On 2 July 2026, the Anti-Money Laundering Authority (AMLA) published a press release announcing a public consultation on draft technical standards establishing a common EU format for reporting suspicions and providing transaction records. The initiative aims to harmonise reporting practices across Member States and support a more consistent approach to the fight against financial crime throughout the European Union.

According to AMLA, current reporting requirements vary significantly between jurisdictions, creating operational complexity for entities operating cross-border and limiting the effectiveness of information exchange between Financial Intelligence Units (FIUs). The proposed standards seek to address these challenges by introducing common templates and harmonised data requirements for reporting suspicions and related transaction records.

Under the proposed framework, entities subject to anti-money laundering obligations would report information using a common set of standardised data fields across the EU. Reporting entities would only be required to complete the data points relevant to their business activities and the specific type of suspicion being reported. AMLA states that this approach is intended to accommodate sector-specific characteristics while ensuring a consistent reporting framework at EU level.

For reporting entities, AMLA expects the initiative to improve clarity and consistency, particularly for organisations operating in multiple Member States. For FIUs, the use of standardised reporting formats is intended to facilitate the receipt of more structured and comparable information, supporting more efficient analysis and information-sharing processes.

AMLA has invited feedback from stakeholders across both the financial and non-financial sectors, as well as from competent authorities and European and international organisations. A public hearing on the draft standards is scheduled for 9 September 2026, and interested parties are encouraged to participate in the consultation process and submit comments on the proposed framework.

The consultation represents an early stage in the development of harmonised EU reporting standards and seeks stakeholder input on the proposed common format before the standards are finalised.

On 21 July 2026, the Anti-Money Laundering Authority (AMLA) published a Final Report containing draft Implementing Technical Standards (ITS) under Article 15(3) of Regulation (EU) 2024/1620 (AMLAR) which establish detailed procedures for cooperation between AMLA and national AML/CFT financial supervisors in the context of AMLA's direct supervision regime.

The draft ITS support the implementation of the EU AML supervisory framework under which AMLA will directly supervise selected high-risk cross-border financial institutions from 2028. The standards set out operational arrangements governing cooperation between AMLA and national supervisors throughout the direct supervision lifecycle.

The ITS cover five main areas:
(i) general cooperation requirements, including obligations to cooperate in good faith, information exchange and use of secure communication channels;
(ii) the periodic assessment and selection process for entities eligible for direct AMLA supervision;
(iii) procedures for notifying and publishing decisions on selected obliged entities;
(iv) arrangements for transferring supervisory tasks and powers between national supervisors and AMLA;
(v) the composition and functioning of Joint Supervisory Teams (JSTs).

The framework introduces a sequential selection process under which national supervisors collect eligibility information and risk-related data, perform quality checks and transmit information to AMLA, while AMLA conducts risk assessments and determines which entities will be selected for direct supervision.

The ITS also establish timelines for data collection and reporting, procedures for publication of selected entities, requirements for maintaining supervisory continuity during transfers of responsibility, and rules supporting information sharing within JSTs.

The final report highlights AMLA's objective of balancing legal certainty with proportionality and operational flexibility. Following consultation feedback, AMLA introduced measures intended to reduce reporting burdens, including exemptions from eligibility data collection where supervisors can reliably determine that entities are not eligible. The draft ITS will now be submitted to the European Commission for adoption and subsequent publication in the Official Journal.

On 8 July 2026, the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) published a Final Report containing draft Regulatory Technical Standards (RTS) under Article 53(10) of Directive (EU) 2024/1640, which specify indicators for classifying the gravity of AML/CFT breaches, criteria for determining pecuniary sanctions and administrative measures, and a methodology for imposing periodic penalty payments.

The draft RTS establish a harmonised EU framework for AML/CFT enforcement applicable across both financial and non-financial sectors. Supervisors will follow a three-step approach. First, they must assess breaches using common indicators including duration, repetition, conduct, impact, exposure to money laundering and terrorist financing risks, structural failures, and effects on financial stability. Second, breaches must be classified into one of four severity categories. Third, supervisors must apply common criteria when determining sanctions or administrative measures. Breaches classified as category three or four are deemed serious, repeated or systematic within the meaning of the AMLD.

The RTS provide criteria for increasing or decreasing pecuniary sanctions, taking into account factors such as cooperation with supervisors, remedial actions, intentionality, benefits derived from the breach, losses caused to third parties, and previous compliance history. They also introduce common criteria for applying severe administrative measures, including business restrictions, withdrawal or suspension of authorisation, and governance changes.

In addition, the RTS establish procedural requirements for periodic penalty payments (PePPs), a new AML/CFT enforcement tool intended to compel compliance with administrative measures. The standards set out requirements relating to the right to be heard, decision-making processes, payment calculations, and limitation periods.

Following public consultations conducted by the EBA in 2025 and AMLA in 2026, the Final Report will be submitted to the European Commission for adoption and subsequent publication in the Official Journal of the European Union. The draft RTS provide that the regulation would apply from 10 July 2027, with a deferred application date of 10 July 2029 for football clubs and football agents.

On 1 July 2026, the European Data Protection Board (EDPB) published the news item “EDPB and AMLA to develop Joint Guidelines on partnerships for information sharing”, which announces a joint initiative between the EDPB and the Anti-Money Laundering Authority (AMLA) to develop Joint Guidelines on information-sharing partnerships in the context of anti-money laundering and counter-terrorist financing efforts.

The publication explains that cooperation and information sharing are important tools in detecting and preventing money laundering and terrorist financing. It notes that Article 75 of the AML Regulation allows entities subject to anti-money laundering requirements to share information with one another and with public authorities, within defined limits. According to the publication, this new information-sharing framework will become applicable from 10 July 2027.

The EDPB and AMLA state that because such information sharing involves the processing of personal data, appropriate data protection safeguards are essential. The planned Joint Guidelines are intended to provide practical clarification on how information-sharing partnerships can be structured so that the objective of combating financial crime is balanced with the protection of personal data. The Guidelines are expected to provide greater clarity for private-sector entities, supervisory authorities, Financial Intelligence Units (FIUs), and data protection authorities regarding the establishment and operation of such partnerships.

The publication further indicates that stakeholder engagement will form part of the development process. The EDPB and AMLA plan to organise a stakeholder event later in 2026 to gather views on areas requiring clarification. They also intend to launch a public consultation on draft Guidelines during the first half of 2027. A joint drafting team composed of representatives from both authorities will lead the work, with additional information on the scope and content of the Guidelines to be provided as the project progresses.

BACKGROUND

On 24 July 2026, the Official Journal of the European Union published Regulation (EU) 2026/1744 amending Regulation (EU) 2024/1689 (AI Act), Regulation (EU) 2018/1139 on civil aviation and Regulation (EU) 2023/1230 on machinery. The Regulation introduces targeted amendments to simplify the implementation of the EU artificial intelligence framework, reduce administrative burdens and increase legal certainty while maintaining the level of protection for health, safety and fundamental rights.

The amendments concern providers, deployers and other operators of AI systems subject to the AI Act, including SMEs and small mid-cap enterprises, as well as high-risk AI systems falling within the relevant product safety and sectoral frameworks.

WHAT'S NEW?

