The following posts provide a snapshot of selected UK, EU and global financial regulatory developments of interest to banks, investment firms, broker-dealers, market infrastructures, asset managers and corporates.
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EC adopts Delegated Regulation to delay the application of Basel 3 market risk prudential requirements by an additional year
12 June 2025
The European Commission (EC) has adopted a Delegated Regulation amending Regulation 575/2013 (CRR) regarding the date of the application of market risk prudential requirements. The new market risk requirements were introduced by CRR amendments made by Regulation (EU) 2024/1623, which marked the completion of the second phase of the implementation of the Fundamental Review of the Trading Book (FRTB), part of the Basel 3 international standards. The application date has already been postponed a year to 1 January 2026. However, a further postponement—which would delay application until 1 January 2027—is being proposed to reflect concerns around delays in Basel 3 implementation by other jurisdictions and the potential impact on EU banks. The Delegated Regulation will be scrutinised by the European Parliament and Council for three months (and this period may be extended by a further three months).Topic : Prudential Regulation -
ESMA publishes principles for supervisory oversight of third-party risk
12 June 2025
The European Securities and Markets Authority (ESMA) has published a comprehensive set of principles, accompanied by a press release, aimed at strengthening the supervision of third-party risks across the EU financial sector. The principles are intended to guide national competent authorities (NCAs) in identifying, assessing and overseeing third-party risks for EU entities in the securities markets, in accordance with the relevant legal framework and the principle of proportionality. Aligned with international standards (IOSCO, FSB and BCBS), the principles apply to all third-party arrangements, whether the third party is intra-group or external, located within the EU or in a third country, and irrespective of the technology used. The fourteen principles are grouped into four thematic areas to support NCAs in exercising effective oversight and ensuring that entities appropriately manage third-party risks.
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EC adopts technical standards for the development of consolidated tapes
12 June 2025
The European Commission (EC) has adopted a suite of technical standards for the development of consolidated tapes. The creation of consolidated tapes and the removal of obstacles to the development of consolidated tapes, were a key action point following the findings of the European MiFID/MIFIR review. The changes relate to technical standards for data reporting service providers, i.e. approved publication arrangements (APAs), approved reporting mechanisms (ARMs) and consolidated tape providers (CTPs). The technical standards adopted consist of implementing technical standards and three sets of regulatory technical standards, supplementing Regulation (EU) No 600/2014 (MIFIR).
Read more.Topic : MiFID II -
ESMA final reports on the Prospectus Regulation and civil prospectus liability
12 June 2025
The European Securities and Markets Authority (ESMA) has published two final reports providing technical advice to the European Commission (EC). The final report on prospectus regulation forms part of ESMA's technical advice under the EU Listing Act, which seeks to make EU capital markets more accessible, especially for small and medium-sized enterprises (SMEs).
The report covers:- Draft technical advice on the standardised format and sequence of the prospectus, the base prospectus and the final terms.
Read more.Topic : Securities -
BoE publishes feedback statement on transitioning to a repo-led operating framework
11 June 2025
The Bank of England (BoE) has published a feedback statement in response to its December 2024 discussion paper on transitioning to a repo-led operating framework. The discussion paper proposed changes to the Sterling Monetary Framework (SMF), aiming to shift towards a repo-led, demand-driven system for supplying central bank reserves, including proposals to adjust the design of the indexed long-term repo (ILTR) facility.
While there was broad support for the overall design of the framework, concerns were raised in the following areas:- Predictability of ILTR pricing and allocation. The BoE has maintained that the ILTR's current high-level design, as a variable price, variable size auction, strikes an effective balance between flexibility and responsiveness to changing market conditions and predictability for SMF participants.
Read more.Topic : Prudential Regulation -
FCA findings on retirement income advice
11 June 2025
The UK Financial Conduct Authority (FCA) has published an article with findings from a thematic review assessing firms who provide retirement income advice (RIA). The review assessed how effectively firms are providing RIA and the quality of outcomes for consumers entering decumulation, the phase when individuals begin drawing income from their pension savings.
The FCA has identified three key areas as crucial for achieving good client outcomes:- Information collection and record keeping by firms. Firms are expected to gather comprehensive and relevant client information to assess suitability before making recommendations and maintain clear, up-to-date records. While most firms showed a good understanding of clients' objectives and circumstances, several failed to adequately document or collect key information in client files.
