The European Banking Authority (EBA) has published final draft amending regulatory technical standards (RTS) shortening the timing for the application for prior permission to reduce own funds and eligible liabilities instruments under Articles 77, 78 and 78a of the capital requirements regulation (Regulation 575/2013). The amendments shorten the timeframe for competent and resolution authorities to process an institution's application to reduce own funds and eligible liabilities instruments from four to three months on the basis that authorities now have sufficient experience with these procedures to carry out the assessments more efficiently. In addition, following the exemption introduced by Directive 2024/1174 (the Daisy Chain Directive), which removes the requirement for liquidation entities to obtain prior permission to reduce eligible liabilities instruments, the provisions setting a simplified procedure for these entities have been deleted. The draft regulatory technical standards will be submitted to the EU Commission for endorsement following which they will be subject to scrutiny by the European Parliament and the Council before being published in the Official Journal of the European Union (OJ). They will enter into force 20 days after publication in the OJ.

The UK Financial Conduct Authority (FCA) has published a revised version of its Payment Services and Electronic Money Approach Document, updating its guidance on exemptions from strong customer authentication (SCA), including the contactless payments exemption. Among other things, Chapter 20 of the Approach Document now states that:

• Payment service providers (PSPs) are allowed not to apply SCA at the point of sale where the payer initiates a contactless electronic payment transaction that has been reasonably identified by the payer's PSP as low risk. This exemption is subject to compliance with Article 2 of the SCA regulatory technical standards (SCA-RTS).
• In addition to the factors outlined in Article 2(2) of the SCA-RTS, the PSP may consider additional risk-based factors to help it identify whether a transaction is low risk, such as the payer's normal spending or behavioural pattern or their location.
• The PSP may also reasonably identify a transaction as low risk based on the value of the individual contactless electronic payment transaction, the cumulative value of previous contactless electronic payment transactions and/or the number of consecutive contactless electronic payment transactions since SCA was last applied. Whilst not required to do so, PSPs may place limits on the use of contactless payments to reflect these factors.

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The International Organization of Securities Commissions (IOSCO) has published a consultation report on good practices concerning over-the-counter (OTC) commodity derivatives markets. Feedback is sought on a proposed set of good practices intended to:

• Strengthen the implementation of Principles 12 (authority to obtain information), 15 (intervention powers in the market), and 16 (unexpected disruptions in the market) of IOSCO's principles for the regulation and supervision of commodity derivatives markets. In particular, the proposals relate to the collection and aggregation of OTC derivatives data, including beneficial ownership, to support effective surveillance, alongside enhanced information-sharing and cooperation between exchanges and regulators, particularly in times of stress.
• Set expectations about timely regulatory intervention to prevent or address disorderly market conditions, particularly where risks in OTC markets may spill over into exchange-traded markets.
• Promote proportionate, risk-based, and market specific approaches to OTC data collection and intervention powers.

The report invites comments generally on the proposed guidance and asks ten specific questions. The deadline for comments is 19 June.

HM Treasury has published its response to the 2024 call for evidence on reforming the credit union common bond framework. The review sought to assess whether parts of the common bond requirement should be updated to support sustainable growth and ensure the framework remains fit for purpose. Following feedback, HMT confirms it will legislate, when Parliamentary time allows, to:

• Increase the potential membership cap on the locality bond from 3 million to 10million.
• Permit students to join locality-based credit unions, in addition to those who reside or work in the geographical area.
• Allow credit unions to admit members' relatives into a credit union regardless of whether they live in the same household as the qualifying member, as well as individuals who live in the same household as the qualifying member. This is intended to reflect modern family dynamics and broaden the membership base.
• Allow credit unions to retain members of occupation and employer bonds as fully qualifying members upon retirement, including allowing retirees to join a credit union after retirement has begun. This will also apply to locality bonds where members are eligible based on employment within the locality.

Feedback on wider issues relating to the common bond will be considered at a later date.

The UK Financial Conduct Authority (FCA) has published a call for input seeking views on how its regulatory framework can better support small- and medium-sized enterprises (SMEs) in accessing finance. The FCA considers this part of its commitment to make sure businesses have better access to capital and its strategic priority of supporting growth. The work is intended to help the FCA design its regulatory approach, prioritise future work and complement the joint initiatives being undertaken by HM Treasury with the Bank of England on access to finance for "high potential growth firms" and by the Department for Business and Trade on demand and supply side barriers for SME finance through their call for input.

The FCA aims to understand how regulation affects SME access across debt, equity, hybrid and alternative finance, including any regulatory barriers, opportunities for improvement and sector specific challenges, particularly in high growth sectors. While focused on regulated products and services, the FCA will also consider impacts on services offered to SMEs which are outside the regulatory perimeter but offered by regulated firms.

The FCA seeks views from both SMEs on their experience of applying for finance, as well as from finance providers and distributors on any regulatory blockers or opportunities they have seen. The deadline for responses is 17 April. The FCA will engage with SME representatives and trade associations in March, hold a stakeholder roundtable in May, and later in 2026 publish a summary of insights from this engagement and research commissioned into the approach in comparable international jurisdictions, together with an update on next steps. Potential outcomes could include a review of the FCA's rules or clarifying specific requirements.

The UK Financial Conduct Authority (FCA), the UK Prudential Regulation Authority (PRA) and the Bank of England (BoE) have published final policy statements setting out a co‑ordinated framework for operational incident and third‑party reporting. This follows consultations published in 2024.

The regulators are collectively replacing sector‑specific incident reporting regimes with a single, unified operational incident reporting framework. Under this, firms will make one reporting submission through FCA Connect, regardless of the regulators involved. Payment service providers (PSPs) will also now report serious operational incidents only through the new consolidated regime. Changes to the reporting process for PSPs are reflected in amendments to the Payment Services and Electronic Money Approach Document. The rules will apply from 18 March 2027.

