updated operational guidance on separability and transferability for transfer tools, following the August 2025 consultation. The revised guidance is not intended to introduce new deliverables but to streamline and clarify existing expectations, align with the guidance on resolvability self-assessment and support the shift from resolution planning to operationalisation, testing and crisis preparedness. It is accompanied by an operational guidance on transfer playbooks and a new annex on testing separability and transfer strategies. A feedback statement was published alongside the guidance.

The European Commission has adopted a Delegated Regulation amending the Prospectus Regulation (EU) 2019/979 to align the prospectus metadata and incorporation-by-reference framework with the reforms introduced by the Listing Act (Regulation (EU) 2024/2809).

The regulation updates the machine‑readable data required for prospectus classification to reflect the new EU Follow‑on Prospectus and EU Growth Issuance Prospectus introduced under the Listing Act. It also removes obsolete references to prospectus types that will cease to apply from 5 March, including the simplified prospectus for secondary issuances and the current EU Growth Prospectus.

Additionally, the regulation updates the list of documents that may be incorporated by reference into a prospectus. This includes documents approved or filed under the former Prospectus Directive (2003/71/EC) as well as optional pre‑issuance sustainability disclosures under the European Green Bonds Regulation (EU) 2023/2631. These changes aim to reduce issuer burden while maintaining investor protection. Most provisions will enter into force 20 days after its publication in the Official Journal of the European Union, with key operational changes (under Article 1, points (1), (2) and (4)) expected to apply from 10 July.

The European Banking Authority (EBA) has published a follow‑up report to its 2022 peer review on information and communication technology (ICT) risk assessment under the Supervisory Review and Evaluation Process (SREP). The report reviews the recommendations issued to competent authorities in 2022, considering progress made following the application of the Digital Operational Resilience Act (DORA) since January 2025, and the forthcoming integration of the ICT SREP Guidelines into the revised SREP guidelines under DORA.

The EBA notes substantial progress by competent authorities in strengthening ICT risk supervision, largely driven by DORA's implementation. Improvements include enhanced supervisory capacity and expertise, greater use of horizontal analyses and more systematic application of supervisory tools. ICT risk sub categories are now embedded across almost all authorities. However, the EBA emphasises that further work and investment are still required to ensure consistent and effective ICT risk supervision across the EU. It encourages authorities to fully integrate ICT risk methodologies and sub categories into their supervisory processes and to continue efforts to promote supervisory convergence and operational resilience ahead of the forthcoming revised SREP guidelines.

The European Securities and Markets Authority (ESMA) has announced the immediate withdrawal of its guidelines on MiFID II/MiFIR obligations relating to market data, on the basis that the clarifications covered in the guidelines have been incorporated into regulatory technical standards (RTS) which entered into force on 23 November 2025.

The European Securities and Markets Authority (ESMA) has launched a consultation on draft regulatory technical standards (RTS) specifying the relevant conditions under which public guarantees, public bank guarantees and commercial bank guarantees may be accepted as collateral under the revised European Market Infrastructure Regulation (EMIR 3). Specifically, stakeholders, including non-financial counterparties, are requested to share views on: (i) the conditions under which public, public bank and commercial bank guarantees may be accepted as CCP collateral; (ii) the criteria for treating certain debt instruments as eligible under CCP investment policies; and (iii) the highly secure arrangements in which emission allowances posted as margins or default fund contributions can be deposited.

There is no mention of whether letters of credit, which are understood to be the instruments that are most desirable to be used in this context, would count as guarantees for such purposes, although ESMA has previously treated the two terms as synonymous. The deadline for responses is 30 April, after which ESMA expects to submit final draft RTS to the European Commission in Q4.

The European Parliament's Committee on Economic and Monetary Affairs (ECON) has published a draft report (dated 19 February) on digital assets and challenges for the competitiveness and integrity of the EU's financial system. The report explores the impact of the emergence of digital assets on the financial services sector and what that means for the regulatory framework. It discusses several ongoing risks in the digital assets sector, including, from a macro prudential standpoint, the need to strengthen data capabilities to better assess financial risks and the interconnectedness of digital assets with the broader financial system. The report also notes the role cryptoassets play in circumventing anti money laundering/countering the financing of terrorism requirements and sanctions.