Read more.Topic : Consumer / Retail -
FCA launches IAAT
11 June 2025
The UK Financial Conduct Authority (FCA) has launched the investment advice assessment tool (IAAT) to help personal investment firms assess the suitability of their investment advice and disclosures to consumers (excluding advice on retirement income or defined benefit transfer advice). The IAAT offers a structured methodology for reviewing past advice provided since 3 January 2018, including in response to business complaints or as part of a past business review. The tool is intended not only for the use of investment firms but also professional indemnity insurance providers, compliance or legal consultants and trustees of defined contribution pension schemes. Use of the IAAT is subject to the FCA's licensing agreement, which must be reviewed before access or use. To support firms, the FCA has also published an instruction guide explaining how to use the IAAT and interpret the results of file reviews conducted by the FCA.Topic : Consumer / Retail -
EC adopts amendments to Delegated Regulation No 876/2013 to align with EMIR 3 reforms
11 June 2025
The European Commission has adopted a Delegated Regulation amending Delegated Regulation (EU) No 876/2013, which supplements EMIR (Regulation (EU) No 648/2012) in relation to the functioning and management of colleges for central counterparties (CCPs). The amendments are limited in scope and aim to align the existing regulatory framework with recent changes made by Regulation (EU) 2024/2987—part of the broader EMIR 3 reform package. The amendments have specifically modified: (i) article 2, to reflect the changes introduced in article 18(1) of EMIR, specifying the deadline for establishing a college and clarifying the role of the co-chairs in the context of the establishment of such college; (ii) articles 3 and 4, to align with article 18 of EMIR, clarifying the roles of the co-chairs and the governance structure of colleges to ensure their effective and consistent functioning for all CCPs across the Union; and (iii) article 5, to specify the additional information that a CCP's competent authority must provide to college members, and to require the use of the central database established under article 17c of EMIR for information exchange. This Regulation will enter into force on the twentieth day following its publication in the Official Journal of the European Union. -
Industry associations urge ESMA to issue a no-action letter on EMIR 3 AAR implementation
11 June 2025
Four industry associations—EFAMA, EACP, ISDA, and FIA—have published a letter addressed to the European Securities and Markets Authority (ESMA) and the European Commission (EC), raising concerns about the implementation of the active account requirement (AAR) under EMIR 3, set to take effect on 24 June. The associations emphasised the importance for the final level 2 regulatory technical standards (RTS) on the conditions of the AAR to be published in the Official Journal of the European Union before the AAR becomes applicable. Without the RTS, EU financial market participants would not be able to understand the requirements that need to be complied with on day 1.
Read more.Topic : Derivatives -
ECB Decision (EU) 2025/1148 on access by Non-Bank Payment Service Providers to TARGET published in OJ
10 June 2025
The Decision (EU) 2025/1148 of the European Central Bank (ECB) adopted on 2 June, has been published in the Official Journal of the European Union. This decision amends Decision (EU) 2025/222 concerning access by non-bank payment service providers (NB-PSPs), namely payment institutions and electronic money institutions, to central bank operated payment systems, including TARGET. Due to delays by some member states in transposing the relevant EU directives into national legislation, the ECB has decided to defer the date from which NB-PSPs can request access to TARGET from 16 June to 6 October. Additionally, the transition period for NB-PSPs to migrate to from their current status (e.g., as addressable BIC holders or reachable parties) to full TARGET participants has been extended from 31 December to 31 March 2026. To ensure a smooth transition, the decision enters into force immediately following its publication in the Official Journal of the European Union. -
EBA opinion on PSD2 and MiCAR
10 June 2025
The European Banking Authority (EBA) has issued an opinion (referred to as the No Action letter) in response to a request from the European Commission (EC) in December 2024, on the interplay between Payment Services Directive (PSD2/3) and Markets in Crypto-Assets Regulation (MiCAR) in relation to electronic money tokens (EMTs). It seeks to clarify how national competent authorities (NCAs) should approach the authorisation and supervision of crypto-asset service providers (CASPs) that engage in EMT-related activities during the transitional period before PSD3 and the Payment Services Regulation (PSR) come into effect. The EBA advises the EC, European Council and European Parliament to avoid long-term dual authorisation requirements and advises NCAs to require PSD2 authorisation only after a transition period ending on 2 March 2026, and only for a defined subset of CASPs—specifically those providing services such as the custody and administration of EMTs or facilitating EMT transfers on behalf of clients. NCAs are encouraged to adopt streamlined authorisation procedures that leverage information already submitted during the MiCAR process. Post-transition, NCAs must ensure entities who are not licensed as a payment service provider (PSP) or have not entered partnership with a PSP, are prevented from providing EMT related services that qualify as a payment service.
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EC call for evidence on savings and investment accounts recommendation
10 June 2025
The European Commission (EC) has issued a call for evidence to gather input on its initiative to develop a European blueprint for savings and investment accounts as part of its recommendation for the savings and investments union (SIU). The initiative aims to encourage retail investors to participate more actively in EU capital markets, aiming to boost long-term returns on their savings while simultaneously enhancing market liquidity and increasing the flow of capital to European businesses. The SIU Communication has emphasised the importance of savings and investment accounts to be based on best practices, with effective models described as being user-friendly, digitally accessible, providing access to a wide range of investment products, offering favourable tax treatment and/or simplified tax compliance, and allowing low or no-cost provider switching. The EC is specifically seeking feedback on these characteristics, as well as their benefits and limitations, to assess their effectiveness in making savings and investment accounts an easy and convenient entry point to capital markets for retail investors pursuing investment opportunities for their savings. The deadline for comments is 8 July, with the recommendation expected to be published in Q3 2025.Topic : Consumer / Retail -
Further suite of technical standards supplementing MiCAR published in the OJ
10 June 2025
Three Commission Delegated Regulations supplementing Regulation (EU) 2023/1114 (the EU Markets in Crypto Assets Regulation) (MiCAR) have been published in the Official Journal of the European Union, namely:- Commission Delegated Regulation - 2025/1141 supplementing MiCAR with regards to regulatory technical standards specifying the requirements for policies and procedures on conflicts of interest for issuers of asset-referenced tokens.