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The European Commission (EC) has published two draft delegated regulations for feedback, proposing amendments to the technical screening criteria under the EU Taxonomy Regulation, which provides a classification system to identify whether or not an economic activity should be considered as environmentally sustainable. The draft amendments follow the EC's call for evidence in November 2025 and the Omnibus I package, which introduced limited amendments to the technical screening criteria. The proposals are set out in the draft Delegated Regulation amending Delegated Regulation (EU) 2021/2139 and draft Delegated Regulation amending Delegated Regulation (EU) 2023/2486. The revisions aim to simplify and clarify the criteria to make the taxonomy easier to apply, reduce compliance burdens and encourage wider uptake. They also seek to align the framework with updated EU legislation and technological developments, covering most activities under the Climate and Environmental Delegated Acts, including energy, transport, manufacturing, construction, forestry and environmental protection, as well as the "do no significant harm" criteria. The deadline for feedback is 14 April. The EC plans to adopt the delegated regulations by the summer.

The European Commission (EC) has launched a call for evidence on revising the EU state aid rules for banks in difficulty. The initiative proposes to consolidate the six existing crisis-era communications into a single, clearer framework to take account of regulatory and economic developments, particularly arising from the recent reform of the EU's Crisis Management and Deposit Insurance (CMDI) framework. Political agreement on that reform was reached in June 2025, with the changes focusing on smaller and medium-sized banks, expected to apply from Q2 2028.

The EC notes that the current state aid rules, last updated in 2013, no longer fully reflect the post crisis regulatory environment, including the introduction of the Bank Recovery and Resolution Directive and the Single Resolution Mechanism. Neither does it reflect the CMDI's policy preference for addressing bank failures through harmonised EU resolution tools that prioritise shareholders', creditors' and industry-funded loss absorption over taxpayer funding, unless in exceptional circumstances. Misalignment between the two frameworks risks inconsistent outcomes, regulatory arbitrage and increased administrative burden, particularly where overlapping requirements pursue the same objectives. The revision therefore aims to improve coherence with CMDI, reduce duplication and ensure that public support for bank failures is, where justified, channelled primarily through resolution procedures, with national solutions involving state aid becoming the exception. 

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The UK Financial Conduct Authority (FCA) has published its regulatory priorities report for the consumer finance sector. These reports replace the FCA's previous portfolio letters and aim to provide a clearer and more consistent articulation of regulatory expectations. The FCA highlights that the credit sector is one of the UK's most varied markets, fuelling consumption and supporting economic growth. While consumer credit lending continued to grow throughout 2025 and interest rates have eased slightly, household budgets remain under pressure. This reinforces the need for responsible lending and early, effective support for consumers in financial difficulty.

The FCA sets out three priority areas for the next 12 months:

• Access to credit that meets consumers' needs: Firms are expected to lend responsibly, providing well-designed credit that offers fair value and meets consumers'. The FCA encourages firms to consider how to support consumers excluded from credit—whether through innovation, new product design, budgeting tools, eligibility checks for grants and benefits, or appropriate referrals.

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The UK Prudential Regulation Authority (PRA) has published consultation paper CP5/26 proposing reforms to modernise the existing prudential liquidity framework, taking into account advances in digital banking, payments and communications, and structural developments in the supply of central bank reserves. The proposals focus on targeted amendments to Pillar 2 and through changes to the Internal Liquidity Adequacy Assessment (ILAA) rules and related supervisory expectations within relevant supervisory statements.

Key proposals include:

• Requiring firms to assess the composition of their liquidity resources, identify barriers to monetising assets and conduct internal stress testing to evaluate their ability to respond to rapid and severe liquidity outflows within the first week of stress. The PRA also seeks to replace the concept of "marketable asset risk" with a broader assessment of monetisation risk.
• Removing the exemption for sovereign bonds and other Level 1 assets from annual testing of monetising non-liquid assets, to provide greater assurance that firms are operationally prepared to raise liquidity quickly in stress.

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The European Banking Authority (EBA) has launched two consultations on draft guidelines and regulatory technical standards (RTS) on the authorisation of initial margin models under the revised European Market Infrastructure Regulation (EMIR 3). Under EMIR 3, counterparties must obtain prior approval from their competent authority to use internal models used to calculate initial margin for non centrally cleared derivatives. The proposals aim to create an efficient and harmonised authorisation process across the EU for assessing these models.

The draft guidelines set out the minimum information and documentation required for a complete authorisation application, building on the Annex to the EBA’s December 2024 No Action Letter, which will cease to apply once the guidelines enter into force. The EBA expects to gradually roll out the application of the guidelines over a period of 18 months, staggering the application for different groups of counterparties based on the significance of their over-the-counter (OTC) trading activities.

The draft RTS specify the supervisory assessment techniques to be applied by competent authorities when authorising initial margin models. These will apply only to counterparties within groups whose aggregate monthly average notional amount of non-centrally cleared OTC derivatives exceeds EUR750 billion. Where an internal model relies on a pro‑forma model, prior validation by the EBA is required before authorisation by the competent authority. The deadline for comments on the consultations is 17 June, with a public hearing scheduled for 4 May.

The EU Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) has launched a data collection and testing exercise aimed at testing and calibrating its risk assessment models for credit and financial institutions. The exercise will support the selection, in 2027, of up to 40 entities for AMLA's direct supervision from 2028, and the development of a consistent, EU‑wide methodology for assessing money laundering and terrorist financing risks. Participation is limited to entities already notified by their national competent authorities. AMLA has published a reporting package, including an interpretative note, reporting template and recording and slides from a webinar explaining the requirements and next steps. Participating firms are required to submit data by 22 April.

