On 16 March 2026, the Anti-Money Laundering Authority (AMLA) launched data collection exercise to test risk assessment models.

The reporting package for its data collection and testing exercise aims to validate and calibrate AMLA’s developing risk assessment models. These models will support two forthcoming activities:
(i) the 2027 selection of up to 40 entities for AMLA’s direct supervision starting in 2028, and
(ii) the creation of a consistent EU wide approach to assessing money laundering risks across credit and financial institutions.

Participation in the exercise is limited to entities explicitly notified by their national competent authorities; institutions not contacted are not part of the sample. The reporting package has been developed collaboratively with national supervisors and participating entities, using a draft review round to allow early familiarisation and internal data mapping. The version published on 16 March represents the final reference package for the testing phase and reflects consolidated feedback from supervisors and private sector participants.

AMLA has made available the following guidance:

• Interpretative note,
• Template ("AMLA 2026 Testing and Calibration Exercise")
• Recorded webinar explaining requirements and next steps, and
• Webinar slides.

Participating institutions are required to submit their data by 22 April 2026. According to AMLA, the aim is to obtain high quality risk related data to refine the supervisory selection methodology and to prepare the industry for future, recurring data collections. The exercise will also support AMLA in improving its design of the full data collection process to be conducted ahead of the supervisory selection. For participating firms, the exercise offers an opportunity to test data system readiness and ensure alignment with AMLA’s expectations for upcoming EU wide AML/CFT supervisory practices.

On 12 March 2026, the EC launched consultation on Artificial Intelligence Act – detailed arrangements on evaluations and proceedings.

The draft text clarifies how the Commission will exercise its powers regarding general?purpose AI (GPAI) models, focusing on (i) access and evaluation procedures under Article 92, and (ii) procedural rules for potential fines under Article 101.
The Regulation specifies the technical means through which providers must enable access to GPAI models, including APIs, internal interfaces, source code, model weights, hosting infrastructure, and system?state inspection tools. It also allows the Commission to require removal of logging measures to protect evaluation integrity. Providers must grant access in a timely and effective manner to all elements needed to fulfil evaluation objectives.

Rules for appointing and overseeing independent experts are defined, covering independence criteria (e.g., no shared ownership or contractual links in the past 12 months), confidentiality obligations, and information?security requirements. The selection process is generally open and transparent, with exceptions for experts from the scientific panel.

On enforcement, the draft sets out conditions for opening proceedings, including the ability to take interim measures before proceedings formally begin. It details rights of defence: written observations on preliminary findings, minimum deadlines, document?format requirements, and evidence submission rules. It also establishes a structured framework for access to the file with strict confidentiality protection and controlled disclosure to external counsel.

The draft introduces limitation periods for imposing fines (five years from the conduct, extendable through interruptions) and for enforcing fines (five years from the final decision). It further defines calculation of time periods, deadline extensions, and technical standards for digital transmission, including qualified electronic signatures and rules for valid receipt of documents.

The Consultation closes on 9 April 2026.

On 11 March 2026, the EP published press release on approving of Framework Convention on AI.

EP had approved the EU’s signature of the Council of Europe Framework Convention on Artificial Intelligence, Human Rights, Democracy and the Rule of Law. The document marks the first legally binding international treaty on AI governance, designed to address risks AI poses to fundamental rights and democratic values.

The convention establishes a global baseline for AI governance by embedding principles of transparency, auditability, documentation, risk management and effective oversight. It applies to AI activities conducted by public authorities, as well as private actors acting on their behalf, while private-sector entities must still ensure adequate risk mitigation aligned with the convention’s objectives. The framework reinforces and complements existing EU legislation—including the AI Act, GDPR, non discrimination rules, product safety regimes, liability rules, and sector specific legislation such as political advertising transparency requirements.

While the treaty sets minimum international standards, EU law already imposes stricter and more detailed obligations, particularly via the AI Act, which addresses data governance, cybersecurity, transparency, monitoring, and bans certain high risk or unacceptable AI uses. Co rapporteurs emphasised that the convention reflects the EU’s commitment to fostering AI development that is human-centric, democratic, and aligned with European values of accountability and transparency.

With Parliament’s consent granted (455 votes in favour, 101 against, 74 abstentions), the Council can now formally conclude the agreement. The convention is open not only to EU member states but also globally; current signatories include the UK, Ukraine, Canada, Israel, and the United States. Negotiations began in September 2022 under the Council of Europe’s Committee on AI, involving governments, international partners, industry, civil society, academia, and international organisations.

On 18 March 2026, the European Parliament published press release on the Members of the European Parliament (MEPs) supporting postponement of certain rules on Artificial Intelligence.

The committees voted on the Simplification of the implementation of harmonised rules on artificial intelligence (Digital Omnibus on AI). They support postponing several AIA obligations due to delays in the finalisation of key technical standards. MEPs propose fixed application dates for high?risk AI systems to ensure predictability. For high?risk AI systems explicitly listed in the AIA- covering areas such as biometrics, critical infrastructure, education, employment, essential services, law enforcement, justice, and border management—the proposed application date is 2 December 2027. For AI systems governed by existing EU product?safety legislation, the proposed applicability shifts to 2 August 2028.

MEPs also endorse extending the compliance deadline for providers regarding watermarking of AI?generated content, setting a new date of 2 November 2026. Additionally, the position includes a new ban on “nudifier” systems that generate sexually explicit or intimate images resembling real individuals without consent, except when safety safeguards prevent such misuse.

The proposition voted by the MEPs introduces greater flexibility for companies, permitting the processing of personal data to detect and correct bias in AI systems, subject to strict safeguards. MEPs support extending SME?related support measures to small mid?cap enterprises and reducing overlap between the AIA and sector?specific product?safety rules. Negotiations with the Council may commence once Parliament confirms its mandate in the March 26 plenary vote.

On 3 March 2026, the EC launched consultation on Draft Commission guidance on the Cyber Resilience Act.

The Communication recalls that Regulation (EU) 2024/2847 entered into force on 10 December 2024, with a phased application timeline: Chapter IV applies from 11 June 2026, reporting obligations under Article 14 from 11 September 2026, and the Regulation in full from 11 December 2027. The guidance responds to Article 26, which mandates that the Commission publish guidance—particularly supporting microenterprises and SMEs—to facilitate CRA implementation.