Proportionality and high-risk AI requirements

The Regulation clarifies the definition of a safety component and introduces additional proportionality measures for SMEs and SMCs. It also simplifies technical documentation and quality management requirements and provides mechanisms to limit duplication where equivalent or higher requirements already exist under sector-specific Union harmonisation legislation.

AI literacy and bias detection

The AI literacy obligation is revised so that providers and deployers must take measures to support the development of AI literacy rather than guarantee a specific level. The Regulation also extends the legal basis for processing special categories of personal data for bias detection and correction, subject to specified safeguards.

Prohibited AI practices and supervision

New prohibitions cover certain AI systems generating or manipulating non-consensual intimate material and child sexual abuse material. The Regulation also:

• strengthens the supervisory and enforcement powers of the AI Office;
• clarifies the allocation of supervisory competences;
• expands AI regulatory sandboxes and real-world testing arrangements.

WHAT'S NEXT?

The application of requirements for high-risk AI systems under Article 6(2) and Annex III is postponed to 2 December 2027.

For high-risk AI systems under Article 6(1) and Annex I, the relevant requirements will apply from 2 August 2028.

The Regulation also mandates further Commission guidance and delegated acts and provides for transitional arrangements for generative AI providers.

On 23 July 2026, the European Banking Authority (EBA) published a Consultation Paper on Draft Guidelines on Investment of Available Financial Means under Directive 2014/49/EU on Deposit Guarantee Schemes, as amended by DGSD3, which proposes a harmonised framework for how Deposit Guarantee Schemes (DGSs) should invest, diversify, manage liquidity, and govern the investment of their available financial resources.

The draft Guidelines are developed pursuant to Article 10(13) of DGSD3, which mandates the EBA to provide guidance on the diversification of DGS funds and investment in low-risk assets. The proposals aim to ensure that DGS funds remain immediately available for depositor reimbursements, resolution actions, preventive measures and other interventions under the revised depositor protection framework.

The consultation introduces minimum standards for DGS investment strategies, requiring formal documentation, governance arrangements, monitoring processes, liquidity management mechanisms and regular reviews. DGSs would be expected to establish diversification frameworks based on at least two criteria, including issuer, geography, maturity, duration, asset class or ESG factors, while a risk-based "comply or explain" approach would allow justified deviations.

The Guidelines further require DGSs to assess low-risk assets against their liquidity objectives and to conduct regular liquidity stress testing. Where stress-testing identifies liquidity shortfalls, DGSs would need to maintain at least one liquidity mechanism, such as repo facilities, collateralised loans, asset-backed credit lines or similar arrangements, to ensure timely access to funds.

In addition, the draft framework introduces governance requirements where implementation of the investment strategy is delegated to third parties, including delegation policies, oversight arrangements, monitoring processes and accountability provisions.

The consultation remains open until 23 October 2026, with a public hearing scheduled for 24 September 2026. Following the consultation, the EBA will assess stakeholder feedback and finalise the Guidelines. The draft Guidelines are proposed to apply from 11 May 2028.

On 27 July 2026, the European Parliament Committee on Industry, Research and Energy (ITRE) and Committee on Civil Liberties, Justice and Home Affairs (LIBE) published Amendments 1741–1840 to the Draft Report on the Proposal for a Regulation amending several EU digital acts (Digital Omnibus), which proposes changes to the Commission’s Digital Omnibus proposal and the related amendments to NIS2, DORA, eIDAS, the CER Directive, the AI Act and other digital legislation.

The amendments focus primarily on the proposed creation of a cybersecurity incident reporting “single-entry point” managed by ENISA and the harmonisation of reporting obligations across multiple EU legal frameworks. Various amendments seek to clarify the respective roles of ENISA, national authorities and national reporting portals, including proposals requiring Member States to establish national single-entry points and ensure interoperability among them.

Several amendments also propose harmonised incident reporting templates, common technical standards, common reporting taxonomies, streamlined reporting procedures and mechanisms to reduce duplicative reporting obligations across different EU laws.

The amendments further address incident reporting under NIS2, DORA, eIDAS, the Critical Entities Resilience (CER) Directive, the Cyber Resilience Act (CRA) and the AI Act. Some proposals would allow a single notification to satisfy multiple reporting obligations, while others introduce requirements concerning interoperability, reporting deadlines, technical specifications, reporting formats, incident classifications and supervisory coordination. Several amendments also address governance arrangements, stakeholder consultation, security measures, cross-border reporting and the concept of a “main establishment” for cybersecurity reporting purposes.

In addition, a number of amendments challenge or modify the Commission’s proposed repeal of certain digital legislation, including Regulation (EU) 2019/1150 (Platform-to-Business Regulation), Regulation (EU) 2022/868 (Data Governance Act), Regulation (EU) 2018/1807 and Directive (EU) 2019/1024. These amendments form part of the European Parliament’s ongoing consideration of the proposed Digital Omnibus Regulation and do not constitute final legislative text.

On 3 July 2026, the European Securities and Markets Authority (ESMA) published a communication launching a Common Supervisory Action (CSA) on the risk management function of UCITS management companies and Alternative Investment Fund Managers (AIFMs), to be conducted across the European Union in cooperation with National Competent Authorities (NCAs) throughout 2026 and 2027.

The objective of the CSA is to assess how market participants comply with key risk-management requirements under the UCITS and AIFMD frameworks. In particular, the exercise will evaluate the effectiveness, independence and expertise of the risk management function within UCITS management companies and AIFMs.

ESMA highlights that risk management is a core component of investor protection and financial stability. The function is expected to ensure that material risks, including market, credit, liquidity, counterparty and operational risks, are properly identified, measured, monitored and managed.

During the supervisory exercise, NCAs will focus on three main areas:

• Governance and organisation of the risk management function;
• Risk identification, measurement and monitoring processes; and
• Reporting arrangements to senior management and governing bodies.

The CSA will be based on a common assessment framework developed by ESMA. The framework establishes the scope, methodology, supervisory expectations and timeline for the exercise, with the objective of promoting a convergent supervisory approach across the European Union.

Throughout the exercise, NCAs will exchange supervisory experiences and findings through ESMA to support supervisory convergence and improve oversight of risk management functions across the investment management sector. ESMA states that it intends to publish a final report on the results of the exercise in 2028.

On 16 July 2026, the Official Journal of the European Union published Commission Delegated Regulation (EU) 2026/788, which amends Delegated Regulation (EU) 2016/522 supplementing the Market Abuse Regulation (MAR).

The Delegated Regulation updates provisions concerning permission for trading during closed periods, the designation of trading venues with a significant cross-border dimension for market abuse supervision, and indicators of market manipulation.

The Regulation aligns Delegated Regulation (EU) 2016/522 with amendments introduced by Regulation (EU) 2024/2809. In particular, it extends existing provisions governing exemptions from MAR closed-period trading restrictions to cover financial instruments other than shares. Persons discharging managerial responsibilities (PDMRs) seeking to trade during a closed period must submit a reasoned written request to the issuer, explaining why the sale of shares or other financial instruments is the only reasonable means of obtaining necessary financing. Issuers must assess such requests on a case-by-case basis and may grant permission only where circumstances are considered exceptional.