HM Treasury has published its response and final plans for reform of the UK Financial Ombudsman Service (FOS) following its July 2025 consultation. The reforms are intended to restore the FOS to its original role as a simple, impartial dispute resolution body (to prevent it acting as a quasi-regulator), to improve regulatory coherence with the UK Financial Conduct Authority (FCA) and to provide greater certainty and predictability for consumers and firms who use the FOS. Following feedback, the government confirms it will:

• Legislate to align FOS's "fair and reasonable" test (used to determine cases) more closely with FCA rules, such that compliance with relevant FCA requirements will mean that firms have acted fairly and reasonably.
• Introduce a referral mechanism requiring the FOS to seek the FCA's view where it considers there may be ambiguity in what the FCA rules require or in relation to issues which may have wider implications across the financial services industry.

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The UK Financial Conduct Authority (FCA) and the UK Financial Ombudsman Service (FOS) have jointly published CP26/9 on modernising the redress system. It should be read alongside HM Treasury's (HMT) confirmation of its final plans for reform of the FOS, published on the same day.

CP26/9 sets out in Chapter 2 proposed measures possible within the existing framework, including initial implementation of the new registration stage, amendments to the dismissal grounds and proposed updates to the 'fair and reasonable' test. It also serves as a policy statement finalising elements of CP25/22 including the criteria for considering whether an issue is a mass redress event, the introduction of a lead complaints process, guidance clarifying when firms should report emerging issues to the FCA and amendments to COMP and DISP sourcebooks intended to improve the Financial Services Compensation Scheme's operational efficiency.

The amendments to COMP and minor amendments to DISP 1 came into force on 17 March. Other rule changes stemming from CP25/22 come into force on 1 June. The deadline for comments to the proposals in Chapter 2 of CP26/9 is 11 May.

The UK Financial Conduct Authority (FCA) has published findings from its review into how firms approach and apply the consumer understanding outcome under the consumer duty. The FCA sets out expectations for how firms, regardless of size, should design, test and govern customer communications to ensure retail customers can make informed decisions, with approaches applied proportionately to a firm's scale and resources.

The FCA identified several areas where firms need to improve, including weak evidence of communication testing, inaccessible or overly complex communications, insufficient consideration of diverse customer needs, weak monitoring, and unclear accountability for who is responsible for decisions and how they are made.

The FCA highlights effective approaches to strengthen communications and meet expectations including:

• Using insight to identify where consumers struggle—by analysing insights from multiple sources, such as call listening, complaints, chat transcripts, website analytics and surveys. This evidence should be reviewed regularly and meaningful improvements should be prioritised.
• Testing communications with real customers—by testing both before and after changes whether understanding improves. Firms should use proportionate tools such as surveys, comprehension checks and feedback from frontline interactions.

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The UK Financial Conduct Authority (FCA) has published its regulatory priorities report for the retail banking sector. These reports replace the FCA's previous portfolio letters and aim to provide a clearer and more consistent articulation of regulatory expectations.

In the report, the FCA notes that retail banking is undergoing significant change as customers use branches less and rely more on digital channels. Business models are also diversifying, with increased fintech activity and the continued development of open banking and new payment types.

The FCA sets out four priority areas for the next 12 months:

• Access to cash and essential banking services: As firms pursue digital first transformations, the FCA emphasises that firms must ensure these do not create foreseeable harm, particularly for customers with lower digital capability. Alternative services must be in place before any branch closures. The FCA will continue to monitor firms' approaches under its branch closures or conversions guidance and the consumer duty and will intervene where necessary.
• Good outcomes from products and services: Firms are expected to continue improving the data they use to monitor customer outcomes so they can identify where further action is needed. The FCA will take targeted action where it identifies poor outcomes, including poor value or issues affecting vulnerable customers.

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The Bank of England (BoE) has published a speech delivered by Andrew Bailey, Governor of the BoE and Chair of the Financial Stability Board (FSB) at the FSB Payments Summit on reforming cross‑border payments. Mr Bailey welcomes progress under the G20 cross‑border payments roadmap but stresses that implementation now needs to accelerate to meet the G20's 2027 targets. Looking ahead, he identifies cross‑border payments as a continuing strategic priority and sets out four areas of focus: (i) the development of jurisdictional and regional action plans to drive implementation of international standards, alongside a planned FSB review taking place in early 2027 of implementation of recommendations on data frameworks and bank and non‑bank regulation; (ii) further innovation and infrastructure upgrades, including deeper adoption of ISO 20022, extended RTGS operating hours, increased use of application programming interfaces and consideration of how digital payment innovations could support roadmap objectives; (iii) reducing regulatory compliance costs without diluting AML/CFT and other standards, including through greater cross‑jurisdictional consistency and the use of technology; and (iv) stronger commitment and coordinated action from the private sector, as well as some form of collective action, to move the dial on cross-border payments from the perspective of end users.

The European Securities and Markets Authority (ESMA) has published a report outlining its key takeaways from the 2025 call for evidence on the retail investor journey, particularly regulatory requirements under the revised EU Markets in Financial Instruments Directive (MiFID II) that impact retail investors when engaging with capital markets. The responses indicate that there are multiple factors, of regulatory and non-regulatory nature, which may create barriers for people to start investing.

Stakeholders highlight the need to address the following areas:

• Disclosures: Stakeholders support the need for appropriate disclosures but find them insufficiently effective due to volume, complexity, and fragmentation of information. They call for clearer and layered information, delivered in mobile-friendly formats.
• Suitability and appropriateness assessments: Stakeholders value the investor protection benefits of suitability and appropriateness requirements, but ask for simplification and proportionality, particularly for simple products and those distributed through digital channels. Many also consider the integration of sustainability preferences as being overly complex.

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The UK Financial Conduct Authority (FCA) has published its regulatory priorities report on mortgages. These reports replace the FCA's previous portfolio letters and aim to provide a clearer and more consistent articulation of regulatory expectations.