- Commission Delegated Regulation - 2025/1140 supplementing MiCAR with regards to regulatory technical standards specifying records to be kept of all crypto-asset services, activities, orders and transactions undertaken.
Read more.Topic : FinTech -
The UK Private Intermittent Securities and Capital Exchange System (Exemption from Stamp Duties) Regulations 2025
10 June 2025
The Private Intermittent Securities and Capital Exchange System (Exemption from Stamp Duties) Regulations 2025 (SI 2025/666) have been published, alongside an explanatory memorandum. The regulations exempt the transfer of a share traded on a Private Intermittent Securities and Capital Exchange System (PISCES), under the PISCES sandbox arrangements, from all stamp duties. PISCES is an innovative type of market allowing private company shares to be traded intermittently, established under the financial market infrastructure sandbox legal framework prescribed by the Financial Markets and Services Act 2023 (FSMA 2023). The UK chancellor originally announced in the Autumn Budget 2024 that this exemption would be made. The intention of the exemption is to boost the attractiveness of PISCES for the duration of the sandbox, which is set at five years but may be extended by HM Treasury. The regulations will come into force on 3 July. -
FCA publishes final rules on UK PISCES sandbox arrangements
10 June 2025
The UK Financial Conduct Authority (FCA) has published final policy statement PS25/6, accompanied by a press release, setting out the final rules for the Private Intermittent Securities and Capital Exchange System (PISCES) sandbox arrangements, following its December 2024 consultation and April interim statement. PISCES is a new platform designed for intermittent trading of private company shares. The FCA aims for the rules to provide a consistent and coherent framework sandbox alongside the PISCES sandbox regulations. The FCA has confirmed it is not making material changes to the proposals but has incorporated various technical amendments consistent with its interim statement to the final rules.
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EC adopts Delegated Regulation updating AML/CFT high-risk third country List
10 June 2025
The European Commission (EC) has adopted a Delegated Regulation amending Delegated Regulation (EU) 2016/1675 to update the list of high-risk third countries with strategic deficiencies in their anti-money laundering and countering the financing of terrorism (AML/CFT) regimes, pursuant to article 9 of the Anti-Money Laundering and Terrorist Financing Directive VI. The amendment has added Algeria, Angola, Côte d'Ivoire, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal and Venezuela to the list. These jurisdictions have made high-level political commitments to address these deficiencies and have developed action plans in cooperation with the Financial Action Task Force (FATF). The EC urges the timely and effective completion of these respective action plans. Barbados, Gibraltar, Jamaica, Panama, the Philippines, Senegal, Uganda and the United Arab Emirates have been removed from the list, having demonstrated significant improvements in their AML/CFT frameworks following the implementation of their respective FATF-agreed action plans. The Regulation will enter into force on the twentieth day following that of its publication in the Official Journal of the European Union, which is on 30 June.Topic : Financial Crime and Sanctions -
UK permanently exempts UK and EEA pension schemes from the derivatives clearing obligation
10 June 2025
The Pension Fund Clearing Obligation Exemption (Amendment) Regulations 2025 (SI 2025/670) have been published, alongside an explanatory memorandum. The regulations amend the UK version of Regulation 2012/648 (UK EMIR) and remove the current expiry date of the exemption for UK and EEA pension schemes from the UK EMIR clearing obligation. This follows the publication of the draft version of the regulations in March and mirrors the EU's introduction of a permanent exemption for non-EU pension schemes–further details can be found in our article EMIR 3 – Impact on cleared OTC derivatives markets. The intention of the change, as explained in the explanatory memorandum, is to ensure pension funds remain able to invest in productive assets, as removing the exemption would require them to increase cash holdings and potentially increase pressure on the liquidity management of pension funds, particularly in stressed market conditions. The regulations came into force on 11 June.Topic : Derivatives -
The Financial Services and Markets Act 2023 (Capital Buffers and Macro-Prudential Measures) (Consequential Amendments) Regulations 2025
9 June 2025
The draft UK Financial Services and Markets Act 2023 (Capital Buffers and Macro-prudential Measures) (Consequential Amendments) Regulations 2025 were laid before the UK parliament and have been published, alongside an explanatory memorandum. This draft instrument has made consequential amendments to legislation following the revocation of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014 (S.I. 2014/894), which have been replaced by the new Capital Buffers and Macro-prudential Measures Regulations 2025 (S.I. 2025/653), coming into force on 31 July. The amendments are intended to ensure consistency across the legislative framework and to support the continued effective operation of the capital buffer regime. Specifically, the amendments made by this instrument includes replacing citations to the 2014 Capital Buffers Regulations with references to the new Capital Buffers and Macro-prudential Measures Regulations. It also removes references to provisions in the 2014 Regulations that are not being carried forward, such as those relating to the Global Systemically Important Institutions buffer, which are no longer applicable under the revised framework.Topic : Prudential Regulation -