The Regulation also introduces a new Annex III identifying trading venues deemed to have a significant cross-border dimension in the supervision of market abuse with respect to shares. The designated venues are Aquis Exchange Europe, TP ICAP (Europe) SA, Cboe Europe B.V., and Turquoise Global Holdings Europe B.V. The designation supports the MAR framework requiring competent authorities to establish mechanisms for ongoing exchange of order data relating to cross-border market abuse supervision.

In addition, the Regulation updates Annex II on market manipulation indicators. The amendments clarify that supervisory assessments may be conducted over periods longer or shorter than a trading day or session, particularly for less liquid instruments and algorithmic trading environments. The Regulation further expands guidance relating to significant volume changes, indirect economic exposures, position reversals, layering and spoofing practices, and other market manipulation indicators in order to support more consistent supervisory application.

The Regulation enters into force on the twentieth day following its publication in the Official Journal of the European Union.

On 31 July 2026, the European Central Bank (ECB) published the final results of the "Geopolitical risk reverse stress test of euro area banks – 2026 SSM thematic stress test", which assessed the ability of 110 significant institutions directly supervised by the ECB to identify and evaluate severe geopolitical scenarios capable of materially reducing their capital positions.

The exercise forms part of the ECB's supervisory priority on geopolitical risk for 2026-2028 and aimed to enhance banks' forward-looking risk management, stress-testing capabilities, capital planning and recovery planning under conditions of elevated geopolitical uncertainty. Rather than applying a common adverse scenario, the ECB required each participating bank to design its own plausible geopolitical reverse stress test scenario capable of generating at least a 300 basis point depletion of its Common Equity Tier 1 (CET1) ratio.

Participating institutions developed a broad range of scenarios involving military conflicts, energy and supply chain disruptions, trade restrictions, sanctions, cyberattacks, political instability and macroeconomic shocks. Banks were required to assess the transmission of these events through financial market, real economy and safety/security channels, as well as their impact on solvency, liquidity and non-financial risks.

The ECB concluded that banks generally demonstrated the capability to produce economically meaningful scenarios reflecting their individual risk profiles and vulnerabilities. However, the exercise identified several weaknesses in stress-testing frameworks, including insufficient granularity and sensitivity of risk assessments, inconsistencies between scenario narratives and risk impacts, unrealistic assumptions regarding mitigating management actions, inadequate treatment of solvency-liquidity interactions, and shortcomings in modelling liquidity and foreign-exchange funding stress.

The ECB also highlighted the importance of incorporating operational resilience and cyber risk considerations into stress-testing frameworks. Cyber incidents and disruption of third-party services emerged as the most frequently identified non-financial risks.

Results will feed into ongoing supervisory dialogue and may inform qualitative assessments within the Supervisory Review and Evaluation Process (SREP). The exercise itself will not lead to changes in Pillar 2 Guidance or leverage ratio Pillar 2 Guidance.

BACKGROUND

On 14 July 2026, the European Commission adopted a Commission Delegated Regulation amending Delegated Regulation (EU) No 149/2013 as regards clearing thresholds and the mechanisms triggering their review. The Regulation supplements Regulation (EU) No 648/2012 on OTC derivatives, central counterparties and trade repositories (EMIR), as amended by Regulation (EU) 2024/2987 (EMIR 3).

EMIR 3 introduced changes to the clearing threshold framework, including an aggregate clearing threshold for financial counterparties and a revised methodology for calculating uncleared positions. The Delegated Regulation, based on draft regulatory technical standards submitted by the European Securities and Markets Authority (ESMA) on 25 February 2026, specifies the values of the aggregate and uncleared clearing thresholds and establishes mechanisms for their review. The thresholds apply, as relevant, to financial and non-financial counterparties subject to the EMIR clearing obligation.

WHAT'S NEW?

Aggregate clearing thresholds

For financial counterparties, the Regulation introduces clearing thresholds for aggregate OTC derivative positions in asset classes subject to the clearing obligation:

• OTC credit derivatives: EUR 1 billion in gross notional value.
• OTC interest rate derivatives: EUR 3 billion in gross notional value.

Uncleared position thresholds

The Regulation recalibrates thresholds applicable to uncleared OTC derivative positions:

• Credit: EUR 0.8 billion; equity: EUR 0.7 billion; interest rate: EUR 2.2 billion.
• Foreign exchange: EUR 3 billion.
• Commodity and emission allowance derivatives combined: EUR 4 billion.

Threshold review mechanism

ESMA must assess, at least annually, indicators including underlying prices and volatility, clearing rates, the proportion of entities clearing OTC derivatives, inflation, global financial conditions, and geopolitical and economic policy uncertainty. Where ESMA identifies significant changes in these indicators, it must initiate a review of the aggregate and uncleared clearing thresholds in accordance with EMIR.

The existing criteria in Article 10 of Delegated Regulation (EU) No 149/2013 for identifying OTC contracts objectively measurable as reducing risks remain unchanged.

WHAT'S NEXT?

The Delegated Regulation will enter into force on the 20th day following its publication in the Official Journal of the European Union.

No separate application or transitional date is specified. The Regulation will be binding in its entirety and directly applicable in all Member States following its entry into force.

ESMA will assess the specified indicators at least annually and initiate a review of the clearing thresholds where significant changes are identified.

On 17 July 2026, the European Banking Authority (EBA) published a Final Report on Draft Regulatory Technical Standards (RTS) and Draft Implementing Technical Standards (ITS) which specifies the prudential framework for material acquisitions, material transfers of assets or liabilities, mergers and divisions under CRD6.

The report delivers draft RTS and ITS mandated by Directive (EU) 2024/1619 (CRD6), establishing a harmonised EU framework for notifications, assessments and supervisory cooperation relating to these prudentially material transactions. The RTS set out the minimum information that institutions must provide, the assessment methodologies to be applied by competent authorities, and the procedures governing notifications and prudential assessments. The ITS establish common procedures, forms and templates for consultation between competent authorities involved in reviewing such transactions.

The RTS are structured into four chapters covering material acquisitions, material transfers, mergers and divisions. The framework introduces harmonised methodologies for determining materiality thresholds, including a 15% eligible capital threshold for material acquisitions and specific thresholds for material transfers. To prevent avoidance of notification requirements, transactions executed within a 12‑month period must be aggregated when assessing materiality.

A key feature of the framework is proportionality. The RTS provide simplified information requirements and assessment approaches for intra-group transactions, institutional protection schemes and certain smaller or less complex mergers. The standards also allow competent authorities to rely on information already available through supervisory processes and on documentation prepared under the Company Law Directive.

For material acquisitions, mergers and divisions, assessments focus on ongoing compliance with prudential requirements, governance arrangements, business model sustainability, financial forecasts and AML/CFT considerations. The ITS further define consultation processes among supervisory authorities, including joint-decision mechanisms where consolidated and solo supervisors are both involved.

The draft RTS and ITS will now be submitted to the European Commission for endorsement, followed by scrutiny by the European Parliament and Council before publication in the Official Journal of the European Union.

On 15 July 2026, the European Central Bank (ECB) published the ECB Guide to the Internal Capital Adequacy Assessment Process (ICAAP), which sets out the ECB’s supervisory expectations regarding how significant institutions should implement, maintain and govern their ICAAP frameworks under Article 73 of the Capital Requirements Directive (CRD). The Guide is intended to provide transparency on the ECB’s interpretation of ICAAP requirements and to promote consistent supervisory practices across the Single Supervisory Mechanism (SSM).