The FCA identifies three priority areas:

• Improving consumer outcomes under its mortgage rule review by simplifying rules. Most proposals are expected to be permissive, creating opportunities for firms to operate differently. The FCA expects firms to continue to set and manage their own independent risk appetites and take responsibility for the outcomes they deliver.
• Encouraging responsible lending and supporting mortgage borrowers in financial difficulty. Second charge lenders are advised to review the findings of the FCA's recent supervisory review of second charge mortgages to ensure that their affordability assessments are robust and expenditure assessments are realistic for their customers.

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The UK Financial Conduct Authority (FCA) has published findings from its good and poor practice review of second charge mortgages, assessing whether intermediaries and lenders are delivering good consumer outcomes in line with the consumer duty and relevant Mortgage Conduct of Business (MCOB) requirements. Second charge mortgages typically carry higher interest rates than first charge mortgages, and are commonly used to consolidate debt.

The FCA identified examples of good practice, including thorough collection and assessment of customer information, evidence of discussions around planned retirement age and innovative use of technology aimed at improving customer outcomes. However, it also highlighted several weaknesses that risk consumer harm including: (i) poor-quality advice on debt consolidation, sometimes without clear evidence that consolidation was appropriate or affordable; (ii) shortcomings in affordability assessments, which appeared to overlook key living expenses; (iii) weak information flows and oversight between intermediaries and lenders (where the FCA particularly noted that even when intermediaries are involved, lenders remain responsible for affordability assessments); (iv) inadequate record‑keeping; and (v) high intermediary fees in comparison to first charge mortgages that consumers found difficult to compare or assess for value.

The FCA emphasises that firms must ensure recommendations are genuinely suitable, affordability assessments are robust and evidence‑based, and fees represent fair value. It confirms that supervisory monitoring will continue; it will engage directly with firms requiring remedial action and that it may consider potential rulebook changes to further protect consumers consolidating debt.

The European Commission (EC) has published a report issued to the Council of the EU and the European Parliament, assessing the level of crisis preparedness of the EU financial sector in light of increasing geopolitical, cyber, climate and operational risks. The report states that the sector benefits from a robust, multi layered preparedness framework underpinned by sector specific legislation (including CRR/CRD, Solvency II, MiFID II, EMIR and CSDR), with particular emphasis on the Digital Operational Resilience Act alongside strong supervisory and crisis management arrangements at EU and national level.

It highlights the role of operational resilience, ICT and cyber risk management, business continuity planning, stress testing and supervisory coordination in ensuring the continuity of critical financial services, including payments and market infrastructure, during periods of crises. While noting the sector's resilience during recent shocks, the EC emphasises that preparedness must be subject to ongoing assessment. Further resilience is expected to be supported by initiatives such as the Savings and Investments Union and the proposed digital euro. In general, the EC notes that preparedness is not static; it is a dynamic, forward-looking state requiring a continuous cycle of planning, training, equipping, testing, evaluating and improving. It involves anticipating risks, building capabilities, coordinating across sectors and learning from past events to strengthen resilience, all of which the EC states apply equally to the financial sector.

The European Commission has published Implementing Regulation (EU) 2026/519 in the Official Journal of the European Union (OJ). The Regulation amends the implementing technical standards (ITS) in Implementing Regulation (EU) 2021/622 on reporting the minimum requirement for own funds and eligible liabilities (MREL). The Regulation aligns MREL reporting with recent amendments to the Bank Recovery and Resolution Directive (BRRD), including changes introduced by Directive (EU) 2024/1174, and seeks to improve supervisory oversight by requiring resolution authorities to report MREL decisions to the European Banking Authority on a bi annual basis rather than annually. Submissions are due from resolution authorities by 16 September and 18 March, covering MREL applicable as of 30 June and 31 December, respectively.

It also updates and replaces the MREL reporting templates and instructions to capture additional information on the exercise of resolution authorities' discretion, including in relation to liquidation entities and consolidated MREL decisions. The Implementing Regulation is based on final draft ITS developed by the European Banking Authority and published in September 2025. It will enter into force on 1 April, being 20 days after its publication in the OJ and will be directly applicable in all member states.

The European Commission has adopted a Delegated Regulation amending the regulatory technical standards (RTS) set out in Delegated Regulation (EU) 2023/206. The Amending Regulation is technical in nature and updates the RTS to ensure consistency with changes introduced to the Capital Requirements Regulation (EU) No 575/2013 (CRR) by Regulation (EU) 2024/1623 (CRR3). In particular, the amendments: (i) align the references to Article 124 CRR, which have become obsolete following the renumbering and revisions introduced by CRR3 concerning preferential risk weights for exposures secured by immovable property under the Standardised Approach; and (ii) reflect the updated terminology in Article 164 CRR, which now refers to the ability of an authority designated under Article 164(5) to set loss given default (LGD) input floor values, rather than higher minimum LGD values, for exposures located in one or more parts of its territory under the Internal Ratings Based Approach.

The Delegated Regulation is based on final draft RTS developed by the European Banking Authority and published in December 2025. It will enter into force 20 days after its publication in the Official Journal of the European Union and will be directly applicable in all member states.

The House of Commons Treasury Committee has published a letter (dated 27 February) from David Geale, the executive director for payments and digital finance at the UK Financial Conduct Authority (FCA) and the managing director of the UK Payment Systems Regulator (PSR), following the recent PSR evidence session on 4 February. In the letter, Mr Geale responds to the Committee's questions and outlines some of the regulators' priorities as work progresses on the planned consolidation of the PSR into the FCA. For further background, you may like to read our blog post titled "UK Payment Systems Regulator to be abolished - what's next?" which explores key considerations and potential impacts of the transition.