FCA announces launch of Supercharged Sandbox
9 June 2025
The UK Financial Conduct Authority (FCA) has announced the launch of its Supercharged Sandbox, developed in collaboration with NVIDIA, as part of its AI Lab and in line with the FCA's strategy to foster economic growth. This upgraded sandbox builds on the FCA's existing digital sandbox structure, offering firms access to NVIDIA's accelerated computing and AI enterprise software. This sandbox complements the FCA's AI Live Testing service, which alternately assists those that are further along in development and ready for implementation. By enhancing technical resources, data access and regulatory support, the sandbox aims to foster responsible AI innovation without introducing new regulations, relying instead on existing frameworks. Applications for the Supercharged Sandbox have opened and will close on 11 August. The programme will run for three months, from 30 September to 9 January 2026. Full details, including eligibility criteria and application guidance, are included in the official participation pack.Topic : Artificial Intelligence -
FCA Quarterly Consultation No 48
6 June 2025
The UK Financial Conduct Authority (FCA) has published quarterly consultation paper No 48, accompanied by a press release, inviting feedback on proposed amendments to its Handbook. Key proposals include:- Amending guidance in SUP 6.4 to reflect legislative changes introduced in section 415AA of the Financial Services and Markets Act 2000 (FSMA); the deadline for comments is 14 July.
- Streamlining data reporting by decommissioning certain requirements, including changes to REP009 (consumer buy-to-let mortgage aggregated data) reporting frequency and removing nil return requirements for REP008 (notification of disciplinary actions relating to conduct rules staff other than SMF managers); the deadline for comments is 30 June.
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ECB consults on extension to T2 operating hours
6 June 2025
The European Central Bank (ECB) has published a consultation paper (CP) exploring the extension of operating hours for its real-time gross settlement (RTGS) system, T2. This involves both its daily operational hours and its operational days, while also considering the potential interaction with the operating hours of TARGET2-Securities (T2S), even though T2S is generally outside the scope of the consultation. T2's operating hours were extended previously in 2023, but the ECB is consulting on a further extension given the growing liquidity management challenges for banks due to increasing use of instant payments and the potential introduction of a digital euro.
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FCA operation against unauthorised finfluencers
6 June 2025
The UK Financial Conduct Authority (FCA) has published a press release on its leading international crackdown on illegal financial influencers (finfluencers) in collaboration with regulators from Australia, Canada, Hong Kong, Italy and the UAE. This operation, which commenced on 2 June and was led by the FCA, resulted in three arrests, criminal proceedings against three individuals, the issuance of fifty warning alerts and seven cease and desist letters in the UK. The warning alerts will result in over 650 takedown requests for unauthorised financial promotions on social media platforms and websites. The FCA warns finfluencers that they must act responsibly and only promote financial products if authorised, otherwise they will face serious consequences for non-compliance.Topic : FinTech -
BoE and PRA issue joint consultation on amendments to UK EMIR reporting standards
6 June 2025
The Bank of England and the UK Financial Conduct Authority have published a joint consultation paper proposing amendments to the UK EMIR trade repository reporting requirements, using their powers under article 9 of UK EMIR and section 138P of the Financial Services and Markets Act 2000 (FSMA). The proposed changes follow the full implementation of the UK EMIR Refit in March and aim to make the reporting regime run more smoothly.
Read more.Topic : Derivatives -
The Capital Buffers and Macro-prudential Measures Regulations 2025
5 June 2025
The Capital Buffers and Macro-prudential Measures Regulations 2025 (SI 2025/653) have been laid before the UK parliament and published, together with an explanatory memorandum. The regulations restate relevant provisions of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014, which are set to be revoked by the Financial Services and Markets Act 2023 with effect from 31st July. This forms part of the UK's process of replacing a large body of detailed and technical financial services regulation which remains in legislation as assimilated law, following the UK's withdrawal from the European Union.
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Law Commission consults on reforming private international law for digital assets
5 June 2025
The UK Law Commission has published a consultation on reforms to private international law necessitated by emerging technologies such as decentralised ledger technology (DLT). The Law Commissions state that their project has a particular focus on crypto-tokens, electronic bills of lading and electronic bills of exchange because these assets are prevalent in market practice while also posing novel theoretical challenges to the methods by which issues of private international law have traditionally been resolved. The consultation focuses primarily on wholly decentralised applications of DLT. Among other things, the Law Commission proposes:
- To create a new free-standing information order to help claimants who have lost crypto-tokens through fraud or hacking, obtain information about the perpetrators or the whereabouts of their tokens without having to go through the existing gateways.