The Guide establishes seven supervisory principles that the ECB considers when assessing ICAAPs within the Supervisory Review and Evaluation Process (SREP). These principles cover governance and management body responsibilities, integration of ICAAP into the overall management framework, maintenance of capital adequacy through both economic and normative perspectives, comprehensive risk identification, internal capital definitions, risk quantification methodologies, and stress testing.

The Guide emphasizes that institutions should operate ICAAPs based on two complementary perspectives. The normative perspective assesses a bank’s ability to meet regulatory and supervisory capital requirements over a multi-year horizon, while the economic perspective assesses whether internal capital adequately covers all material risks from an economic value viewpoint. The ECB expects both perspectives to inform one another and be integrated into strategic decision-making, risk management, capital planning, recovery planning, and risk appetite frameworks.

The Guide sets expectations regarding management body accountability, including annual approval of key ICAAP elements and issuance of a Capital Adequacy Statement (CAS). It also outlines requirements for annual risk identification processes, maintenance of risk inventories, prudent internal capital definitions, independent validation of risk quantification methodologies, robust data quality frameworks, and regular stress testing, including reverse stress testing.

The Guide applies to significant supervised credit institutions within the SSM and follows a principles-based approach. It does not replace applicable legislation and acknowledges that implementation remains the responsibility of each institution, subject to proportionality based on the nature, scale and complexity of its activities. The ECB states that the Guide will be updated periodically to reflect supervisory experience and regulatory developments.

On 24 July 2026, the Official Journal of the European Union published Decision (EU) 2026/1754 of the European Central Bank, which amends Decision (EU) 2022/911 concerning the terms and conditions of TARGET-ECB and repeals Decision ECB/2007/7.

The Decision updates the contractual and operational framework governing TARGET-ECB to reflect amendments previously introduced into the TARGET Guideline. The changes primarily concern the TARGET Instant Payment Settlement (TIPS) service, liquidity management functionalities, participation requirements, and fee arrangements.

A key amendment introduces support within TIPS for the European Payments Council's SEPA One-Leg Out Instant Credit Transfer (OCTs Inst) scheme, allowing participants to send and receive relevant instant payments from 14 November 2026. The Decision incorporates participation and adherence requirements for TIPS participants, reachable parties and ancillary systems wishing to use the OCTs Inst functionality. It also updates definitions, messaging requirements and operational procedures associated with these payments.

The Decision additionally introduces rule-based liquidity transfer orders, enabling participants to define floor and ceiling limits on accounts and automate liquidity movements between Main Cash Accounts (MCAs), RTGS Dedicated Cash Accounts (RTGS DCAs) and TIPS Dedicated Cash Accounts (TIPS DCAs) when predefined thresholds are breached. The changes are intended to support more efficient liquidity management within TARGET.

Further amendments revise TARGET-ECB account and settlement provisions, update the treatment of instant payment orders and recall responses, amend TIPS directory information requirements, and modify technical messaging specifications. The Decision also updates the pricing structure applicable to RTGS DCA holders and confirms charging arrangements for TIPS transactions.

The Decision enters into force on the fifth day following publication in the Official Journal of the European Union, while a number of provisions related to OCTs Inst participation and associated TIPS functionality apply from 14 November 2026.

On 30 July 2026, the Single Resolution Board (SRB) published the document Operational Guidance on the Business Reorganisation Plan Analysis Report (Version 1.1), which provides operational guidance for banks to develop and maintain capabilities to prepare Business Reorganisation Plans (BRPs) following the application of the open-bank bail-in (OBBI) resolution tool. The guidance aims to support institutions in demonstrating their ability to restore long-term viability after resolution and to meet existing resolution planning expectations.

The document explains how institutions should prepare a Business Reorganisation Plan Analysis Report (BRP AR), a preparatory document intended to evidence governance arrangements, operational readiness, business reorganisation capabilities and the institution's capacity to restore viability following resolution. The guidance is designed to support implementation of requirements stemming from the Bank Recovery and Resolution Directive (BRRD), the Single Resolution Mechanism Regulation (SRMR), related RTS, and existing EBA and SRB guidance.

The guidance establishes expectations regarding governance arrangements, stakeholder responsibilities, operational processes, scenario design, identification of recovery options and other reorganisation measures, implementation timelines, assessment of constraints, and financial impact analysis. Institutions are expected to identify a "Core Bank" representing the minimum viable activities and business lines to be preserved following resolution and to develop a catalogue of business reorganisation measures that could support post-resolution viability.

The document also introduces expectations regarding the determination of Maximum Reorganisation Capacity (MRC), requiring institutions to assess compatible reorganisation measures, develop implementation roadmaps, prepare financial projections, conduct sensitivity analyses, and demonstrate post-OBBI long-term viability within a maximum five-year reorganisation period. Viability assessments are expected to consider profitability, cost efficiency, prudential compliance, capital and liquidity positions.

The guidance is explicitly described as operational guidance and is not legally binding. It does not amend existing legal requirements but seeks to promote convergence of practices and support resolution readiness within the Banking Union. Institutions are expected to implement the guidance within their normal resolution planning cycle and update BRP ARs when material changes occur.

On 24 July 2026, the European Banking Authority (EBA) published the draft technical package for version 4.4 of its reporting and disclosure framework, which introduces technical specifications and reporting updates relating to IFRS 18 reporting, Pillar 3 ESG disclosures, Fundamental Review of the Trading Book (FRTB) disclosures, resolution planning, AMLA reporting requirements, and other technical amendments.

The draft package includes validation rules, the Data Point Model (DPM), XBRL taxonomies and a draft glossary intended to support institutions in preparing for forthcoming reporting and disclosure requirements before publication of the final package in September 2026.

Key elements of the package include:

Amendments to the Implementing Technical Standards (ITS) on Pillar 3 disclosures concerning ESG risks, equity exposures and aggregate exposure to shadow banking entities, with a first reference date of 31 December 2026 (or 31 December 2027 for SNCIs).
Introduction of new FINREP templates aligned with IFRS 18, with a first reference date of 31 March 2027.
Integration of FRTB-related disclosure templates into the DPM, with a first reference date of 31 March 2027.
Technical amendments to the DPM and taxonomy related to resolution planning, MREL decisions and Pillar 3 disclosures, with a first reference date of 31 December 2026.
Introduction of DPM and taxonomy requirements for AMLA eligibility templates, with a first reference date of 31 December 2026.

The EBA stated that the publication is intended to provide stakeholders with additional implementation time and facilitate early feedback before finalisation. Stakeholders are invited to submit comments on the draft technical package and glossary by 24 August 2026. The final technical package is expected in September 2026. The draft package also continues the transition towards DPM 2.0 and includes a revised conversion file between DPM 1.0 and DPM 2.0 glossary structures. The EBA notes that the document is for information purposes only and that additional elements will be included in the final release.