• Mr Geale states that the FCA and PSR support retaining the full scope and substance of the PSR's core remit within the future integrated structure, while noting there is room for improvement, particularly in streamlining processes, clarifying responsibilities between regulators and ensuring investigative powers remain effective. He states that the FCA and PSR have been working with HM Treasury (HMT) to consider how a new legislative framework can support effective integration of the two regimes that avoids unnecessary duplication, complexity or uncertainty.
• Targeted changes potentially include simplifying access arrangements and enhancing appeals and enforcement mechanisms for information-gathering notices. The regulators will continue to engage with HMT on how these issues may be addressed through the ongoing legislative process.

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The UK Home Office has published its updated fraud strategy for 2026–29, setting out the government's new approach to tackling fraud. It explains how the UK intends to disrupt the methods used by criminals, strengthen protections for the public and businesses, and improve how victims are supported. The strategy is split into three pillars:

• Disrupt: cutting off the tools, technologies and platforms used by criminals, including launching the Online Crime Centre (a new capability that will bring together law enforcement, intelligence agencies and industry expertise to identify and dismantle fraud networks) and strengthening international partnerships. Amongst the initiatives seeking to prevent the abuse of the UK's financial flows, the Home Office will launch a call for evidence focused on unauthorised fraud, the UK Financial Conduct Authority (FCA) will consider examples of practices for preventing APP fraud and money mule activity and will share its recommendations, and HM Treasury will repeal the existing Strong Customer Authentication technical standards, allowing the FCA to incorporate key standards into its rules and adopt a more agile, outcomes-focused approach. Regulating cryptoasset financial services activities is also seen as a crucial step. The government intends to develop metrics for measuring the prevalence of fraudulent activity in financial services, and their performance in removing and/or blocking such activity.

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The UK Home Office has launched a call for evidence on the current economic crime information sharing system, seeking views on how existing data sharing gateways used to detect, prevent, investigate and disrupt economic crime can be improved. The call for evidence focuses on identifying legal, operational, and cultural barriers to effective data sharing, as well as opportunities to strengthen the system through reform across the public and private sectors. The scope of this project covers information sharing in relation to any economic crime activity, including fraud, money laundering, corruption and asset recovery which is likely to be interchangeable with information shared on the underlying offences to money laundering. The deadline for comments is 18 May.

The UK Financial Conduct Authority (FCA) has published its quarterly consultation paper No. 51, inviting feedback on proposed amendments to its Handbook. Significantly, it included a proposal to increase the clearing threshold for commodity derivatives under the UK version of the European Market Infrastructure Regulation (UK EMIR) to EUR5 billion, to ensure the threshold remains appropriate in light of higher commodity prices.

Other changes include:

• Consequential changes to the client assets sourcebook to ensure its effective application to regulated cryptoasset activities.
• Rehousing some provisions in Article 17 of the UK version of Commission Delegated Regulation (EU) 2017/587 (RTS 1) into the framework now provided by MAR 11A and tidying up provisions relating to private rights of action.
• Making targeted changes to the collective investment scheme sourcebook to reflect amendments in the 2025 Statement of Recommended Practice for authorised funds.

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The European Parliament (EP) has published a report (dated 27 February), adopted by its Economic and Monetary Affairs Committee (ECON), on the European Commission's (EC) legislative proposal for a Directive amending the Markets in Financial Instruments Directive II (MiFID II) and the Critical Entities Resilience Directive. The proposed Directive forms part of the EC's broader Omnibus IV Simplification Package, which aims to simplify rules and reduce administrative burdens across the single market. The legislative proposal aims to simplify various administrative requirements for a new category of "small mid-cap enterprises" in line with the mitigating measures already available for small and medium-sized enterprises. ECON voted to adopt the report on 26 February.

The European Central Bank (ECB) has launched a call for expression of interest inviting licensed payment service providers (PSPs) to participate in a digital euro pilot, marking a further step in the ECB Governing Council's decision to move to the next stage of the digital euro project. The pilot, scheduled to run for 12 months, will take place in the second half of 2027. It will test the technical functionality, operational processes and user experience of a beta version of the digital euro, which will not have legal tender status, within a controlled environment. The pilot will involve staff from Eurosystem central banks and selected merchants that provide everyday services on the premises of the ECB and euro area national central banks (e.g. cafeterias and restaurants), as well as e-commerce merchants. Staff of participating central banks will have the opportunity to make digital euro payments from person to person (both online and offline) and from person to business (both at the physical point of sale and in e-commerce, including mobile commerce). The pilot is intended to refine the design of a potential digital euro, noting that any final decision on issuance will only be taken after the relevant EU legislation has been adopted. The deadline for interested PSPs to complete and submit an application is 17:00 CEST (16:00 GMT) on 14 May. 

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The Council of the EU has adopted at first reading its positions on the legislative package to reform the crisis management and deposit insurance (CMDI) framework for banks in the EU. The package includes targeted amendments to the Bank Recovery and Resolution Directive (BRRD), the Single Resolution Mechanism Regulation (SRM), and the Deposit Guarantee Schemes Directive (DGSD). The Council of the EU has published the following documents: (i) the position of the Council on the proposed Directive amending the BRRD regarding early intervention measures, conditions for resolution, and financing of resolution action, together with a statement of the Council's reasons; (ii) the position of the Council on a proposed Regulation amending the SRM Regulation regarding early intervention measures, conditions for resolution, and funding of resolution action, together with a statement of the Council's reasons; and (iii) the position of the Council on a Directive amending the DGSD as regards the scope of deposit protection, use of deposit guarantee schemes funds, cross-border cooperation and transparency, together with a statement of the Council's reasons. The Council and the European Parliament reached a political agreement on the legislative proposals in June 2025.