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FCA statement on key considerations for any motor finance redress scheme
5 June 2025
The UK Financial Conduct Authority (FCA) has published a statement outlining key considerations for a potential consumer redress scheme, as part of its review into motor finance commission arrangements, following the pending Supreme Court judgement, expected in July. If upheld, the ruling could expose firms to significant liability for failing to disclose commissions.
Read more.Topic : Consumer / Retail -
FOS consults on interest rates for compensation awards
4 June 2025
The Financial Ombudsman Service (FOS) has published a consultation paper seeking views on the interest rates applied to compensation awards. This follows concerns raised in response to a 2024 joint call for input with the UK Financial Conduct Authority, that the current rate of 8% discretionary interest on top of compensation awards is excessively high.
The consultation paper invites feedback on whether the current 8% interest rate should be: (i) maintained at its current level of 8%; (ii) reduced, with respondents to suggest alternative rates and the rationale behind them; (iii) replaced with a tracker rate linked to the Bank of England (BoE) base rate plus 1%, where the base rate is calculated as an average rate over the period that the money was due until the date redress payment is made (FOS's recommended option); or (iv) replaced with a tracker rate linked to the BoE base rate plus 1%, but where the base rate is calculated as the rate at the point of determination of the complaint. FOS also sets out options for implementation, with its preferred approach to apply the new rate to complaints referred from the date the change takes effect.
In addition, FOS is seeking views on the types of exceptional circumstances where it may be appropriate for an ombudsman to ask a firm not to apply interest e.g., by choosing not to award interest for a certain period to reflect a firm's unreasonable conduct that caused delays during the investigation. In such cases, the ombudsman will be required to clearly explain the reasons for departing from the standard rate. The consultation focuses on pre-and-post determination interests, it does not address any other awards an ombudsman may recommend when making a decision. The deadline for comments on the consultation paper is 2 July. FOS aims to publish a policy statement in September, with the intention of implementing any changes as soon as possible thereafter. -
FCA policy statement on finalised ENFG for the publication of enforcement measures
3 June 2025
The UK Financial Conduct Authority (FCA) has published policy statement PS25/5 accompanied by a press release, outlining final revisions to its Enforcement Guide (now abbreviated as ENFG). The revisions follow a two-part consultation process published in February and November 2024.
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FCA and ICO collaborate to support responsible AI Innovation
2 June 2025
The UK Financial Conduct Authority (FCA) and the Information Commissioner's Office (ICO) have published a discussion of how they are collaborating to support responsible innovation, providing regulatory clarity to give firms the confidence to ensure compliance with data protection and financial regulation.
A survey revealed that 33% of firms view data protection and 20% view FCA regulations as a constraint on AI adoption. A roundtable was held on 9 May to explore and understand these challenges. The FCA and ICO report that what came through was very little about specific regulations standing in the way of innovation. Rather, firms understand the broad rules, but many – especially smaller ones – want clearer examples of 'what good looks like' in practice and more opportunities for engagement to build confidence in trying new technologies.
Actions proposed in response include: (i) development of a statutory code of practice for the development or deployment of AI and automated decision making. They will also help firms to develop, test, and evaluate AI as part of the FCA's AI Lab; (ii) a roundtable with smaller firms later this year to better understand the challenges they face in adopting AI; (iii) working together with other regulators in the Digital Regulation Cooperation Forum (DRCF) to explain expectations around who holds responsibility when AI tools are developed by third parties; and (iv) increasing visibility of existing tools and services. The new DRCF workplan commits regulators to coordinate their approach with exploring how their respective regulatory frameworks apply to AI, including agentic AI, and to identify and address any areas of conflict.Topic : Artificial Intelligence -
EBA speech on efficiency and effectiveness of EU Financial Regulation
2 June 2025
The European Banking Authority (EBA) has published a keynote speech delivered by its Chairperson, José Manuel Campa, at a high-level meeting for European supervisors in Ljubljana, Slovenia, on the importance of an efficient and effective financial services regulatory framework to support sustainable growth while enhancing EU competitiveness. While acknowledging the effectiveness of the current framework, particularly in ensuring financial stability, Mr Campa recognises concerns around its complexity and proportionality, understanding the need for greater simplification efforts.