On 8 July 2026, the European Banking Authority (EBA) published its Final Report on draft Implementing Technical Standards (ITS) on the implementation of IFRS 18 in supervisory financial reporting (FINREP). The Final Report sets out the revised FINREP templates and instructions affected by IFRS 18, with the objective of aligning supervisory reporting requirements with the new presentation requirements introduced by IFRS 18.

IFRS 18, endorsed in the European Union through Commission Regulation (EU) 2026/338, replaces IAS 1 and introduces a revised structure for the statement of profit or loss. Institutions will apply IFRS 18 to public financial statements from 1 January 2027, while the amended FINREP ITS incorporating IFRS 18 are currently expected to become mandatory only from the end of September 2027.

The amendments include updates to the Statement of Profit or Loss (F 02.00), the introduction of operating, investing and financing categories consistent with IFRS 18, the maintenance of existing reporting granularity through templates F 16 and F 45, and technical adjustments intended to preserve comparability and avoid divergent reporting requirements.

Alongside the Final Report, the EBA also published an Opinion on the implementation of IFRS 18 in FINREP. The Opinion provides guidance on the reporting of profit or loss information during the period between the first application of IFRS 18 and the expected application of the amended FINREP ITS.

The Opinion aims to support institutions by avoiding the operational burden of maintaining two different profit or loss reporting formats during the transitional period and by ensuring consistency between IFRS financial statements and supervisory reporting requirements.

To bridge this timing gap, the EBA advises competent authorities to permit institutions to voluntarily use IFRS 18-aligned FINREP templates during the interim period. These templates are based on the finalised amendments developed under the EBA’s draft ITS package and reflect feedback received during the related public consultation.

The EBA plans to publish the technical package containing the Data Point Model, validation rules and XBRL taxonomy for these templates during 2026. The final amended ITS is expected to be submitted to the European Commission by the end of 2026, with mandatory application currently expected from the end of September 2027.

On 9 July 2026, the European Banking Authority (EBA) published the final technical package for version 4.3 of its reporting framework, which implements new reporting requirements for Third-Country Branches (TCBs) under the Capital Requirements Directive (CRD) and supports the implementation of a risk assessment data collection exercise by the Anti-Money Laundering Authority (AMLA).

The final technical package provides the standard technical specifications necessary to support the relevant reporting obligations. These specifications include validation rules, the Data Point Model (DPM), and XBRL taxonomies. The package covers two principal reporting streams.

First, it supports the final draft Implementing Technical Standards (ITS) on supervisory reporting for Third-Country Branches, developed pursuant to Article 48l(1) of the CRD. The framework establishes the reporting architecture required for supervisory reporting by TCBs, with the first reporting reference date set for 31 March 2027.

Second, the package introduces DPM and taxonomy components to support AMLA risk assessment reporting. These components facilitate the methodology used to identify obliged entities that may fall under the direct supervision of AMLA. The first reporting reference date for this exercise is 31 December 2026.

In addition, the EBA has published a new Glossary Usage Exploration file intended to improve the usability and interpretation of the reporting framework. The file allows users to navigate glossary concepts, definitions and relationships within the DPM, thereby supporting impact assessments and promoting a more consistent understanding of the reporting framework’s semantic model.

The final package incorporates stakeholder feedback received following publication of the draft version on 17 April 2026. It includes updated DPM annotated templates, common data points, validation rules, glossary content and the related XBRL taxonomy. The EBA also notes that a targeted “hotfix” update may be issued at the end of September 2026 should critical clarifications or adjustments be required following early implementation feedback.

On 13 July 2026, the European Commission published a Commission Delegated Regulation which amends the regulatory technical standards (RTS) under MiFIR relating to derivatives transparency, package orders and the OTC derivatives consolidated tape, and corrects an error in Delegated Regulation (EU) 2017/587.

The Delegated Regulation forms part of the implementation of the MiFIR Review (Regulation (EU) 2024/791), which introduced amendments to the transparency requirements applicable to trading venues and investment firms, aiming at enhancing market data transparency and supporting the establishment of consolidated tapes across the EU.

The present amendments to Commission Delegated Regulations (EU) 2017/583, (EU) 2017/2194, (EU) 2025/1155, and the corrections to Commission Delegated Regulation (EU) 2017/587 are made to achieve an effective transparency regime and for the successful establishment of the consolidated tape for OTC derivatives.

Article 1 brings amendments to Delegated Regulation (EU) 2017/583 that affect in priority market operators and investment firms operating an MTF or an OTF and investment firms trading outside of a trading venue. The changes brought:

• revise the definition of a "package transaction"
• introduce static liquidity determinations and static large-in-scale thresholds to be considered by market operators and investment firms operating a trading venue
• specify how to flag a package transaction in the context of post trade transparency obligations of market operators and investment firms operating a trading venue
• specify circumstances under which market operators and investment firms operating an MTF or an OTF and investment firms trading outside of a trading venue may defer the publication of the details of transactions
• revise the methodology market operators operating a regulated market shall apply to determine the transparency thresholds for equity derivatives
• revise transparency exemptions for monetary, foreign exchange and financial stability policy related transactions of a member of the European System of Central Banks (ESCB) that is not a member of the Eurosystem
• revise the methodology competent authorities shall apply to decide temporary exemptions of transparency obligations

Article 2 brings amendments to Delegated Regulation (EU) 2017/2194 that specify how Counterparties and CCPs shall report OTC derivative package orders to trade repositories.
Under this revised framework, package orders are only subject to pre-trade transparency where all components are themselves subject to transparency requirements.

Article 3 brings amendments to Delegated Regulation (EU) 2025/1155 that specify input and output data requirements for the future OTC derivatives consolidated tape provider (CTP) and excludes exchange-traded commodities (ETCs) and exchange-traded notes (ETNs) from the bond consolidated tape. This is primarily relevant for data contributors, i.e., trading venues and approved publication arrangements (APAs) who provide input data to the CTP.

Article 4 corrects an unintended deletion in Delegated Regulation (EU) 2017/587 by restoring requirements for investment firms to ensure certain transactions are made public as a single transaction.

The Regulation enters into force 20 days after publication in the Official Journal of the European Union, while the substantive amendments contained in Articles 1, 2 and 3(1)-(5) will apply from 1 March 2027.

On 15 July 2026, the European Central Bank (ECB) published “ECB clarification on ICAAPs and ILAAPs and respective package submissions”, which provides clarifications on supervisory expectations relating to banks’ internal capital adequacy assessment processes (ICAAPs), internal liquidity adequacy assessment processes (ILAAPs), and associated submissions to Joint Supervisory Teams (JSTs).

The document reiterates existing supervisory expectations established in the ECB ICAAP and ILAAP Guides and related EBA Guidelines, while stating that it does not introduce new requirements or expectations. Instead, it aims to clarify sound practices for capital and liquidity adequacy assessments, governance arrangements, capital and liquidity planning, stress testing, management actions, and supervisory reporting.

The ECB emphasises that ICAAPs and ILAAPs should be continuous processes supported by robust governance, regular reviews, and documented management body oversight. Capital and liquidity adequacy statements are expected to be approved and signed by the management body prior to submission. Banks are expected to maintain comprehensive risk inventories and provide evidence of the integration of capital and liquidity planning into risk management and decision-making processes.