The UK Prudential Regulation Authority (PRA) has published policy statement PS6/26 on its approach to recognised exchanges and main indices in the context of the revocation and restatement of the UK Capital Requirements Regulation (UK CRR). The PRA previously consulted on the proposals in March 2025 (CP3/25). In the policy statement, the PRA confirms that it will proceed with introducing a new Recognised Exchanges Part in its Rulebook, specifying conditions under Article 4(1)(72)(c) of the UK CRR for the purposes of identifying recognised exchanges (REs) or assets traded on these exchanges. Assets traded on REs receive a preferential treatment within the bank prudential framework. Only minor edits to the original proposal have been made for clarity. Proposed consequential amendments to the definition of "higher risk equity exposure" in the PRA's near-final rules implementing Basel 3.1 will also be maintained.

The PRA also confirms that it will restate in the Glossary to the PRA Rulebook the list of main indices currently set out in implementing technical standards in UK Commission Implementing Regulation (EU) 2016/1646. In addition, the policy statement sets out the PRA's final policy to delete supervisory statement (SS20/13) on third country equivalence aspects of the credit risk provisions in the CRR and recognised exchanges. It also makes amendments to the Counterparty Credit Risk (CRR) Part of the PRA Rulebook and the Credit Risk Mitigation (CRR) Part of the PRA Rulebook which are consequential to the PRA's REs policy proposals and the proposal to restate the list of main indices into the PRA Rulebook.

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The European Banking Authority (EBA) has published its final report with final draft implementing technical standards (ITS) on the supervisory reporting of third-country branches (TCBs) under the Capital Requirements Directive VI (CRD VI). Under the new framework introduced by CRD VI, TCBs will be required to submit two sets of reports covering TCB level financial and regulatory information and head-undertaking level quantitative and qualitative data. A key feature of the draft ITS is a proportionate "core and supplement" model, which tailors reporting requirements to the systemic relevance of each TCB. This means smaller and less complex branches are required to submit a core set of key data while larger and more complex branches report on additional details.

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The Bank of England (BoE) has published a consultation paper proposing a new statement of policy (SoP) that will establish the BoE's approach to using its permissions and requirements powers to facilitate a discretionary mobilisation stage as part of the onboarding process of new central counterparties (CCPs). In particular, the draft SoP sets out how the BoE would impose voluntary de minimis limits on CCP activity and, where appropriate, grant time-limited permissions to modify or waive certain CCP rules (except for the fundamental rules in the CCP Rulebook). In addition, the consultation seeks views on how CCPs can apply for mobilisation and the information that prospective CCPs should provide, along with details on how CCPs would exit mobilisation.

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The UK Financial Conduct Authority (FCA) has announced it is proposing to make several changes to its planned motor finance compensation scheme, initially consulted on in October 2025 following the UK Supreme Court ruling on 1 August 2025. If the scheme goes ahead, the FCA indicates it is likely to publish final rules in late March, outside of market hours, and will confirm the date in advance. While final decisions have not yet been made, the FCA outlines several intended adjustments designed to streamline the consumer journey and make it smoother for firms to operate.

In response to consultation feedback and the scale and complexity of the scheme, the FCA is considering a three‑month implementation period, with up to five months for older agreements. Firms would have the option to begin processing claims under the scheme earlier should they wish to do so. The FCA also proposes several measures to streamline the process for consumers and firms:

• Removing the opt‑out requirements so consumers who complain before the scheme starts are no longer asked if they wish to opt-out, with lenders instead notifying consumers whether they are owed compensation, and the amount, within three months of the end of the implementation period.
• Allowing consumers to accept a redress offer immediately, without waiting for a final determination.
• Permitting firms to use a wide range of communication channels to write to consumers rather than relying solely on recorded delivery, with appropriate safeguards to prevent fraud.

The UK Financial Conduct Authority (FCA) has published its regulatory priorities report for the consumer investments sector, setting out key priorities for the year ahead. The report is for advisers, wealth managers, investment platforms and other-related consumer investment firms. These regulatory priorities reports replace the FCA's previous portfolio letters and aim to provide a clearer and more consistent articulation of regulatory expectations.

The FCA identifies four consumer investments priority areas:

• Building a stronger investment culture—The FCA will focus on firms giving consumers products and services that meet their needs at a fair price. The FCA will help firms prepare for the Consumer Composite Investments (CCI) rules and continue its Advice Guidance Boundary Review (AGBR). The FCA's targeted support policy comes into force in April, and it will publish new proposals for simplifying the advice rules soon.
• Strengthening trust—The FCA will work with firms to ensure strong governance, robust risk systems, and responsible innovation. It will also ensure firms act quickly when risks emerge, stay resilient, and pay redress where due. The FCA will support responsible innovation by helping firms test AI applications and other propositions through its sandbox.

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The draft Capital Requirements Regulation (Market Risk Transitional Provision) Regulations 2026 have been published, together with a draft explanatory memorandum. The draft Regulations relate to changes to the UK implementation of Basel 3.1. They insert a new Article 465A into the UK Capital Requirements Regulation (UK CRR), introducing a transitional provision requiring credit institutions and designated investment firms not to apply the UK Prudential Regulation Authority's (PRA) market risk rules on updated internal model requirements between 1 January 2027 and 31 December 2027. This means that the UK implementation of the Basel 3.1 internal model requirements for market risk will now be delayed until 1 January 2028. Firms will be allowed to continue using their existing internal models under the current approach until then. The PRA previously consulted on adjustments to the market risk framework in July 2025. The Regulations will come into force on 30 December.

The draft Credit Institutions and Investment Firms (Miscellaneous Definitions) (Amendment) Regulations 2026 have been laid before the UK Parliament and published with a draft explanatory memorandum. This follows HM Treasury's policy response on applying the Financial Services and Markets Act 2000 model of regulation to the UK Capital Requirements Regulation (UK CRR). The Regulations restate in legislation, with effect from 1 January 2027, the definitions previously contained in Articles 4, 4A, 4B and 5 of the UK CRR, which were revoked by virtue of section 1(1) of, and Schedule 1 to, the Financial Services and Markets Act 2023. Article 4 of the UK CRR will be revoked on 1 January 2027, together with other articles containing definitions relating to the UK banking prudential framework. The relevant legislation revoking these articles was published in February 2026.