Read more.Topic : Other Developments -
FCA supports move towards faster settlement cycle for fund trades
30 May 2025
The UK Financial Conduct Authority (FCA) has published a press release welcoming a joint statement from asset management trade associations supporting the transition to faster settlement of trades in funds. Effective from 11 October 2027, the settlement period for transactions in listed stocks and bonds in the UK, Switzerland and the EU will change to T+1, meaning trades will settle within one business day. The FCA acknowledges that the operational practicalities of fund settlement will not allow all authorised fund managers to offer T+1 settlement for units in funds. For UK authorised funds and recognised schemes, the FCA supports the recommendation of moving towards a T+2 settlement cycle to align with the consumer duty and better support retail investors in meeting their financial goals. The FCA states that funds currently operating on T+4 cycle should carefully consider how an extended gap between market settlement and fund unit settlement would impact investors. The FCA advises fund managers to begin planning early for the transition and notes that, going forward, any settlement period longer than two business days will require strong justification. -
FCA updates to requirements, limitations and directions
29 May 2025
The UK Financial Conduct Authority (FCA) has announced updates to the requirements, directions and limitations applied to firms. This follows a review which identified that certain data was out of date, superseded by new content or contained minor errors. As part of the FCA's strategy to become a smarter and more efficient regulator, it will be taking action to ensure firm-related data is consistent, up-to-date, and necessary, enabling consumers to have access to clearer information and that firms receive improved service. Where changes have been identified as needed, the FCA's next steps will include: (i) automatically implementing immaterial updates that do not alter what a firm can or cannot do; and (ii) contacting firms directly where substantive changes are required, such as the removal of a requirement, direction or limitation. These changes will be taking place over the next few months. No action is required from firms unless the FCA contacts them directly. -
ESMA calls on platform providers to combat unauthorised financial promotions
28 May 2025
The European Securities and Markets Authority (ESMA) has issued written letters to several major social media and platform companies—including X, Meta, TikTok, Alphabet, Telegram, Snap, Amazon, Apple, Google and Reddit—urging them to take proactive steps against the promotion of unauthorised financial services on their platforms. ESMA suggests that this could be achieved by these companies checking ESMA's register of MiFID investment firms. This initiative seeks to combat the rising number of online scams targeting retail investors, which mislead consumers into engaging with unlicensed firms, resulting in financial losses and lack of trust in the wider financial sector and with digital platforms. ESMA's action is aligned with the recent initiative by the International Organization of Securities Commissions on combatting online harm, highlighting the global nature of the issue of financial misconduct in the digital environment. ESMA has also requested for meetings with these platform providers to develop a coordinated approach to retail investor protection from financial harm.Topic : Consumer / Retail -
FCA consults on stablecoin issuance and custody of cryptoassets
28 May 2025
The UK Financial Conduct Authority (FCA) has published consultation paper CP25/14 (CP) on stablecoin issuance and cryptoasset custody, accompanied by an updated webpage. This follows the FCA's discussion paper published in November 2023, which outlines the proposed approach to regulating stablecoins. This new CP is part of the FCA's roadmap for crypto regulation and is intended to be read alongside CP25/15, which sets out the proposed prudential regime for cryptoasset firms (and which we discuss here). In CP25/14, the FCA has proposed rules and guidance for the issuance of qualifying stablecoins and the safeguarding of qualifying cryptoassets, including stablecoins. These activities are expected to become regulated activities under the HM Treasury's draft legislation, the Financial Services and Markets Act 2000 (Regulated Activities and Miscellaneous Provisions) (Cryptoassets) Order 2025 subject to its finalisation.
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FCA consults on proposed prudential regime for cryptoasset firms
28 May 2025
The UK Financial Conduct Authority (FCA) has published consultation paper CP25/15 on its proposed prudential regime for cryptoasset firms, also accompanied by an updated webpage. This is intended to be read together with CP25/14 on stablecoin issuance and cryptoasset custody, which we discuss here. In this consultation paper, the FCA has proposed prudential rules and guidance for cryptoasset firms, including those issuing qualifying stablecoins and safeguarding qualifying cryptoassets, including stablecoins. The proposals introduce a new prudential regime to be integrated through two new sourcebooks: (i) COREPRU which will initially apply to firms carrying on regulated cryptoasset activities; and (ii) CRYPTOPRU, which will contain other sector-specific requirements for firms doing regulated cryptoasset activities, with these firms referred to as CRYPTOPRU firms.
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New FCA webpages on PISCES
27 May 2025
The UK Financial Conduct Authority (FCA) has published two new webpages on the Private Intermittent Securities and Capital Exchange Systems (PISCES) sandbox, a new type of trading platform designed to enable intermittent trading of private company shares. This update follows the FCA's December 2024 consultation on the PISCES framework. The first webpage provides background on the regulatory framework—including who can operate and participate in a PISCES platform—and sets out the FCA's next steps, including plans to publish the final rules in June and run the sandbox to test the framework until June 2030. The second webpage offers guidance for firms seeking to apply to operate a PISCES platform within the sandbox, detailing the application process, eligibility criteria and regulatory expectations for firms. The FCA has opened a pre-application support process to assist prospective applicants ahead of the formal application process from June.Topic : Securities -
EGOV Study on EU banking sector and competitiveness
26 May 2025
The Economic Governance and EMU Scrutiny Unit has published a study on enhancing EU competitiveness in the banking sector, provided at the request of the European Parliament's Committee on Economic and Monetary Affairs. The study emphasises the importance of a resilient and efficient banking sector for EU competitiveness. Building on its analysis, the study has recommended that, to achieve this, the EU should first prioritise the defragmentation of the banking market, and second, simplify and streamline the prudential framework for banks without compromising resilience.