It includes a motion for a European Parliament resolution which, amongst other things, calls on the various European authorities to strengthen the supervisory dialogue on significant multi-function groups (MFGs) and underlines the need to align the MiCAR policy framework for significant non-bank MFGs. It calls on the European Commission to come forward with a legislative proposal urgently to provide legal certainty on stablecoin multi issuance, and to provide strong prudential safeguards, robust cooperation arrangements, and enhanced crisis management protocols. It also stresses that interoperability is crucial in digital finance, and that legal entity identifier/verifiable legal entity identifier-type approaches should be assessed as infrastructure-grade tools. The EU's dependence on non-EU service providers for DLT infrastructure is also flagged as a matter of 'regret'.

The UK Prudential Regulation Authority (PRA) has published policy statement PS5/26, finalising amendments to its framework for credit unions wishing to invest in credit union service organisations (CUSOs). Following its June 2025 consultation, the PRA largely finalised its policy as consulted on, including: (i) amending the Credit Unions Part of the PRA Rulebook to clarify that credit unions may invest in CUSOs; (ii) updating Supervisory Statement (SS)2/23 to add a new chapter setting out expectations for credit unions that invest in or use CUSOs; and (iii) making consequential changes to chapter 17 of SS2/23 following the deletion of SS20/15.

The PRA has also made targeted changes in response to feedback including:

• Amending the credit union investment rules to provide that credit unions may invest in CUSOs that serve other UK-regulated mutuals (those with a Part 4A permission).
• Clarifying that a credit union may partner with non-credit unions to own a CUSO. 
• Introducing safeguards to ensure the risks associated with the expansion of CUSO scope in this way are managed.
• Increasing the maximum investment that a credit union can make in a CUSO from 5% to 7.5% of its capital, together with clarifications on the practical application of the limit.

The rule changes took effect on 20 February, with the new supervisory expectations in the new chapter of SS2/23 applying from 20 August, allowing a six‑month implementation period.

The European Securities and Markets Authority (ESMA) has published a supervisory briefing on the representativeness obligation under the active account requirement (AAR), setting out its supervisory expectations for counterparties subject to the AAR. The AAR, under the revised European Markets Infrastructure Regulation (EMIR), requires in scope counterparties to clear a representative volume of trades through their active accounts at EU central counterparties (CCPs). These trades must cover the most relevant derivative sub categories and mirror the activity those counterparties currently clear at Tier 2 CCPs.

The briefing provides guidance on how counterparties should identify the most relevant derivatives sub‑categories and how they should report trades and comply with related reporting obligations, including a worked example. ESMA states that counterparties subject to the AAR representativeness obligation are expected to follow the guidance to meet their regulatory requirements.

The UK Financial Conduct Authority (FCA) has published a new webpage with guidance aimed at improving the quality of applications for authorisation and registration by payments firms and digital asset firms. The FCA outlines its regulatory expectations through a series of video guides covering common deficiencies and best practices. For both payments firms and digital asset firms, the videos cover the role of a Money Laundering Reporting Officer (MLRO), highlighting common anti‑money laundering compliance gaps and fitness and propriety standards, and the application process for authorisation. Other video guides are directed specifically at payment firms, focusing on how firms (including e-money firms) can prevent financial crime through business‑wide risk assessments, senior management responsibilities and controls against authorised push payment fraud, as well as on demonstrating an effective governance structure as part of an application for authorisation.

The European Securities and Markets Authority (ESMA) has launched a consultation on proposed amendments to its guidelines on delay in the disclosure of inside information, under the Market Abuse Regulation (MAR). ESMA aims to streamline requirements and reduce administrative burdens for issuers. The proposals aim to align the guidelines with the changes introduced by the EU Listing Act to ensure compatibility with the new regime. Specifically, under the Act, from June onwards, issuers will no longer be required to immediately disclose inside information relating to protracted processes before those processes are completed. Consequently, ESMA proposes removing the existing references to legitimate interests that are linked to such protracted processes. It also introduces additional legitimate interests for delayed disclosure, including where a public authority requests non-disclosure of inside information, where additional time is needed to collect information, or where the issuer is involved in multiple similar procurement processes. ESMA also proposes deleting the section about the "no misleading the public" condition from the guidelines, reflecting its removal from MAR, and replacing it with the requirement that any delayed disclosure must not contradict the issuer's most recent public announcement on the same matter. The deadline for responses is 29 April, with a final report expected in Q4.