The European Commission (EC) has issued a call for technical advice to the European Supervisory Authorities (comprising the European Banking Authority, European Insurance and Occupational Pensions Authority and European Securities and Markets Authority) (ESAs) on key performance indicators (KPIs) and other aspects of the Disclosures Delegated Act under Article 8 of Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment (Taxonomy Regulation). The EC is seeking technical input to complete the review and simplification of taxonomy reporting under the Disclosures Delegated Act. The review will focus on measures that were not included in Delegated Regulation (EU) 2026/73 (Omnibus Delegated Act) and will take place alongside ongoing work to amend the Sustainable Finance Disclosure Regulation.

The EC states that the advice should mainly focus on the following KPIs provided in the Disclosures Delegated Act: the operational expenditure (OpEx) KPI of non-financial firms, commissions and fees KPI and trading book KPI of credit institutions, and the underwriting KPI of insurance/reinsurance undertakings. In addition, the ESAs can advise on whether other targeted technical amendments to the Disclosures Delegated Act are necessary to simplify and enhance the usability of taxonomy reporting.

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The Financial Action Task Force (FATF) has issued a targeted report setting out the money laundering (ML), terrorist financing (TF) and proliferation financing (PF) risks and vulnerabilities related to stablecoins and unhosted wallets, particularly during peer-to-peer (P2P) transactions. In addition, the report identifies and shares a range of good practices that could be implemented by jurisdictions and the private sector to mitigate these risks and makes recommendations for implementation.

The report highlights that only a limited number of jurisdictions have implemented targeted regulatory frameworks for entities operating within the stablecoins ecosystem, explicitly taking into account the features that distinguish stablecoins from other virtual assets. While the FATF Standards do not require jurisdictions to adopt regulatory frameworks for stablecoin arrangements beyond those already applicable to virtual asset service providers, the FATF urges countries to recognise the specific ML/TF/PF risks associated with stablecoins and to implement proportionate and effective mitigating measures that reflect their distinct characteristics.

FATF recommends that jurisdictions should apply Recommendation 15 to all relevant entities involved in stablecoin arrangements, ensuring that they are subject to clear, enforceable ML/TF obligations. Jurisdictions should also define the roles and responsibilities of all participants throughout the stablecoin ecosystem and impose appropriate ML/TF obligations using a risk-based approach.

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The European Securities and Markets Authority (ESMA) has published two final reports with final draft regulatory technical standards (RTS) mandated under the review of the European Market Infrastructure Regulation (EMIR 3). Both reports were consulted on in June 2025.

The final draft RTS on margin transparency requirements, as required under Article 38 EMIR, specify the information to be provided by central counterparties (CCPs) on their margin simulation tools and by clearing service providers (CSPs) on their margin simulation requirements; and by both on their margin models. The aim is to improve transparency for clearing participants and enable them to better predict margin calls. The final draft RTS contain provisions on the information to be provided by a CCP to its clearing members, the CCP initial margin simulation tool and information to be provided by clearing members and clients providing clearing services.

The final draft RTS on clearing fees and associated costs, as required under Article 7c(4) EMIR, specify further details of the information to be disclosed by CSPs regarding clearing fees to be charged to CCPs for providing clearing services and any other fees charged, as well as any associated costs, with the aim of increasing costs transparency.

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The UK Financial Conduct Authority (FCA) has announced it has opened the authorisation gateway for targeted support, enabling firms to apply for permission to provide a new regulated form of support. From 6 April, authorised banks, pension providers and other financial firms that are authorised for targeted support will be able to offer tailored recommendations to groups of consumers with common characteristics, particularly in relation to pensions and investments. The FCA launched its pre-application support service (PASS) for targeted support last year and has engaged with a range of firms so that they understand what is expected for a good quality and complete application for the targeted support regulated activity. The FCA encourages firms with questions about the authorisations process to engage with it through the PASS. Firms can submit applications for targeted support permissions via Connect, the FCA's online system.

Separately, on 27 February, the FCA updated its webpage on rules for targeted support to confirm the near-final rules, published in December 2025, as final. The FCA confirms that it has made only minor changes to the rules since they were published as near-final to largely cross-refer to the legislation that the government has brought forward to create the new targeted support activity.

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The European Commission (EC) has launched a consultation seeking feedback on obstacles faced by private equity investors when exiting investments in EU private companies and on potential ways to address these obstacles. The consultation forms part of the EC's work under the Savings and Investments Union and aims to improve access to finance for EU start‑ups and scale‑ups. The EC notes that persistent challenges, such as not being able to wait for an initial public offering (IPO) to realise capital gains or the lack of a credible valuation of private assets may hinder a transaction. These difficulties reduce market activity, limiting the availability of growth capital and possibly prompting companies to move outside the EU in search of funding. Therefore, the EC is seeking views on the: (i) possible barriers or issues for exiting private equity investments in the EU; (ii) the merits and possible design features of a platform for secondary trading of private company shares; and (iii) the potential of an extended use of such a platform for raising new equity capital. The deadline for responses is 27 April, and the feedback will inform the EC's decision on whether further regulatory or policy action is warranted in this area.