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Corrigendum to EMIR 3 clarified counterparty risk rules for MMFs
26 May 2025
A corrigendum to Regulation (EU) 2024/2987, known as EMIR 3, was published in the Official Journal of the European Union. One of the changes EMIR 3 made was to amend the Money Market Funds Regulation (MMF Regulation) by adjusting the rules addressing counterparty risk in financial derivative transactions to take account of whether a transaction is cleared by an EU authorised or recognised CCP. The corrigendum makes a change to those adjusted rules by clarifying that in Article 17 of the MMF Regulation, it is the cash provided, rather than the cash received, by a Money Market Fund (MMF) as part of each reverse repurchase agreement that must not exceed 15% of the assets of the MMF. -
IOSCO final report and guidance for liquidity risk management for CIS
26 May 2025
The International Organization of Securities Commissions (IOSCO) has published its final report containing revised recommendations for liquidity risk management for collective investment schemes (CIS), accompanied by implementation guidance and a press release. The updated recommendations, which revise IOSCO's 2018 report, are aimed to enhance the resilience of open-ended funds in both normal and stressed market conditions by strengthening liquidity management practices across the product lifecycle. The report has included revised recommendations across six key areas: the CIS design process; liquidity management tools and measures; day-to-day liquidity management practices; stress testing; governance and disclosures to investors and authorities. Key revisions to the recommendations include clarifications on the definitions of common components of open-ended funds structure, the introduction of new liquidity management measures such as "soft closures" and "deferral of redemptions" and enhanced governance and disclosure requirements, among other things. IOSCO states that the implementation guidance should be read alongside the revised recommendations as it provides more detailed guidance and practices for effective implementation. IOSCO expects securities regulators to actively promote the implementation of these recommendations and will review progress by the end of 2026.Topic : Fund Regulation -
EBA issues opinion on Norway's measure of risk weight floor increase
23 May 2025
The European Banking Authority (EBA) has issued an opinion (dated 12 May) in response to a notification from the Norwegian Ministry of Finance, regarding its intention to recalibrate the risk weight floor for Norwegian retail residential real estate exposures under Article 458 of Regulation (EU) No 575/2013 of the Capital Requirements Regulation. The opinion was published alongside a press release. The measure, initially introduced on 31 December 2020 and extended until 30 June, will result in the risk weight floor increase from 20% to 25% starting from 1 July and remaining in force until 31 December 2026. It applies to all institutions established in Norway that use the Internal Ratings Based approach to calculate capital requirements for relevant exposures, seeking to address systemic risks arising from high household debt and rising real estate prices. The EBA does support the measure but invites the Ministry of Finance to closely monitor and review it to ensure proportionality and avoid overlaps with other regulatory requirements and measures already in place.Topic : Prudential Regulation -
FCA Handbook Notice 130
23 May 2025
The UK Financial Conduct Authority (FCA) has published Handbook Notice 130, which outlines updates to the FCA Handbook, including changes for fund managers stemming from the recommendations of the Investment Research Review and feedback to consultation paper CP24/21. These changes allow fund managers to use a joint payment option to pay for investment research and execution services, subject to a set of guardrails, aligning with rules already applicable to MiFID investment firms.
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FCA publishes consultation on streamlining complaints data reporting
22 May 2025
The UK Financial Conduct Authority (FCA) has published a consultation paper (CP25/13), with a press release and updated webpage, proposing the improvement of complaints reporting process as part of its five-year strategy to become a smarter regulator. The FCA's aim is to make data collection processes more simple, effective and consistent, as well as improving the quality of data that is collected and reducing regulatory burden.
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EBA onboarding plan for new Pillar 3 data hub
22 May 2025
The European Banking Authority (EBA) has published an onboarding plan, together with a press release, for large and other institutions to access and submit information to the new Pillar 3 Data Hub (P3DH)—a centralised platform for public disclosures under the revised Capital Requirements Regulation (CRR3). The onboarding plan includes procedural steps for institutions to follow when submitting Pillar 3 information and outlines a phased-in timeline for the process. The initiative will enable users to explore and visualise disclosures across institutions and over time, making it easier for institutions to benchmark themselves against peers and enhancing market discipline. The P3DH information will be available to the public from December. The EBA has also published a list of FAQs.Topic : Prudential Regulation -
PRA Phase 1 of Pillar 2A review
22 May 2025
The UK Prudential Regulation Authority (PRA) has published a consultation paper (CP12/25) setting out Phase 1 of its Pillar 2A review. This first phase review seeks to address the consequential impact of the near-final PRA rules that would implement the Basel 3.1 standards, as well as proposals to improve information, guidance and transparency for firms and options to reduce the reporting burden in the interests of proportionality.