The document stresses the need for timely guidance to allow manufacturers, importers, distributors, and other economic operators to prepare adequately for compliance ahead of the relevant application dates. It highlights procedural aspects: the Commission must first approve the content of the draft Communication, after which the text will be translated into all EU official languages. Only upon completion of translations will the Commission formally adopt the guidance annex, at which point it becomes applicable.

The draft guidance itself is attached as an annex to the Communication and is intended to clarify obligations related to cybersecurity-by-design, conformity assessment, reporting of exploited vulnerabilities and incidents, and lifecycle security requirements. However, the present publication does not expand beyond procedural approval; it states that the operational guidance will apply only after final adoption.

Overall, this publication provides institutional confirmation that the Commission is advancing toward issuing the required CRA guidance, outlining timelines, adoption procedures, and the preparatory role of the document for forthcoming compliance obligations.

The consultation closes on 31 March 2026.

BACKGROUND

On 26 March 2026, the European Parliament adopted, at second reading, a legislative package revising the EU bank crisis management and deposit insurance framework (CMDI). The package consists of amendments to Directive 2014/59/EU (BRRD), Regulation (EU) No 806/2014 (SRMR), and Directive 2014/49/EU (DGSD).

The reforms aim to strengthen the EU framework for managing failing banks, ensuring orderly resolution while protecting financial stability, depositors, and public funds. The review forms part of ongoing efforts to complete the Banking Union and to enhance consistency across Member States in the handling of bank failures. The framework applies to credit institutions, resolution authorities, deposit guarantee schemes (DGS), and other stakeholders involved in bank resolution and insolvency processes across the EU.

WHAT'S NEW?

The adopted package introduces targeted amendments across the BRRD, SRMR, and DGSD frameworks, focusing on scope, depositor protection, and the use of resolution and deposit guarantee tools.

Expanded scope of resolution framework

The revised framework extends the application of resolution tools to a broader range of institutions, including small and medium-sized banks, where resolution is deemed to be in the public interest.

Revised creditor hierarchy and depositor protection

In insolvency and resolution:

• Deposit guarantee schemes are granted the highest priority in the creditor hierarchy.
• Retail depositors and SMEs are ranked immediately after DGS, followed by certain public authorities.
• Additional temporary protection is introduced for specific deposits linked to real estate transactions, exceeding the standard €100,000 threshold.

Enhanced use of DGS funds

The framework clarifies and expands the use of DGS funds:

• DGS resources may be used within resolution, including to contribute to the 8% minimum loss absorption requirement (“bridge the gap” mechanism).
• Member States may allow preventive or alternative use of DGS funds to avoid bank failure or ensure depositor access.

Clarification of loss absorption requirements

Access to external resolution funding remains conditional on shareholders and creditors absorbing losses of at least 8% of total liabilities and own funds (TLOF), with additional flexibility introduced where loss-absorbing capacity is insufficient.

Harmonisation and cross-border consistency

The amendments aim to improve consistency in the application of resolution and deposit protection tools across Member States, including enhanced cross-border cooperation and transparency requirements.

WHAT'S NEXT?

Following the European Parliament’s approval at second reading, the legislative acts will be formally signed and published in the Official Journal of the European Union.

The new rules will enter into force on the twentieth day following publication.

They will apply, with certain exceptions, from 24 months after entry into force.

On 11 March 2026, the EC launched consultation on European Business Wallet: digital identity, secure data exchange and legal notifications for simple, digital business.

The initiative aims to expand the EU Digital Identity Framework—established under Regulation (EU) 910/2014 and amended by Regulation (EU) 2024/1183—to create a secure, interoperable digital identity and authentication solution for economic operators and public administrations across the EU.

The initiative responds to longstanding challenges: fragmented national portals, heterogeneous reporting obligations, paper based or siloed digital processes, and the absence of a harmonised framework for identifying economic operators at EU level. These inefficiencies are described as imposing significant regulatory burdens, especially on SMEs, and constraining cross border operations.

The Business Wallet is intended to:

• provide a universally accepted digital identification and authentication system;
• enable the secure storage, sharing and transmission of business credentials (e.g., licences, permits, certificates, VAT registration);
• serve as an integrated interface for regulatory reporting and official notifications;
• support B2G, B2B and G2G interactions;
• ensure interoperability with the existing European Digital Identity Wallet.

Member States and public administrations would face obligations such as accepting data in compatible formats, communicating through the Wallet’s secure channels, and enabling recognition of digital powers of attorney.

Anticipated impacts include reduced administrative burdens, lower compliance costs, improved efficiency, enhanced cross border competitiveness, and new opportunities for trust service providers. Environmental impact includes reduced paper usage but increased energy requirements for digital infrastructure.

A targeted consultation (March–September 2025) involving corporates, SMEs, industry associations, IT providers, and public authorities will inform the impact assessment update.

The Consultation closes on 6 May 2026.

BACKGROUND

On 12 March 2026, ESMA published its Guidelines on Liquidity Management Tools (LMTs) of UCITS and open-ended AIFs (ESMA34-671404336-1364).

The Guidelines are issued under Article 16 of Regulation (EU) No 1095/2010 (ESMA Regulation) and are based on mandates introduced by Directive (EU) 2024/927 (AIFMD II / UCITS VI), amending Directive 2011/61/EU (AIFMD) and Directive 2009/65/EC (UCITS Directive). They relate specifically to Article 18a of Directive 2009/65/EC and Article 16 of Directive 2011/61/EU, which introduce requirements on the selection, activation and calibration of liquidity management tools. The objective of the Guidelines is to ensure consistent supervisory practices and a harmonised application of LMT requirements across the Union. They apply to competent authorities and fund managers managing UCITS and open-ended AIFs.

WHAT'S NEW?

General framework for LMT selection and governance

The Guidelines clarify that responsibility for liquidity risk management and the selection, calibration and activation of LMTs remains with fund managers. They provide detailed criteria for selecting LMTs, including:

• fund structure, investment strategy and dealing terms;
• liquidity profile of assets and liabilities;
• results of liquidity stress testing;
• investor base and distribution policy.