The European Banking Authority (EBA) has published its final guidelines on instruments available for third-country branches (TCBs) for unrestricted and immediate use to cover risks or losses under Article 48e(2)(c) of the Capital Requirements Directive (2013/36/EU) (CRD IV). Under Article 48e of the CRD IV Directive, as amended by Directive (EU) 2024/1619 (CRD VI), an authorised TCB must maintain a minimum capital endowment at all times. Article 48e(2)(c) specifies that it may use for this purpose instruments that are available to the TCB for unrestricted and immediate use to cover risks or losses as soon as those occur. The EBA was mandated to issue guidelines on the instruments that can be used for this purpose.

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The UK Financial Conduct Authority (FCA) has published a new webpage with information for cryptoasset firms that are currently using the services of an FCA-authorised firm to approve their cryptoasset financial promotions. Cryptoasset firms that are not authorised under the Financial Services and Markets Act 2000 (FSMA) or registered with the FCA under The Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) (including overseas firms) may use FCA-authorised firms to approve their cryptoasset financial promotions (referred to as an s.21 approver) for communication to UK consumers. The webpage sets out information on the use of s.21 approvers ahead of the UK's new crypto regime coming into force on 25 October 2027:

• Cryptoasset firms that apply for authorisation during the application period—Cryptoasset firms using an s.21 approver and applying for authorisation (or variation) during the application period, which runs from 30 September to 28 February 2027, may continue to use their existing s.21 approver until their application is determined (including during any period in the saving provision).
• Cryptoasset firms that do not apply for authorisation during the application period—Cryptoasset firms using an s.21 approver that do not apply during the application period may continue to use their existing s.21 approver until the new cryptoasset regime comes into force. From this date, if the firm's application has not been determined, it will enter the transitional provision and only be allowed to communicate promotions to pre-existing contracts. These promotions will not require an s.21 approver.

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The European Commission has published two Delegated Regulations in the Official Journal of the European Union (OJ): (i) Delegated Regulation (EU 2026/465), supplementing the Alternative Investment Fund Managers Directive (Directive 2011/61/EU) (AIFMD); and (ii) Delegated Regulation (EU 2026/466) supplementing the Undertakings for Collective Investment in Transferable Securities Directive (Directive 2009/65/EC) (UCITS Directive). These Delegated Regulations lay down regulatory technical standards (RTS) specifying the characteristics of liquidity management tools (LMTs), following the recent amendments made to the AIFMD and the UCITS Directive by Directive (EU) 2024/927 (AIFMD II).

The RTS specify the characteristics of the LMTs set out in the Annexes to the Directives, including suspension of subscriptions, repurchases and redemptions, redemption gates, extension of notice periods, redemption fees, swing pricing, dual pricing, anti-dilution levy, redemption in kind and side pockets. Under the amended Directives, managers must select at least two LMTs from the harmonised list for potential use, taking into account the fund's investment strategy, liquidity profile and redemption policy. The Delegated Regulations were first adopted on 17 November 2025, which we covered separately here. They both enter into force on 19 March, being the 20th day following publication in the Official Journal of the European Union, and will apply from 16 April.

The Delegated Regulation, amending Delegated Regulation (EU) 2017/567 as regards equity transparency requirements under the Markets in Financial Instruments Regulation (MiFIR), has been published in the Official Journal of the European Union (OJ). The amendments follow the EBA's final report in December 2024 and reflect changes introduced by the MiFIR review and the amendments to the second Markets in Financial Instruments Directive (MiFID II).

The Delegated Regulation introduces targeted amendments across several areas, including: (i) the determination of what constitutes a liquid market for equity instruments; (ii) the obligation to provide market data on a "reasonable commercial basis"; (iii) the size specific to the financial instrument for the purposes of obligations for systematic internalisers; and (iv) the definition of, and disclosure for post trade risk reduction (PTRR) services. The amending Delegated Regulation was first adopted on 24 November 2025, which we covered here. It entered into force on 2 March, being the third day following publication in the OJ. Article 1, point (4) of the amending Delegated Regulation, which deletes Chapter II of Delegated Regulation (EU) 2017/567 relating to data provision obligations for trading venues and systematic internalisers, will be deleted with effect from 23 August.

The UK Financial Conduct Authority (FCA) has published a new webpage setting out examples of good and poor practice for using labels under the sustainability disclosure requirements (SDR) regime. These examples are based on the FCA's findings on what it has seen through the fund authorisations process for updating pre-contractual disclosures. The FCA reports that applications to update pre-contractual disclosures have improved as firms have become more familiar with the regime and as the number of labels on the market has increased, with a growing range of asset classes and investment strategies. It nonetheless highlights that there are continuing weaknesses, particularly where it remains unclear whether or how labelling criteria are met or whether disclosures accurately reflect what the fund invests in. The FCA reiterates that effective disclosures should be clear, concise, easy to read and understand, fund‑specific and accurately reflect what the product invests in.

Under the anti‑greenwashing rule, firms must also make sure that any references to sustainability characteristics in disclosures are consistent with the sustainability characteristics of the product. The FCA emphasises that the examples provided are illustrative only, do not replace the rules in the Environmental, Social and Governance Sourcebook and should not be used as templates for disclosure.

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The UK Financial Conduct Authority (FCA) has published Handbook Notice 138, outlining amendments to the FCA Handbook resulting from the following statutory instruments:

• Deferred Payment Credit Instrument 2026, which comes into force on 1 April, 15 July and 31 December. The instrument introduces the FCA's new regulatory regime for deferred payment credit (previously known as buy-now, pay-later (BNPL) credit).
• UK Listing Rules (Notification of Purchases) Instrument 2026, which came into force on 27 February. This instrument amends the requirements in UKLR 9.6.6R and UKLR 9.7.3R, which relate to the notification of purchases of own securities under the UK Listing Rules.
• Advice Guidance Boundary Review (Targeted Support) Instrument 2026, which introduces the framework for the new form of targeted support for consumers' pensions and retail investment decisions. The instrument came into force partially on 2 March, and the remaining provisions will come into force on 6 April, 31 December and 6 April 2027.

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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.