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EBA consults on draft ITS on Pillar 3 disclosure frameworks
22 May 2025
The European Banking Authority (EBA) has published a consultation paper (CP) proposing amendments to Commission Implementing Regulation (EU) 2024/3172 on the EBA Pillar 3 disclosure framework, aligning it with the requirements of revised Capital Requirements Regulation (CRR3) on ESG-related risks, equity exposures and aggregate exposure to shadow banking entities. The CP also seeks to finalise the implementation of prudential disclosure requirements included in the EU banking package published in 2024. Through the amendments, the EBA aims to improve the transparency and consistency of disclosures while also simplifying the reporting process for institutions. The EBA also intends to provide an updated mapping tool to help institutions align Pillar 3 disclosures with supervisory reporting requirements. The deadline for comments to the consultation paper is 22 August. The final ITS are expected to be submitted to the European Commission by Q4 2025. -
Delegated regulation on identifying reference data for OTC derivatives published in OJ
22 May 2025
Commission Delegated Regulation (EU) 2025/1003 has been published in the Official Journal of the European Union (OJ), supplementing the EU Markets in Financial Instruments Regulation (MiFIR) as regards over-the-counter derivatives (OTC) identifying reference data for the purposes of MiFIR transparency requirements. The delegated regulation sets out the identifying reference data for OTC interest rate swaps and OTC credit default swaps, to meet transparency requirements under article 8a(2), 10 and 21 of MiFIR. The data will enable market participants and authorities to identify and distinguish these derivatives by asset class, instrument type, notional currency, among other relevant characteristics. The regulation will enter into force on 11 June 2025 and will apply from 1 September 2026.Topic : Derivatives -
Basel Committee on Banking Supervision discusses key initiatives
21 May 2025
The Basel Committee on Banking Supervision (BCBS) had met to discuss a range of initiatives, following the GHOS meeting which took place earlier this month. The discussions focused on:- Recent market developments and the financial stability outlook for the global banking system.
- Progress on efforts to strengthen supervisory effectiveness following the 2023 banking turmoil. An update on the outcome of this work will be published by the end of the year.
- Comments received to the BCBS consultation on third-part risk management in the banking sector. The BCBS has aimed to finalise principles for third-party risk management by the end of 2025.
- The use of technological innovation to make Pillar 3 disclosures more accessible in machine-readable formats. The BCBS plans to consult on this proposal by the end of the year.
- Prioritising the analysis of financial risks from extreme weather events. The BCBS is also mandated to publish the voluntary climate-related financial risk disclosure framework, which will be released in June.
Topic : Prudential Regulation -
EC call for advice to EBA for second benchmarking of national loan enforcements frameworks
21 May 2025
The European Commission (EC) has published a call for advice to the European Banking Authority (EBA) together with a letter from John Berrigan, Directorate-General of Financial Stability, Financial Services and Capital Markets Union (DG FISMA). The EC has asked the EBA to conduct a second benchmarking exercise on national loan enforcement frameworks from a bank creditor perspective, following the initial exercise conducted in 2019–2020. The benchmarking will assess the efficiency of enforcement procedures in terms of recovery rates, time to recovery and judicial costs. The EBA is expected to deliver a preliminary analysis by July, with the final report due by 31 October.Topic : Prudential Regulation -
PSR consolidated policy statement on APP scams reimbursement requirement
21 May 2025
The UK Payments Systems Regulator (PSR) has published a consolidated policy statement (PS25/5) concerning the authorised push payment (APP) fraud reimbursement requirement within the Faster Payments system, which came into effect on 7 October 2024. The document brings together previous publications on the reimbursement requirement to serve as a single point reference for stakeholders seeking to understand the policy and how it may impact them. The statement acts as general guidance to aid interpretation of the policy. The policy statement has also included FAQS on aspects of the APP scam reimbursement policy and, except where otherwise indicated, also applies to the requirements for reimbursement of APP fraud committed over the CHAPS payment system. -
ESMA launches call for evidence on retail investor journey under MiFID II
21 May 2025
The European Securities and Markets Authority (ESMA) has launched a call for evidence (CfE), accompanied by a press release, to gather input on the retail investor journey in capital markets under the revised EU Markets in Financial Instruments Directive (MiFID II). The CfE aims to assess whether regulatory or non-regulatory barriers may discourage retail investor participation in capital markets. The CfE considers:- Retail market trends, including the growing appeal of speculative products among younger investors and the rising influence of social media on investment decisions.
- Specific regulatory requirements under MiFID II, such as regulatory disclosures and assessment of suitability and appropriateness, which can impact retail investors.
- Additional areas such as the investor experience under the European crowdfunding framework and broader reflections on how to achieve the right balance between investor protection and enabling informed risk-taking.
Topic : MiFID II