Managers are required to select at least two LMTs in accordance with Directive (EU) 2024/927 and may select additional tools where appropriate. ESMA indicates that managers should consider combining different types of tools (e.g. quantitative-based tools and anti-dilution tools) and may use LMTs individually or in combination.

Guidance on quantitative-based LMTs

The Guidelines provide detailed conditions for the use and calibration of tools such as:

• Suspensions: to be used only in exceptional circumstances and on a temporary basis;
• Redemption gates: to limit redemption volumes, with calibration based on factors such as NAV frequency, asset liquidity and market conditions;
• Extension of notice periods: to provide additional time for asset liquidation, particularly for less liquid assets;
• Redemptions in kind: subject to considerations on fund structure, investor base and applicable restrictions.

Guidance on anti-dilution tools (ADTs)

ESMA provides detailed guidance on the selection and calibration of ADTs, including:

• redemption fees;
• swing pricing;
• dual pricing;
• anti-dilution levies.

The Guidelines specify that ADTs should reflect both explicit and implicit transaction costs and be calibrated and reviewed regularly to ensure they mitigate dilution and first-mover advantage under both normal and stressed market conditions.

Side pockets

The use of side pockets is addressed, with guidance indicating that they should be activated only in exceptional circumstances, such as valuation uncertainty or illiquidity affecting part of the portfolio. The Guidelines also set out criteria for calibration and monitoring.

WHAT'S NEXT?

The Guidelines apply from the date of application of the RTS referred to in Article 18a(3) of Directive 2009/65/EC and Article 16(2g) of Directive 2011/61/EU.

For funds existing before that date, the Guidelines apply twelve months after the date of application of those RTS.

Competent authorities must notify ESMA within two months of publication whether they comply or intend to comply with the Guidelines.

On 31 March 2026, the ECB published Eurosystem comprehensive strategy for future of European payments.

The strategy responds to rapid digitalisation and the emergence of tokenisation and distributed ledger technology (DLT), and sets out actions across wholesale, B2B, retail and cross border payments.

The document defines four overarching aims: (i) preserving the role of central bank money to ensure monetary policy effectiveness, financial stability and the smooth functioning of payment systems; (ii) strengthening European strategic autonomy and operational resilience; (iii) fostering an integrated, competitive and innovative payments ecosystem; and (iv) supporting the international role of the euro.

To meet these aims, the Eurosystem pursues a dual approach: enhancing existing infrastructures such as T2 and TIPS, including exploring extended operating hours and cross currency settlement, while developing new capabilities for tokenised settlement, notably via the Pontes initiative (DLT compatible central bank money settlement by Q3 2026) and Appia (a multi service utility for tokenised assets).

The strategy emphasises developing a European market for tokenised settlement assets, maintaining central bank money as the anchor while supporting EU governed, euro denominated, properly designed tokenised deposits and stablecoins under MiCAR. It highlights the need for high standards of interoperability, integrity and financial stability.

For B2B payments, the Eurosystem seeks greater standardisation, transparency, automation and closer supply–demand coordination, encouraging enhanced engagement through the ERPB.

For retail payments, priorities include the digital euro, pan European point of interaction solutions, strengthening SEPA (including instant payments and request to pay), operational resilience, fraud mitigation, accessibility and environmental best practices.

For cross border payments, the Eurosystem advances interlinking between TIPS and fast payment systems globally, fostering cheaper, faster and more transparent transactions, aligned with the G20 roadmap.

On 5 March 2026, the EBA published Final Report on draft ITS on the supervisory reporting of third country branches under CRD VI.

The ITS specify reporting requirements arising from CRD VI Article 48k, covering both (i) financial and regulatory information at branch level and (ii) quantitative and qualitative information related to the head undertaking (HU). Two sets of templates are introduced: Annex I, covering assets, liabilities, off balance sheet items, exposures, funding concentrations, internal transactions, capital endowment, liquidity coverage, and deposit protection; and Annex II, covering HU prudential metrics, group level aggregated assets and liabilities, reverse solicitation activities, supervisory assessments, recovery plans, and business strategy. Reporting obligations apply proportionately to Class 1 and Class 2 TCBs through differentiated templates and frequencies.

The framework standardises data collection via a “core + supplement” approach and introduces consistency with accounting definitions. It also implements minimum frequencies: monthly (liquidity), quarterly, semi annual, and annual, depending on template and TCB class. Reporting for HU information generally applies the minimum allowed frequencies, with higher frequencies only for two templates.

Major simplifications introduced after consultation include removal of certain data fields (e.g., originated asset breakdowns), reduced granularity, extended remittance deadlines for Annex II templates, and postponement of the first reporting date to 31 March 2027. Additional clarifications address national accounting year ends, aggregation (not consolidation) of HU data, and practical examples for capital endowment reporting.

Following adoption by the European Commission, the EBA will publish the DPM, XBRL taxonomy and validation rules in draft (Q1 2026) and final form (Q2 2026). The ITS will apply from 28 March 2027, with the first reference date set at 31 March 2027.

On 17 March 2026, the EC launched consultation on Revision of the State aid rules for banks in difficulty.

The initiative, expected to take the form of a Commission Communication in Q2 2027, aims to modernise and streamline the existing rules, which are currently dispersed across six crisis era communications adopted between 2008 and 2013.
The document sets out the political and regulatory context underpinning the review. Since the last revision in 2013, the EU has introduced the Crisis Management and Deposit Insurance (CMDI) framework, encompassing BRRD, SRMR, and
DGSD. The Commission notes that the State aid rules no longer sufficiently align with the CMDI framework, leading to inconsistencies in terminology, scope, burden sharing requirements, and public interest assessments. The 2026 Call for Evidence therefore proposes anchoring the revised rules not only in Article 107(3)(b) TFEU (serious economic disturbance) but also in Article 107(3)(c) TFEU, to allow for application in non crisis periods.

The initiative seeks to:

• consolidate six existing communications into a single, coherent rulebook;
• improve alignment with CMDI by mapping State aid compatibility conditions to CMDI aid scenarios;
• ensure that resolution remains the preferred option when public interest is established;
• avoid duplication of requirements already addressed in CMDI;
• minimise reliance on taxpayer funded national solutions and reinforce incentives for industry funded resolution mechanisms.