The Bank of England (BoE) has published its policy statement confirming the fees regime for financial market infrastructure (FMI) supervision for the 2025/26 fee year, following its October 2025 consultation. The BoE confirms that it will adopt the proposals set out in the consultation paper, including:

• Maintaining existing fee ratios across FMI categories and introducing a new Category 3 for UK payment systems, to align with other FMI types where this categorisation already exists. The BoE will provide further detail on the timing for applying the new fee ratios and implementing Category 3 in the 2026/27 FMI fees consultation paper, which is expected in April (rather than October as in previous years), following stakeholder feedback requesting earlier consultations on future annual fees. This approach will be maintained going forward.
• Increasing certain fees, notably for central counterparties (CCPs) and central securities depositories, to reflect expanded policy and rule‑making responsibilities under the Financial Services and Markets Act 2023, and to recover one‑off costs associated with developing the UK CCP rulebook over a three‑year period.

The BoE also confirms updated hourly rates for special supervisory projects, the treatment of under‑ or overspends from the 2024/25 fee year, and that enforcement fine revenues cannot be used to offset supervisory costs. It also confirms that HM Treasury are exploring options to increase the statutory fee cap for payment systems in future and will consult on any proposals in due course.

The UK Prudential Regulation Authority (PRA) has published consultation paper CP3/26 setting out proposed amendments to the PRA Rulebook to accommodate HM Treasury's (HMT) planned overseas prudential requirements regime (OPRR), which will restate and modify certain existing Capital Requirements Regulation (CRR) equivalence provisions in UK legislation. HMT consulted on the creation of the regime in July 2025 and published its response on the same day, and in parallel to the PRA's consultation. The PRA's proposals are intended to ensure alignment between the PRA Rulebook and the OPRR framework, while largely preserving existing prudential outcomes and imposing no material additional costs on firms. Key changes include targeted amendments across multiple CRR-related parts of the Rulebook (including credit risk, market risk, securitisation and reporting) to clarify the treatment of exposures to overseas institutions and covered bonds following HMT designation decisions under the OPRR. The PRA also proposes minor consequential changes to Statement of Policy 5/15 on Pillar 2 capital. The deadline for responses is 2 April. The proposed changes are expected to take effect alongside other elements of the Basel 3.1 package on 1 January 2027.

HM Treasury (HMT) has published a policy update response on applying the Financial Services and Markets Act 2000 model of regulation to the UK Capital Requirements Regulation (UK CRR), following its July 2025 consultation on Basel 3.1, the overseas recognition regimes and key UK CRR definitions. In this response, HMT broadly maintains its proposed approach while making targeted clarifications in response to feedback.

On Basel 3.1, HMT notes support for facilitating the UK Prudential Regulation Authority's (PRA) delayed implementation of aspects of Basel 3.1 and reiterates that the legislative framework is intended to support the PRA's firm‑facing rules, while committing to clearer communication and coordination of timelines across the wider FSMA transition.

HMT will establish the overseas prudential requirements regime (OPRR) to restate existing equivalence decisions made under the UK CRR equivalence regimes so that jurisdictions currently deemed equivalent are treated as designated. It will also introduce a new power through the OPRR to designate jurisdictions for overseas covered bonds, with current liquidity treatment maintained in the short term while further prudential changes are explored with the PRA. Alongside this response, the draft regulations are published for the OPRR, on which HMT seeks views by 2 April.

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The UK Financial Conduct Authority (FCA) has published a statement clarifying how issuers should comply with notification requirements for new shares admitted to trading following the commencement of the Public Offers and Admissions to Trading Regulations 2024 (POATRs) on 19 January.

Under the new regime, issuers are required by the Prospectus Regime Manual (PRM 1.6.4R) to notify a Regulatory Information Service (RIS) of admissions to trading within 60 days. However, this sits alongside existing UK Listing Rules (UKLR) which require issuers to announce "as soon as possible" the results of new issues or public offers of equity securities. This creates uncertainty, particularly for issuers that previously relied on an exemption under the block listing regime, which had allowed issuers who regularly issue new listed shares to make periodic (rather than transaction-by-transaction) disclosures. Before the introduction of the POATRs changes, this rule (at UKLR 6.4.4R(4)) included a carve-out for block listings of securities. However, on 19 January the rule was amended so that the carve-out was removed.