The clarification sets out expectations for forward-looking assessments covering both normative and economic perspectives over at least a three-year horizon, using baseline and adverse scenarios. It also addresses stress testing methodologies, internal capital eligibility assessments, treatment of internal capital components, management actions, distribution policies, and the use of ICAAP outcomes in strategic decisions, remuneration, risk appetite, and capital allocation.

The document further confirms technical arrangements for ICAAP and ILAAP submissions. Since SREP 2025, institutions are expected to make annual submissions of key documents by 15 March and continuously submit new or significantly revised ICAAP/ILAAP-related documents throughout the year. Detailed guidance is also provided regarding required documentation, templates, reader’s manuals, reconciliation exercises, and the content of Capital Adequacy Statements and Liquidity Adequacy Statements.

On 2 July 2026, the European Securities and Markets Authority (ESMA) published a Final Report on the Call for Evidence on a comprehensive approach for the simplification of financial transaction reporting, which sets out recommendations for reducing complexity, duplication and costs associated with EU transaction reporting requirements.

The report forms part of ESMA’s broader Simplification and Burden Reduction (SBR) initiative and assesses ways to streamline reporting obligations under key EU frameworks, notably MiFIR, EMIR and SFTR. ESMA’s review found that major sources of reporting costs and operational complexity include frequent and unsynchronised regulatory changes, duplication of reporting across multiple frameworks and reporting channels, and dual-sided reporting obligations together with related reconciliation processes.

To address these issues, ESMA recommends a staged approach combining short-term burden-reduction measures with a longer-term structural reform. The central recommendation is the development of a single integrated transaction reporting framework across MiFIR, EMIR and SFTR based on a “report once” principle. Under this model, transaction information would be submitted once through a common modular reporting structure and subsequently reused by relevant authorities for supervisory purposes, reducing duplication while maintaining supervisory access to required data.

ESMA’s accompanying cost-benefit analysis indicates that the proposed approach could generate annual net savings of €250 million to €1 billion, reduce recurring reporting costs by approximately 22%–24%, and deliver 10-year discounted cumulative net benefits of €1.2 billion to €4.9 billion. Implementation costs are expected to be recovered within three to four years.

In addition to the longer-term reform, ESMA proposes intermediate measures including expanded use of delegated reporting arrangements, streamlined intragroup exemption procedures and targeted reductions of low-value or duplicative reporting requirements. Following publication of the report, ESMA will engage with EU institutions regarding the recommendations. Implementation of the “report once” framework would require targeted legislative changes, phased implementation and further engagement with industry experts on reporting templates, data standards and infrastructure development.

On 6 July 2026, the European Securities and Markets Authority (ESMA) published the Interim Report of the Effectiveness of the Active Account Requirement (AAR) and the First Annual Report of the Joint Monitoring Mechanism (JMM), which present preliminary findings on the implementation of the Active Account Requirement and the first year of cross-sectoral monitoring of the EU clearing ecosystem.

The Interim Report assesses the early effectiveness of the AAR during 2025 and early 2026 based on available supervisory data, analytics and industry feedback. ESMA reports that approximately 500 entities had notified ESMA and national competent authorities that they are subject to the AAR as of February 2026. Those entities account for more than 90% of notional outstanding held by EU entities in the relevant derivatives markets. Notifications were distributed across most Member States, with banks representing around half of notifying entities.

The report identifies early evidence of increased clearing activity at EU central counterparties (CCPs), particularly among smaller entities, and notes that some firms have fully relocated relevant clearing positions to EU CCPs. It also observes a gradual but limited shift in market share from systemically important third-country CCPs (Tier 2 CCPs) to EU CCPs in certain AAR-related products.

The First Annual Report of the JMM summarises monitoring activities conducted during 2025. It includes the results of AAR monitoring activities, analysis of cross-border clearing dependencies—particularly involving the United States—an assessment of trends affecting EU CCPs, and a review of existing EU-wide stress testing exercises. The report highlights the expansion of asset classes and products cleared within the EU and examines potential financial stability implications stemming from global clearing linkages.

ESMA notes that the AAR entered into force recently and that data gaps remain. Consequently, the effectiveness assessment will be carried out in two stages. This Interim Report represents the first stage, while a dedicated assessment methodology will be developed to support a final comprehensive assessment planned for 2027.

On 3 July 2026, the European Commission published a Commission Delegated Regulation amending Delegated Regulation (EU) 2023/2772 as regards the simplification of certain sustainability reporting standards. The delegated act revises the European Sustainability Reporting Standards (ESRS) used for sustainability reporting under Articles 19a and 29a of the Accounting Directive, as amended by the Corporate Sustainability Reporting Directive (CSRD).

The delegated regulation implements the simplification objectives introduced through the Omnibus I Directive (Directive (EU) 2026/470). The revised ESRS reduce reporting complexity while maintaining the overall objectives of sustainability reporting. Key changes include a reduction in the number of mandatory datapoints, prioritisation of quantitative disclosures over narrative disclosures, clearer differentiation between mandatory and voluntary datapoints, clarification of the materiality assessment process, improved consistency with EU legislation, and enhanced interoperability with international sustainability reporting standards.

According to the explanatory memorandum, EFRAG's proposed revisions reduced mandatory datapoints by approximately 61% and introduced additional flexibility measures, reliefs and phase-in provisions. The Commission further modified the draft standards to clarify materiality requirements, fair presentation principles, reporting aggregation levels, omission of information provisions, anticipated financial effects disclosures, greenhouse gas emissions reporting, climate transition plans, due diligence disclosures, and reporting requirements relating to asset management activities.

A specific provision relevant to financial institutions allows entities that manage investments on behalf of clients under fiduciary mandates not to disclose information concerning those investments in their own sustainability statements, recognising that such sustainability matters are primarily relevant to the clients and already addressed by separate EU disclosure frameworks.

The revised ESRS will apply to financial years beginning on or after 1 January 2027. For financial years beginning between 1 January 2026 and 31 December 2026, undertakings may voluntarily apply the revised ESRS or continue using the existing framework while benefiting from certain reliefs introduced by the delegated act. Undertakings must clearly state which version they apply during this transitional period.

BACKGROUND

On 3 July 2026, the European Commission adopted a Commission Delegated Regulation supplementing Directive 2013/34/EU (Accounting Directive) by establishing sustainability reporting standards for voluntary use by undertakings protected by the value chain cap. The Regulation follows the amendments introduced by Directive (EU) 2026/470 (Omnibus I Directive) to the Accounting Directive and the Corporate Sustainability Reporting Directive (CSRD – Directive (EU) 2022/2464) framework.

The Regulation establishes a voluntary sustainability reporting standard for undertakings not subject to mandatory sustainability reporting under Articles 19a and 29a of the Accounting Directive. It also establishes the reference level for the value chain cap, which limits the sustainability information that mandatory reporting undertakings may request, for sustainability reporting purposes, from undertakings in their value chain with no more than 1,000 employees.

WHAT'S NEW?

Voluntary sustainability reporting standard

The Regulation establishes a Voluntary Standard, set out in Annex I, based on the VSME standard and aligned with the revised ESRS. It maintains two modules:

• Basic Module: general information and core environmental, social and governance disclosures, including GHG emissions, pollution, biodiversity, water, circular economy, workforce and corruption and bribery.
• Comprehensive Module: additional disclosures covering strategy, climate transition and risks, workforce and human rights, certain revenues and governance diversity.