Likely impacts include clearer and faster State aid assessments, reduced administrative burden, enhanced transparency, stronger safeguards for taxpayers, and closer integration of resolution principles—particularly loss absorption and burden sharing. Future monitoring will rely on existing transparency obligations for State aid decisions.

On 26 March 2026, the ESMA published Guidelines on stress test scenarios under the MMF Regulation.

The guidelines establishes common reference parameters for mandatory stress tests conducted by money market funds (MMFs) and their managers in accordance with Article 28 of Regulation (EU) 2017/1131. The Guidelines apply to competent authorities, MMFs, and MMF managers, entering into force two months after publication in all EU languages.

The document aims to ensure consistent, uniform and harmonised application of Article 28 by specifying the stress test factors that must be covered: (a) changes in asset liquidity; (b) changes in credit risk, including credit and rating events; (c) movements in interest and FX rates; (d) levels of redemption; (e) widening/narrowing of benchmark spreads; and (f) macro systemic shocks. MMFs must assess impacts both on portfolio valuation/NAV and on liquidity buckets and redemption capacity.

Sections 4.1–4.7 provide detailed methodological expectations for scenario design, covering historical vs. hypothetical scenarios, multi factor combinations, reverse stress testing, and considerations specific to CNAV and LVNAV funds. The Guidelines emphasise combining market shocks with redemption stresses and provide examples in the Appendix.
Section 4.8 introduces mandatory common reference stress test scenarios whose results must be reported under Article 37(4). These include: liquidity shock scenarios with discount factors and price impact parameters; credit spread and concentration stress; interest rate, FX, and benchmark spread shocks; redemption stress tests (reverse liquidity, weekly liquidity, concentration); and combined macro systemic shocks. Each scenario is supported by quantitative calibration tables provided in Section 5. The 2025 calibration reflects ESRB adverse scenarios and is updated annually.

Competent authorities must notify ESMA whether they comply within two months of publication. The Guidelines require no external reporting of stress test results except for the common reference scenarios.

On 12 March 2026, the EU published Decision (EU) 2026/564 of the European Central Bank on delegation of the power to adopt decisions regarding mergers, divisions and acquisitions of material holdings (ECB/2026/5).

The Decision operationalises amendments to Directive 2013/36/EU applicable from 11 January 2026 and aligns supervisory decision-making with the need for efficiency and consistency across the Single Supervisory Mechanism (SSM).

The Decision defines the scope of delegation, specifying that only limited impact transactions—i.e., transactions with constrained effects on own funds, liquidity ratios, and governance—qualify for delegated decision-making. Delegated decisions require that, for three years from the effective date of the operation, the involved significant supervised entities maintain own funds above minimum requirements, combined buffers, and (where relevant) Pillar 2 guidance. Reductions in CET1, Tier 1 and total capital ratios must remain below 100 basis points unless capital surpluses exceed thresholds. Liquidity conditions (LCR and NSFR) must remain above 110% and not fall by more than 50% at consolidated level.

For acquisitions of material holdings, the target must be established in the EU/EEA or a jurisdiction with equivalent supervisory standards. Governance structures must not raise supervisory concerns across all operation types. The Decision also clarifies when delegation cannot be applied, including complex or sensitive cases, interconnected assessments, negative decisions, or matters requiring the non objection procedure.

This Decision supports consistent supervisory outcomes, enables faster processing of low risk transactions, and preserves ECB oversight on sensitive or high impact cases. It entered into force five days after publication.

This Decision enters into force on 17 March 2026.

On 10 March 2026, the EC published draft Delegated Regulation amending Delegated Regulation (EU) 2023/206 to update references and align terminology with recent amendments to the CRR.

The delegated regulation is adopted under Articles 124(11) and 164(8) CRR, as modified by Regulation (EU) 2024/1623, which introduced changes to the prudential treatment of exposures secured by immovable property under both the Standardised Approach (SA) and the Internal Ratings Based (IRB) Approach.

The primary objective is to ensure legal clarity by updating cross references in Delegated Regulation (EU) 2023/206 following the renumbering of CRR Article 124 and the introduction of LGD input floor values in Article 164. The amendments incorporate terminology changes required because minimum LGD values were replaced with LGD input floor values for retail exposures secured by residential and commercial immovable property.

The regulation also updates methodological elements relating to the assessment of risk weights and LGD input floors by national authorities designated under CRR. It revises Article 1 to clarify the calculation of loss experience, referencing updated CRR reporting points (Article 430a). It amends provisions on determining loss expectations, integrating forward looking property market developments over a one to three year horizon and maintaining requirements for prudence where uncertainty exists. It adjusts references to macroprudential measures that authorities must consider when assessing appropriateness of risk weights or LGD input floors.

Further changes include clarifying that authorities may apply the assessment framework to specific property segments or geographic areas, and that alternative national data sources may be used where CRR reporting is insufficiently granular. The delegated act enters into force 20 days after publication in the Official Journal and is directly applicable across all Member States.

On 5 March 2026, the ECB publishes press release on call for payment service providers to participate in digital euro pilot.

The pilot will run for 12 months during the second half of 2027 and aims to test key features of a prospective digital euro within a controlled environment. Its objectives are to validate technical functionality, operational processes and user experience of the beta digital euro, which will have no legal tender status and will be used solely for experimental purposes. The pilot will cover a range of payment scenarios, including person to person (online/offline) and person to business transactions in both physical and e commerce environments, involving staff of Eurosystem central banks and selected merchants located on ECB and national central bank premises.

The pilot will also support refinements to the digital euro’s design, communication and branding, while ensuring transparency and alignment with the ongoing EU legislative process. A final decision to issue a digital euro will only be taken once relevant legislation is adopted.

PSPs selected for participation will act as providers of pilot payment services, support onboarding of pilot users (consumers and merchants), and contribute directly to validating core functionalities. Selection will be based on eligibility criteria and weighted assessments covering regulatory compliance, technical and operational capabilities, market presence, delivery track record and representativeness across the euro area. Participation is not remunerated.