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The UK Prudential Regulation Authority (PRA) has published an updated webpage for banks, building societies and investment firms, notifying it has published an updated Branch Return Excel form and schema to align with changes introduced in PS6/25.This policy statement introduced updates to Supervisory Statement 5/21 (SS5/21) and branch reporting requirements for international firms operating in the UK. The changes are effective from 1 March and so the updated form must be used from reporting reference date 30 June. The PRA has also published a common problems document, as well as an updated version of the Branch Return Q&A, which now includes additional clarifications on completing the whole firm liquidity data section of the return and addressing firms' queries on remote booking. 

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The European Securities and Markets Authority (ESMA) has published a statement providing practical guidance to national competent authorities (NCAs), issuers and their advisers on the application of the revised Prospectus Regulation (PR) introduced by the EU Listing Act. ESMA clarifies that under the transitional regime in Article 48a of the PR, registration documents and universal registration documents approved or filed up to 4 June fall within scope of the regime and may continue to be used in prospectuses for the duration of their validity period. ESMA notes that these documents will need to continue to be kept up to date via supplements and amendments as the version of the PR in force on the approval or filing of the documents will continue to apply to them.

ESMA also offers guidance on the disclosure to be included in EU Follow-on prospectuses and EU Growth issuance prospectuses pending the application of the forthcoming Delegated Act amending Commission Delegated Regulation (EU) 2019/980. ESMA expects NCAs to follow the approach outlined in the statement, enabling issuers and advisers to rely on the guidance.

The European Central Bank (ECB) has announced a collaboration with the ONCE Foundation for Cooperation and Social Inclusion of People with Disabilities to ensure that the proposed digital euro is accessible to all users, including people with disabilities, older adults and those with limited digital skills. Under the agreement, the ECB will benefit from the foundation's expertise in providing technical advice on accessibility requirements and features for the digital euro application, collaboration on its design and testing accessibility functionalities in early prototypes once available. The collaboration aims to exceed the minimum legal requirements under the European Accessibility Act. The ECB intends to embed accessibility considerations from the earliest stages of design and development, ensuring that the application is clear, understandable and easy to navigate. The outcome of this work could also inform user experience requirements for payment service providers.

The UK Financial Conduct Authority (FCA) and the UK Prudential Regulation Authority (PRA) have published consultation papers on phase 2 of the UK reforms to the securitisation framework. As a high-level overview, the FCA and PRA consultations primarily concern further changes to non-prudential securitisation rules in the relevant rulebooks.

These include rules in relation to:

• Due diligence.
• Transparency, including changes to UK reporting templates.
• Risk retention, including "L-shaped" risk retention.
• Credit granting standards.
• Notification in respect of simple, transparency and standardised securitisations.
• The ability to invest in certain re-securitisations.

The FCA's consultation paper, CP26/6, further contains a discussion paper on the scope of application of the securitisation rules. The PRA's consultation paper, CP2/26, also contains proposals on the prudential treatment (including an additional internal ratings based capital model treatment) for loans benefiting from the mortgage guarantee scheme or similar private schemes, and also disapplying certain transparency and reporting requirements for such securitisations.HM Treasury has separately confirmed that it will work with the FCA and the PRA on any legislative changes it considers necessary, which will be included in its forthcoming statutory instrument to be laid before Parliament.

The deadline for responses to both consultation papers is 18 May.

The European Commission (EC) has published a proposal for a Directive to codify and replace Directive 2002/87/EC on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate. The proposal aims to improve legal clarity and accessibility by consolidating the existing framework governing cross‑sectoral supervision of financial conglomerates, including rules on capital adequacy, risk concentration, intra‑group transactions, governance, supervisory coordination and cooperation with third‑country authorities, into a single, clear and consolidated instrument.  It preserves the current supervisory structure, including the role of a designated coordinator, the involvement of the European Supervisory Authorities through the Joint Committee, and the use of delegated and implementing acts for technical adaptations. The codified Directive would repeal Directive 2002/87/EC upon entry into force, while maintaining member state obligations on transposition and application dates under the existing regime.

The UK government, through the UK Office of Financial Sanctions Implementation (OFSI), has launched a call for evidence on the application of the ownership and control test under the UK Financial Sanctions Regulations. The OFSI seeks industry input on how the test operates in practice and where firms experience challenges in implementing the regulations. Specifically, firms are requested to share evidence and practical examples of: (i) how often "hypothetical control" is present in real financial sanctions cases; (ii) its effects on compliance costs, legal risk and business decision‑making including de‑risking; and (iii) whether existing legal concepts and typologies of control are helpful in applying ownership and control regulations. OFSI states the evidence gathered will inform its assessment of whether the current approach is clear, effective and proportionate, with the aim of ensuring sanctions remain tough on those they target while workable for legitimate businesses. The call for evidence is open to businesses, financial institutions, legal and compliance professionals and other interested parties. The deadline for responses is 11:59 pm on 13 April.