Value chain cap

The Regulation defines the value chain cap as the maximum sustainability information that mandatory reporting undertakings may request from protected value-chain undertakings for Accounting Directive reporting purposes. The cap comprises only the essential datapoints listed in Annex II and distinguishes between undertakings with more than 10 employees and those with 10 employees or fewer, for which certain datapoints are voluntary. It does not apply to information requests arising from other Union or national legal obligations.

Assurance and financial institutions

Undertakings applying the Voluntary Standard are not required to obtain assurance over the reported information. Financial institutions, financial market participants, insurers and credit institutions are also encouraged to limit sustainability information requests from undertakings with 1,000 employees or fewer, for purposes beyond Accounting Directive reporting, to the information specified in Annex I.

WHAT'S NEXT?

The Regulation will enter into force on the third day following its publication in the Official Journal of the European Union. From that date, undertakings outside the mandatory sustainability reporting scope may use the voluntary standard.

The value chain cap under Article 3 will apply to financial years beginning on or after 1 January 2027. From the Regulation's entry into force, Commission Recommendation (EU) 2025/1710 will be considered as no longer producing legal effects.

BACKGROUND

On 23 July 2026, the European Commission published Commission Delegated Regulation (EU) 2026/825 supplementing Directive 2014/65/EU (MiFID II) with regulatory technical standards on the establishment and assessment of order execution policies. The Regulation specifies the criteria investment firms must apply when selecting execution venues, routing client orders, monitoring execution quality and assessing the effectiveness of their order execution policies. It applies to investment firms executing client orders, including firms dealing on own account when executing client orders, and reflects amendments introduced by Directive (EU) 2024/790 to the MiFID II execution framework.

WHAT'S NEW?

Order execution policies and venue selection

Investment firms must document governance arrangements for selecting execution venues and maintain an internal list containing information on each venue, including approved financial instrument classes, transaction types and client categories. Venue selection must consider factors such as price, costs, order size, order frequency and available order types, supported by reliable reference data, including consolidated tape data where available.

Order routing and client instructions

Firms must specify the criteria and relative importance used to route orders where several execution venues are available. Automatic order routing systems must incorporate those criteria. Policies must also explain the treatment of specific client instructions, including that only the instructed part of an order is excluded from the ordinary best execution process.

Monitoring and assessment

The Regulation strengthens monitoring of execution quality through predefined thresholds and reference data. Investment firms must:

• assess execution quality for granular classes and, where necessary, subclasses of financial instruments;
• review the effectiveness of their execution policy at least annually and following material changes or identified deficiencies;
• periodically compare alternative venues where only one execution venue is selected; and
• correct identified deficiencies within a reasonable period.

For orders executed by dealing on own account, firms must address conflicts of interest and assess price fairness using market prices, comparable instruments or, where necessary, internal pricing models.

WHAT'S NEXT?

The Regulation entered into force on the 20th day following its publication in the Official Journal of the European Union. It will apply from 12 February 2028.

From that date, Delegated Regulations (EU) 2017/575 and (EU) 2017/576 will be repealed.

On 7 July 2026, the European Securities and Markets Authority (ESMA) published a Supervisory Briefing on Triangular Passporting under MiFID II, which aims to promote common supervisory approaches and practices among National Competent Authorities (NCAs) and provide supervisory expectations for firms engaging in triangular passporting arrangements.

The briefing addresses the practice of “triangular passporting”, whereby an investment firm authorised in one Member State uses a branch or tied agent established in a second Member State under the freedom of establishment to provide investment services into a third Member State under the freedom to provide services. ESMA notes that this business model may create challenges relating to supervisory responsibilities, firms’ compliance obligations and investor protection.

The document clarifies ESMA’s and NCAs’ common understanding of the MiFID II framework and sets out supervisory expectations covering firms’ responsibilities, supervisory competences, information provided to clients and access to dispute resolution mechanisms and investor compensation schemes. ESMA expects firms relying on triangular passporting to:

• notify competent authorities appropriately,
• conduct risk assessments relating to the model,
• monitor tied agents effectively and
• ensure that the arrangement is not used to circumvent supervisory requirements or engage in regulatory arbitrage.

The briefing also contains expectations regarding transparency towards clients, including informing clients about the entity providing services, the competent supervisory authority and available complaint-handling and redress mechanisms. Firms are expected to ensure that clients have clear access to complaint procedures and relevant information irrespective of the cross-border structure used.

For NCAs, ESMA outlines expectations regarding passport notifications, cooperation between authorities and the allocation of supervisory responsibilities. The briefing emphasises cooperation and information exchange among competent authorities to support effective supervision of cross-border activities. ESMA states that the briefing is intended to foster supervisory convergence and investor protection while clarifying the application of existing MiFID II requirements. The document does not create new legal obligations and is non-binding.

BACKGROUND

On 6 July 2026, the European Commission adopted a Commission Delegated Regulation amending Commission Delegated Regulation (EU) 2018/1229 on regulatory technical standards for settlement discipline under Regulation (EU) No 909/2014 on central securities depositories (CSDR). The amendments follow the CSDR Refit, Regulation (EU) 2023/2845, and support the forthcoming shortening of the EU securities settlement cycle from T+2 to T+1 from 11 October 2027 under Regulation (EU) 2025/2075.

The Regulation is based on draft regulatory technical standards submitted by the European Securities and Markets Authority (ESMA) on 13 October 2025. It introduces measures aimed at increasing settlement efficiency, preventing and addressing settlement fails, and supporting the operational changes required for T+1 settlement. The requirements concern central securities depositories (CSDs), CSD participants, investment firms and their professional and retail clients.

WHAT'S NEW?

Allocation, confirmation and settlement instructions

The Regulation strengthens requirements for pre-settlement processes and standardisation. Professional clients must transmit allocations and confirmations electronically in a standardised, machine-readable format using international open communication procedures and standards. Relevant allocations and confirmations must be received by investment firms by 23:00 CET on trade date, while retail clients must provide settlement information by the same deadline. CSD participants must send settlement instructions as soon as possible and, where feasible, by 23:59 CET on trade date.

Settlement functionalities

The Regulation introduces or strengthens several CSD functionalities:

• CSDs must offer automatic partial settlement, unless a participant opts out.
• CSDs must offer real-time gross settlement, at least three settlement batches per business day, or a combination of both.
• CSDs must facilitate access to intra-day cash credit secured by collateral through automated collateralisation.
• Settlement instructions must include the place of trading and expanded transaction-type information, including buy-sell back and sell-buy back transactions.

Settlement fail monitoring and reporting

CSD participants with a significant impact on settlement systems must report the main reasons for settlement fails and measures taken to address them. CSDs must report settlement fail information monthly by the fifth business day of the following month, in a standardised electronic format, and monitor measures intended to improve settlement efficiency. Annexes I and III are expanded, while the existing Annex II is deleted.

WHAT'S NEXT?

The Regulation will enter into force on the 20th day following its publication in the Official Journal of the European Union.