Interested PSPs must apply by 17:00 CEST on 14 May 2026. The ECB has published extensive technical, operational and procedural material and will host outreach sessions, including an online focus session on 20 March 2026, to support applicants.

On 6 March 2026, the EPC launched consultation on interoperability of payment solutions.

The EPC has launched a public consultation to explore the possible role of the EPC in the interoperability of payment solutions based on the SEPA Instant Credit Transfer (SCT Inst) scheme at the Point Of Interaction (POI).
The EPC issued in the second quarter of 2025 a public consultation to explore the options for fostering the use of the SCT Inst scheme at the POI in the context of the growing number of Payment Service Providers (PSPs) adhering to the SCT Inst scheme as a result of the Instant Payments Regulation requirements.

The collected feedback and suggestions were assessed by the EPC and discussed at an EPC-organised workshop in November 2025. This resulted in further input on possible Change Requests to the SCT Inst scheme.

This workshop also led to the conclusion that aspects related to the interoperability of SCT Inst scheme-based payment solutions at the POI, and the possible related role of the EPC in this domain, need further reflection. It was agreed that a second public consultation and potentially a new workshop focusing on these aspects, would be needed.

The Consultation closes on 10 April 2026.

On 2 March 2026, the EC launches consultation on private equity exits.

The European Commission is seeking feedback on obstacles that private equity investors face when exiting their investments and possible ways to address these obstacles. The input will support the Commission’s work under the savings and investments union (SIU), in particular efforts to improve the access to finance for EU startups and scaleups.

Private financing, including from private equity or venture capital funds, plays an important role in supporting young and innovative companies, who often find it difficult to access traditional bank financing. Ensuring that exit opportunities are available, such as through sales of private equity stakes or through initial public offerings (IPOs), is crucial for the availability of capital, as investors depend on realised returns to fund future investments.

Despite past policy efforts, private equity investors in the EU continue to face challenges when seeking to exit their investments. For example, they may not be able to wait for an IPO to realise capital gains, or the lack of a credible valuation of private assets may hinder a transaction. Those difficulties reduce market activity, limiting the availability of growth capital and possibly prompting promising young companies to move outside the EU in search of funding.

Against this background, the Commission is seeking stakeholder views on
1. possible barriers or issues for exiting private equity investments in the EU
2. the merits and possible design features of a platform for secondary trading of private company shares
3. the potential of an extended use of such a platform for raising new equity capital

The consultation is open until 27 April 2026 and targets a broad range of stakeholders, including companies in search of early stage capital and private equity investors.

On 19 March 2026, EBA published its Final report on draft amending RTS on own funds and elegible liabilities.

The document updates the regulatory technical standards (RTS) issued under Articles 77, 78, and 78a of the Capital Requirements Regulation (CRR), following extensive monitoring of supervisory practice and industry feedback.

The report explains that the previous RTS (Commission Delegated Regulation (EU) 2023/827) had extended the prior permission application deadline from three to four months to account for more complex supervisory and resolution assessments. After observing two years of implementation, the EBA concludes that both competent authorities and resolution authorities have gained sufficient experience to reliably complete assessments within a shorter timeframe. As a result, the amended RTS restores the three month minimum application period for ad hoc permissions, new general prior permissions, and renewals of general prior permissions.

The RTS also adjusts cooperation timelines between authorities to ensure that the overall processing period fits within the three month window. The consultation period between competent and resolution authorities is capped at two months, while the resolution authority must communicate its proposed post transaction margin within one month. Correspondingly, the competent authority must respond within two to three weeks.

The report further removes simplified requirements for liquidation entities, which became obsolete following Directive (EU) 2024/1174. That Directive removed the requirement for such entities to obtain resolution authority permission to redeem eligible liabilities where no MREL requirement applies.

The EBA emphasizes that the amendments are limited, targeted, and intended to harmonise supervisory practice while enhancing institutions’ flexibility for capital planning. Stakeholder feedback from the public consultation was fully supportive of the reversion to a three month timeline.

BACKGROUND

On 10 March 2026, the European Commission adopted Commission Implementing Regulation (EU) 2026/519 amending the implementing technical standards laid down in Commission Implementing Regulation (EU) 2021/622 as regards the frequency of reporting and the information to be reported.

The Regulation forms part of the framework established by Directive 2014/59/EU (BRRD) and concerns the reporting of minimum requirement for own funds and eligible liabilities (MREL) decisions by resolution authorities to the European Banking Authority (EBA) under Article 45j(2) of that Directive. It reflects amendments introduced by Directive (EU) 2024/1174, which revised aspects of the MREL framework, including the treatment of liquidation entities and the conditions for setting MREL on a consolidated basis. The objective of the Implementing Regulation is to update the reporting templates, instructions and frequency set out in Implementing Regulation (EU) 2021/622 in order to align them with the revised legislative framework and improve the timeliness of information transmitted to the EBA. The measures apply to resolution authorities reporting MREL decisions for institutions, investment firms and relevant entities within resolution groups.

WHAT'S NEW?

Reporting frequency

The Regulation introduces a change in reporting frequency from annual to bi-annual. Resolution authorities are now required to transmit MREL information to the EBA twice per year:

• for MREL applicable as of 30 June, by 16 September of the same year;
• for MREL applicable as of 31 December, by 18 March of the following year.

This change is intended to improve the alignment between the reporting of MREL decisions under Implementing Regulation (EU) 2021/622 and the data on own funds and eligible liabilities reported under Commission Implementing Regulation (EU) 2021/763.

Alignment with Directive (EU) 2024/1174

The amendments reflect the updated MREL framework introduced by Directive (EU) 2024/1174. In particular:

• the reporting framework is adapted to reflect that MREL should not be set for liquidation entities, except in specific cases provided for in Directive 2014/59/EU;
• the provisions are updated to reflect the expanded situations where MREL may be determined on a consolidated basis.

Article 2 is amended by deleting paragraph 2 and introducing a revised title referring to simplified reporting requirements for institutions subject to waivers. Article 3 is also updated to reflect the revised rules on consolidated MREL reporting.