The European Commission (EC) has published two new webpages announcing the forthcoming adoption of two draft Delegated Regulations. The first, under Directive (EU) 2024/1640 (AMLD6), will set out the indicators for assessing the gravity of failures by member states to report adequate, accurate and up-to-date information to the central registers, including in cases of repeated failures.

The second, under Regulation (EU) 2024/1624 (AMLR), will define the categories of breaches subject to penalties, liable persons, indicators of the gravity of breaches and criteria to consider when setting the level of penalties of beneficial ownership transparency requirements. The texts of both Delegated Regulations have not yet been published and no consultation details have yet been provided. The EC plans to adopt them in Q3.

The Financial Action Task Force (FATF) has published updates on high-risk jurisdictions and jurisdictions under increased monitoring. There are no changes to the high-risk jurisdictions, although the FATF notes where improvement is still required and confirms it may consider countermeasures if insufficient progress is made by June. For the jurisdictions under increased monitoring, two jurisdictions have been added, bringing the total number of jurisdictions under increased monitoring to 22. The FATF also remarks on improvements for certain jurisdictions and any identified next steps.

The European Banking Authority (EBA) has published final guidelines on proportionate retail diversification methods under Article 123(1) of the Capital Requirements Regulation (CRR). The guidelines seek to establish a harmonised and more proportionate framework for assessing whether retail portfolios qualify for the preferential 75% risk weight for retail exposures under the standardised approach for credit risk. Under Basel III, a baseline granularity benchmark of 0.2% applies, meaning that retail portfolios are sufficiently granular if no aggregate exposure to a single counterparty or group of connected clients exceeds 0.2% of the overall retail portfolio.

The 2024 consultation presented two alternatives for assessing diversification, and the final guidelines confirm the adoption of the "one-step" approach, on the grounds that it is more proportionate and less burdensome than the iterative method that was also proposed. The consultation originally proposed a diversification threshold of 5%, which has been raised to 10%. This means that institutions may exceed the baseline provided that no more than 10% of the eligible retail portfolio exceeds the 0.2% benchmark. The EBA confirmed that it increased the threshold in its final guidelines to ease the impact on small and medium-sized institutions.

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The Single Resolution Board (SRB) has announced that, for the third consecutive year, it will not impose levies on banks to finance the single resolution fund (SRF). The SRF is an emergency fund that can be called upon in times of crisis. It can be used to ensure the efficient application of resolution tools for resolving failing banks, after other options, such as the bail-in tool, have been exhausted. Having confirmed that the fund's target level remains met as at the end of 2025, the SRB states that unless circumstances change, banks will not be required to make contributions for the coming year, with the target level to be verified again at the beginning of 2027.

The Bank of England (BoE) has published a policy statement on the partial revocation of the UK technical standard (UKTS) 2018/1624 on resolution reporting, specifically relating to COREP13 templates. Following the September 2025 consultation, the BoE is implementing the proposals as consulted on by deleting the six reporting templates that collect on- and off-balance sheet data from firms for resolution planning. The aim is to reduce duplicative and non-essential reporting for firms regulated by the UK Prudential Regulation Authority. The changes will be effective from 1 April.

Due to temporary systems limitations, the templates may remain in the RegData reporting system for some time after their revocation date. For the time being, firms are requested to use negative filing indicators for the six deleted reporting templates. The BoE expects to remove the deleted templates from the RegData reporting system in due course, thereby eliminating the need for firms to report negative filing indicators for these templates.

The European Commission (EC) has launched a consultation on a draft Delegated Regulation supplementing the European Market Infrastructure Regulation (EU) No 648/2012 (EMIR) as amended by EMIR 3 (EU) No 648/2012). The draft Delegated Regulation specifies the fees to be charged by the European Banking Authority to counterparties for the validation of pro forma models, and any changes to those models, used by those counterparties to mitigate the risk of their uncleared over-the-counter derivatives portfolios. It also specifies both the one off fee charged for validating any new pro forma models and the annual fee charged for validating changes to already validated pro forma models. The deadline for feedback is 12 March.