Most provisions will apply from 7 December 2026. Certain settlement-fail monitoring, reporting and trading-place identification requirements will apply from 1 July 2027, while provisions concerning settlement instruction timing, hold and release mechanisms, auto-partial settlement, settlement batches, automated collateralisation and partial settlement will apply from 11 October 2027, coinciding with the EU transition to T+1 settlement.

On 20 July 2026, ESMA published a Statement on Preparing for the EU T+1 Settlement Cycle which sets out key deadlines, regulatory expectations, and implementation priorities for market participants ahead of the EU's transition to a T+1 securities settlement cycle on 11 October 2027.

The statement highlights that the EU financial markets will move from a T+2 to a T+1 settlement cycle on 11 October 2027, requiring market participants to accelerate preparations during 2026 and 2027. ESMA notes that readiness surveys conducted by the EU T+1 Industry Committee indicate increasing awareness and commitment across the industry, although implementation progress remains uneven across sectors, firms, and markets.

ESMA emphasises that the legal and regulatory framework supporting the transition has been known since October 2025 and references amendments to the settlement discipline RTS that have been endorsed by the European Commission and are undergoing scrutiny by the European Parliament and Council. Firms are encouraged to consider these requirements alongside the recommendations issued by the EU T+1 Industry Committee.

The statement identifies two key compliance milestones.

The first deadline is 7 December 2026, when requirements relating to the exchange of allocations and confirmations become applicable, including stricter timing expectations and the default use of international communication standards.

The second and final deadline is 11 October 2027, when requirements aimed at optimising the settlement layer become applicable, including the timely submission of settlement instructions and broader use of functionalities such as auto-partial settlement, hold and release, and auto-collateralisation.

ESMA further explains that automation, standardisation, and data quality improvements are key enablers of successful implementation. Firms are encouraged to review trading and settlement processes, assess dependencies across their operational ecosystem, and begin testing as early as possible. The statement warns that insufficient preparedness may create operational, reputational, and settlement risks, potentially affecting market participants' ability to meet client expectations and settlement deadlines.

On 20 July 2026, the European Securities and Markets Authority (ESMA) published its Follow-up Report to the Peer Review on the supervision of cross-border activities of investment firms, which assesses the actions taken by six National Competent Authorities (AFM, BaFin, CNB, CSSF, CySEC and MFSA) to address recommendations issued following ESMA's 2022 peer review on cross-border supervision of investment services.

The report evaluates improvements in four key supervisory areas: authorisations, ongoing supervision, cooperation among authorities, and enforcement and sanctioning. ESMA notes that cross-border provision of investment services to retail clients continues to increase in scale and complexity, with more than 10.5 million retail clients receiving cross-border investment services across the EU/EEA in 2024.

Regarding authorisations, ESMA finds that several NCAs have introduced more structured assessments of firms' cross-border business models, governance arrangements, internal controls, language capabilities and risk management processes. Improvements were particularly noted in the Czech Republic, Germany, Luxembourg and Cyprus.

For ongoing supervision, ESMA highlights enhanced collection and use of cross-border data, the integration of cross-border risk indicators into supervisory frameworks, and more targeted monitoring of firms providing services across Member States. Several authorities have introduced dedicated monitoring activities, risk-scoring methodologies and supervisory tools designed to identify cross-border risks more effectively.

The report also identifies improvements in cooperation among national authorities, particularly regarding information exchange and handling of supervisory requests. In the area of enforcement, ESMA notes increased use of supervisory and enforcement measures by some authorities but indicates that further efforts remain necessary in certain jurisdictions.

ESMA concludes that the peer review has positively influenced supervisory convergence across the EU by strengthening the oversight of cross-border investment services. However, given the continued growth of cross-border business models and increasing digitalisation, ESMA emphasises the need for national supervisors to continue enhancing supervisory resources, monitoring activities and enforcement practices to ensure adequate investor protection and effective functioning of the EU Single Market.

On 28 July 2026, the Official Journal of the European Union published Commission Delegated Regulation (EU) 2026/871, which supplements Regulation (EU) 2024/3005 on the transparency and integrity of ESG rating activities by specifying the elements that ESG rating providers must disclose to the public, users of ESG ratings, rated entities, and issuers of rated items.

The Delegated Regulation establishes detailed regulatory technical standards (RTS) concerning disclosure obligations applicable to ESG rating products. It aims to enhance transparency, facilitate due diligence, and improve comparability across ESG rating products by introducing harmonised disclosure requirements. The Regulation requires ESG rating providers to disclose comprehensive information for each ESG rating product, including methodologies, models, key assumptions, data quality measures, materiality approaches, factors assessed under environmental, social and governance dimensions, and the treatment of international agreements such as the Paris Agreement where relevant.

The Regulation also introduces detailed requirements relating to methodological disclosures, including information about rating methodologies, ranking systems, industry classifications, engagement processes with rated entities, methodological updates, and supporting models. ESG rating providers must additionally disclose limitations relating to data availability, completeness, timeliness, accuracy, assumptions, proxies, and estimation techniques.

Organisational disclosures are required regarding ownership structures, fee models, business models, potential conflicts of interest, and links with parent or subsidiary undertakings. Furthermore, ESG rating providers must explain processes for collecting non-public data, revising methodologies, conducting stakeholder consultations where applicable, assessing the impact of methodology changes, and ensuring consistency in data revision procedures.

The Regulation also prescribes the presentation order for disclosures and permits cross-references to relevant information available on providers’ websites. The measure is based on draft RTS developed by ESMA following public consultation. The Regulation entered into force on the twentieth day following publication in the Official Journal and applies from 2 July 2026, aligning with the application date of the underlying ESG Ratings Regulation.

On 28 July 2026, the Official Journal of the European Union published Commission Delegated Regulation (EU) 2026/872, which supplements Regulation (EU) 2024/3005 on the transparency and integrity of ESG rating activities by specifying the measures and safeguards that ESG rating providers must implement to separate their ESG rating activities from other business activities.

The Delegated Regulation establishes organisational, operational and governance requirements intended to prevent conflicts of interest where ESG rating providers also perform other regulated activities. ESG rating providers must implement decision-making procedures, reporting lines, organisational structures and responsibility allocations ensuring that employees directly involved in ESG rating assessments are not involved in other activities referred to in Article 16(1) of Regulation (EU) 2024/3005. They must also introduce physical separation measures and require annual self-declarations from relevant staff confirming they are not engaged in incompatible activities.

Where ESG rating providers engage in investment services, credit institution activities or insurance/reinsurance activities covered by Article 16(1), they must implement additional safeguards including role-based access controls, information-security controls, confidential information policies, employee training, contractual requirements and compliance monitoring activities. The adequacy of these safeguards must be assessed at least every 24 months, with management bodies overseeing any necessary remedial actions.

The Regulation also introduces additional requirements for ESG rating providers authorised to provide benchmarks. These include measures ensuring remuneration and performance assessments are not influenced by benchmark-related conflicts of interest, preventing mechanistic reliance on benchmark constituents or outputs when producing ESG ratings, and requiring documented assessments of actual or potential conflicts before entering into service contracts with rated entities, issuers or certain investors.

The Regulation is based on draft regulatory technical standards developed by ESMA following public consultation. It enters into force on the twentieth day after publication in the Official Journal and applies from 2 July 2026, aligning with the application date of Regulation (EU) 2024/3005.