Updated templates and instructions

Annex I and Annex II to Implementing Regulation (EU) 2021/622 are replaced in full. The updated template M 20.00 and related instructions introduce additional reporting elements, including:

• reporting of MREL decisions for liquidation entities in accordance with Article 45c(2a) of Directive 2014/59/EU;
• a specific field capturing the exercise of discretion under Article 45b(4) of Directive 2014/59/EU, through a “reduced TLOF requirement” column;
• clarifications on reporting scope, consolidation levels, treatment of waivers, and completion of the template.

The instructions also specify that resolution authorities must report the full set of MREL decisions applicable at each reference date.

WHAT'S NEXT?

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

It is binding in its entirety and directly applicable in all Member States.

The amended reporting timetable applies as set out in Article 4, with submissions due by 16 September for MREL applicable as of 30 June and by 18 March of the following year for MREL applicable as of 31 December.

BACKGROUND

On 17 March 2026, the EBA issued an updated list of validation rules under its ITS on supervisory reporting.

The update relates to the supervisory reporting framework developed under Regulation (EU) No 575/2013 (CRR) and Directive 2013/36/EU (CRD). Validation rules form an integral part of the EBA technical reporting packages and are used to ensure the consistency, accuracy, and quality of data reported by institutions to competent authorities. The objective of the publication is to update the applicable validation rules, reflecting corrections, reactivations, and technical adjustments, and to ensure consistency between the reporting taxonomy and the Data Point Model (DPM). The update applies to competent authorities and institutions subject to supervisory reporting requirements.

WHAT'S NEW?

Updated validation rules

The revised package identifies changes to the validation rules used in supervisory reporting. It includes:

• rules deactivated due to inaccuracies or IT-related issues;
• rules reactivated;
• rules with modified severity status.

Competent authorities are reminded that reported data should not be formally validated against rules that have been deactivated.

Technical package updates

The EBA has also released a “small validation rules package” including:

• a micro taxonomy package;
• DPM validation rules update scripts.

From reporting framework release 4.0 onwards, these components are required for each validation rules update exercise.

With the introduction of DPM 2.0 from release 4.0, validation rules are embedded directly within both the taxonomy and the DPM, ensuring consistency between these elements and supporting the implementation of reporting requirements.

Update cycles

Validation rules are updated through different cycles, including:

• new technical package releases;
• updates ahead of reference dates for corrections;
• quarterly small validation rules packages.

These updates apply to framework releases from version 3.0 onwards, with specific requirements from release 4.0.

WHAT'S NEXT?

The updated validation rules apply from their publication on 17 March 2026.

Competent authorities are to reflect the updated status of validation rules in supervisory validation processes, including the non-application of deactivated rules.

Small validation rules packages will continue to be published on a quarterly basis, typically around 20 days before end-of-quarter reference dates.

On 17 March 2026, the EBA launched consultations on regulatory products on Initial Margin Model Authorisation.

The Guidelines (GL) set out:

• Minimum information required in applications for initial authorisation or changes to IM models, including identity data, model characteristics, margin amounts, governance, validation and documentation.
• Criteria for determining what constitutes a “change” requiring re authorisation, such as structural model alterations, extension to new asset classes, or material governance modifications.
• Ad hoc notification obligations, particularly relating to changes in the AANA threshold relevant for supervisory approach.
• Documentation expectations for “Other Counterparties” (OCPs), including internal governance, audit, validation and IT architecture.
• A phased application timeline between 2028–2029 depending on counterparties’ AANA level.

The RTS operationalise supervisory procedures for competent authorities when reviewing IM models, with a detailed methodology covering:

• Qualitative aspects (governance, model development, validation, audit, IT robustness, outsourcing).
• Quantitative aspects (risk factor coverage, calibration, MPOR, non linear dependencies, use of proxies, data quality, completeness of positions).
• Back testing requirements, including green/yellow/red zone thresholds and the Margin Average Shortfall (MAS) indicator as a supervisory prioritisation tool.
• Distinct supervisory processes for pro forma models (e.g., ISDA SIMM) vs. non pro forma models, aligned with the new EMIR 3 framework and the EBA’s central validation role.

Together, the GL and RTS aim to ensure convergence across the EU, avoid duplicative supervisory processes, and promote timely and consistent authorisation of IM models under EMIR 3.

The Consultations closes on 17 June 2026.

BACKGROUND

On 18 March 2026, the European Commission adopted Commission Delegated Regulation (EU) 2026/283 amending the RTS laid down in Commission Delegated Regulation (EU) 2019/815 supplementing Directive 2004/109/EC (Transparency Directive) with regard to the specification of a single electronic reporting format (ESEF).

The Regulation forms part of the ESEF framework applicable to issuers whose securities are admitted to trading on a regulated market. Under Delegated Regulation (EU) 2019/815, issuers must prepare annual financial reports in a structured electronic format, with IFRS consolidated financial statements tagged using a taxonomy based on the IFRS Accounting Taxonomy developed by the IFRS Foundation. The objective of this amendment is to incorporate the 2025 updates to the IFRS Accounting Taxonomy and to reflect developments in XBRL specifications, ensuring consistency and comparability of electronic financial reporting. The measures apply to issuers preparing annual financial reports in accordance with the ESEF requirements.

WHAT'S NEW?

Update of the ESEF taxonomy

The Regulation updates the core taxonomy used under the ESEF RTS to reflect the 2025 IFRS Accounting Taxonomy published by the IFRS Foundation. Although only certain elements are amended, the relevant Annexes are replaced in full to enhance readability and facilitate implementation.

Amendments to tagging requirements and technical specifications

The Regulation introduces updates to the technical framework governing electronic reporting:

• Annexes I, II and VI are replaced to incorporate updated taxonomy elements and mandatory mark-ups aligned with IFRS developments;
• Annex III is amended to require that both the Inline XBRL instance document and the issuer’s extension taxonomy comply with the Calculations 1.1 specification;
• Annex V is updated to ensure consistency with XBRL 2.1, XBRL Dimensions 1.0, Calculations 1.1 specifications and the Reporting Package specification.

Annex II updates the list of mandatory mark-ups, including disclosures aligned with IFRS requirements, covering both numerical and narrative elements in IFRS consolidated financial statements.

Integration of updated XBRL specifications

The amendments incorporate recent developments in Inline XBRL and Reporting Package specifications, supporting consistent validation and processing of electronic financial reports.

WHAT'S NEXT?

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

The amended version of Delegated Regulation (EU) 2019/815 applies to annual financial reports containing financial statements for financial years beginning on or after 1 January 2026.

Issuers may apply the amended requirements to financial years beginning before 1 January 2026.

BACKGROUND

On 26 March 2026, the European Commission adopted Commission Implementing Regulation (EU) 2026/722, amending the implementing technical standards (ITS) laid down in Implementing Regulation (EU) 2024/3172 under Regulation (EU) No 575/2013 (CRR).

The ITS framework under Implementing Regulation (EU) 2024/3172 specifies uniform disclosure requirements for institutions under Part Eight of the CRR (Pillar 3 disclosures). The objective of the amendment is to align the disclosure framework with recent legislative developments, in particular Regulation (EU) 2024/1623, which introduces the centralisation of disclosures through the EBA single access point, and Commission Delegated Regulation (EU) 2025/1496, which postpones the application of market risk own funds requirements.

The Regulation applies primarily to institutions other than small and non-complex institutions, which are subject to centralised disclosure requirements via the EBA platform.

WHAT'S NEW?

The Regulation introduces targeted amendments to the ITS to operationalise the EBA single access point and to reflect revised timelines under CRR III.

Extension of transitional arrangements

The application of transitional provisions is extended until 31 December 2026. In particular:

• Institutions may continue to apply disclosure requirements under Implementing Regulation (EU) 2021/637 during the extended transitional period.
• The repeal of Implementing Regulation (EU) 2021/637 is deferred to 31 December 2026, reflecting the postponement of market risk requirements.

Introduction of standardised submission formats

Institutions are required to submit disclosures to the EBA single access point using harmonised formats:

• A comprehensive report in PDF format, ensuring both human-readable and machine-readable content;
• Quantitative disclosures in XBRL-csv format, aligned with EBA IT specifications.

The submissions must include:

• All required qualitative and quantitative disclosures under CRR;
• The written attestation and key elements of internal policies (Article 431(3) CRR);
• Explanatory information and details on omitted data points.

Centralised publication via the EBA single access point

The EBA will publish submitted disclosures on its website without undue delay. Institutions are automatically notified once their disclosures are made public.

Technical validation and resubmission process

The EBA platform will perform automatic validation checks:

• Non-compliant submissions will be rejected;
• Institutions will be notified of the rejection and required to resubmit corrected information without undue delay.

Transitional flexibility for 2025 reference dates

For disclosures with reference dates in 2025, institutions may temporarily publish disclosures on their own website or another appropriate location where submission to the EBA platform is not technically feasible, with subsequent submission once issues are resolved.

Phased approach for smaller institutions

The centralised disclosure framework currently applies only to institutions other than small and non-complex institutions, with a separate, proportionate approach for smaller institutions under development.

WHAT'S NEXT?

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

The amended ITS will apply from that date, with transitional provisions in place until 31 December 2026.

Implementing Regulation (EU) 2021/637 will be repealed with effect from 31 December 2026, except for limited provisions applicable during the transitional period.

On 17 March 2026, the EC launched consultation on Sustainable investment – review of the EU taxonomy environmental delegated act.

The initiative seeks to review and refine the technical screening criteria (TSC) laid down in the Climate Delegated Act (2021) and Environmental Delegated Act (2023). The Commission’s objective is to address practical implementation challenges reported by companies, financial institutions, auditors, and public authorities. Stakeholders have highlighted issues such as excessive complexity, legal uncertainty, misalignment with updated EU legislation, unclear “do no significant harm” (DNSH) criteria, and difficulties demonstrating compliance. These shortcomings increase administrative burdens, raise compliance risks, and may hinder the effectiveness of the EU sustainable finance framework.

The initiative—planned as two Delegated Regulations to be adopted in Q2 2026—will introduce targeted, proportionate amendments to improve clarity, usability, and alignment of the TSC. The changes may include refinements to definitions, improved evidence requirements, simplification of overly granular provisions, elimination of duplications, and alignment with newer EU legislation. The amendments will not introduce new policy objectives but adjust existing rules based on stakeholder experience.

Expected impacts include reduced reporting burdens for corporates, more reliable and comparable sustainability disclosures from financial market participants, and more consistent application across the EU. The initiative is also expected to support capital flows into environmentally sustainable economic activities without weakening scientific robustness or environmental integrity. Monitoring will rely on stakeholder feedback, periodic reviews mandated by the Taxonomy Regulation, and input from the Platform on Sustainable Finance. Consultations will include a public Call for Evidence, workshops, dialogue sessions, and feedback mechanisms via the Stakeholder Request Mechanism.

On 12 March 2026, the EC published draft Delegated Regulation supplementing Regulation (EU) 2023/2631 for external reviewers under the European Green Bond framework.

The Delegated Regulation establishes detailed criteria to ensure external reviewers operate with appropriate, adequate and effective systems. These criteria cover governance, risk management, information security, human and technical resources, and methodological consistency. External reviewers must maintain systems safeguarding confidentiality, integrity and continuity, deploy sufficient resources, and implement procedures ensuring objective and consistent application of assessment methodologies. The act further specifies requirements for independent monitoring, identification of deficiencies, remediation processes, and management body oversight.

The Regulation also details expectations for compliance functions, including authority, independence, resourcing, expertise and unrestricted access to information, records and premises. Requirements on administrative and accounting procedures include maintaining audit trails and applying applicable accounting standards. Internal control mechanisms must ensure independence, risk management, communication flows and continuous monitoring. ICT safeguards must include regular security assessments, tested redundancy arrangements and prudent third party ICT risk management.

Criteria for assessing information used by external reviewers relate to completeness, relevance, timeliness, accuracy and reasonable assumptions, as well as the reliability of sources. Reliable sources must provide evidence based, credible, well documented information, with preference for legally required disclosures, audited data, certified information or materials aligned with recognised international standards.

The Regulation also sets the required format, structure and content for applications for recognition of third country external reviewers, requiring machine readable information, unique document reference numbers and a senior management attestation. Personal data retention limits for ESMA and applicants are also established. The Delegated Regulation enters into force 20 days after its publication in the Official Journal.

On 24 March 2026, the European Commission launched a consultation on the suspension of the derivatives trading obligation under MiFIR for specific banks.

The draft follows formal requests submitted by the AMF and BaFin for suspension of the derivatives trading obligation (DTO) for BNP Paribas, Société Générale, Crédit Agricole CIB, and Deutsche Bank. The requesting authorities provided evidence demonstrating that these financial institutions act as market makers in OTC derivatives subject to the DTO, regularly receive RFQs for such instruments, and face constraints interacting with certain non EEA counterparties due to non equivalent trading venues—most notably in the United Kingdom following its withdrawal from the EU.

The Commission assesses these conditions under Article 32a MiFIR, confirming that the draft suspension would apply only with respect to UK trading venues. The draft further evaluates the implications for CDS trading, including the requirement that BNP Paribas intends to trade on dealer to dealer venues restricted to CCP clearing members.

The proposal includes supervisory safeguards: competent authorities must monitor compliance with Article 32a conditions, submit updated evidence every five years, and notify the Commission of any breaches. The Commission may revoke the suspension where conditions cease to be met. The draft confirms that the clearing obligation under EMIR remains unaffected by the suspension.

This consultation seeks stakeholder views before finalising the implementing act, which would introduce a targeted mechanism enabling temporary DTO relief for specific institutions in defined non equivalent jurisdictions.

The Consultation closes on 21 April 2026.

On 4 March 2026, EC publishes draft Delegated Regulation (EU) amending Delegated Regulation (EU) 2019/980 as regards the reduced content and the standardised format and sequence of the EU Follow-on prospectus and the EU Growth issuance prospectus.

The delegated act implements mandates under Articles 14a(8) and 15a(8) of the Prospectus Regulation (Regulation (EU) 2017/1129), as amended by the Listing Act (Regulation (EU) 2024/2809). These amendments introduce two new short?form prospectus types designed to reduce disclosure burdens for issuers: (i) the EU Follow?on prospectus for secondary issuances by issuers already listed for at least 18 months, and (ii) the EU Growth issuance prospectus for SMEs, companies listed or to be listed on SME growth markets, and certain smaller public offerings.

The Regulation replaces the outgoing simplified prospectus and EU Growth prospectus regimes, which expire on 5 March 2026. It details the reduced disclosure content, specifying which sections require further clarification beyond Annexes IV–V and VII–VIII of the Prospectus Regulation—particularly those concerning offer details and securities terms. It also defines a standardised structure: mandatory order of information for equity prospectuses and a more flexible structure for non?equity prospectuses, including the possibility of single?document or tripartite formats.

The act introduces specific rules for base prospectuses, establishes retail vs. wholesale disclosure distinctions for non?equity securities, and sets requirements for cross?referencing where standardised sequences are not followed. It also clarifies when overview sections may be labelled as “summary” and how supplemented summaries must be presented.
The Regulation further updates Delegated Regulation (EU) 2019/980 by deleting obsolete references, adding new Annexes (30–35), and integrating European Green Bond factsheet classification into base prospectus rules. It enters into force on the third day following publication in the Official Journal.

BACKGROUND

On 2 March 2026, ESMA published its Final Report on draft RTS on information on clearing fees and associated costs under Article 7c(4) of EMIR.

The report forms part of the EMIR 3 framework, which introduced measures to improve the efficiency and competitiveness of EU clearing markets and, in that context, increased transparency on the fees charged for clearing services. More specifically, Article 7c(2) of EMIR requires clearing members and clients providing clearing services to disclose, in a clear and understandable manner, for each CCP at which they provide clearing services, the fees charged to clients for clearing services, any other fees charged including pass-on costs, and other associated costs related to the provision of clearing services. The purpose of the draft RTS is to further specify the type of information to be disclosed under that provision. The framework applies to CSPs providing clearing services in the Union, whether directly or indirectly, in relation to the relevant CCPs at which those services are provided.

WHAT'S NEW?

The draft RTS specify the scope and content of the fee and cost disclosures that CSPs must provide to existing and prospective clients. ESMA confirms that the disclosure requirement covers each CCP at which clearing services are provided and, in its final approach, this includes both EU CCPs and recognised third-country CCPs. Where information available from a Tier 1 third-country CCP is limited, the CSP may disclose only the information available but must explain the legal or operational reasons for that limitation.

The RTS also clarify that disclosures are to be made on a bilateral basis rather than through public disclosure, reflecting the commercial nature of the information. They further provide that, where relevant, fees and costs should be broken down at the level of each clearing service for each CCP.

As regards content, the RTS maintain a structured categorisation of fees. CSPs must associate each fee with the corresponding service provided and, to the extent possible, break down charges into onboarding fees, fixed fees, transaction fees and other fees and costs. Where “other fees and costs” are included, CSPs must explain the expenses they cover. The disclosures must also clearly identify pass-on costs charged to the client that are directly related to the clearing service and charged by the CCP. ESMA amended the draft RTS to allow this requirement to be met by referring to existing public disclosures from the CCP together with a concise description of the costs passed on to clients.

In addition, the RTS require disclosure of discounts, caps and rebates, including the conditions for benefiting from them and the category of fees to which they apply. They also clarify that, where applicable, CSPs may comply with the RTS by referring to existing disclosures under MiFID II or EMIR, provided those disclosures meet the RTS requirements.

WHAT'S NEXT?

The Final Report, including the draft RTS, will be submitted to the European Commission. The Commission has three months to decide whether to adopt the RTS in the form of a Delegated Regulation.

Following adoption by the Commission, the RTS will be subject to the non-objection procedure by the European Parliament and the Council. The Regulation will enter into force on the twentieth day following its publication in the Official Journal of the European Union.

BACKGROUND

On 2 March 2026, ESMA published its Final Report on draft RTS on margin transparency requirements under European Market Infrastructure Regulation, as amended by EMIR 3.

The RTS aim to further specify the transparency obligations relating to initial margin models and margin simulations for central counterparties (CCPs) and clearing service providers (CSPs). These measures form part of the EMIR 3 reform, which enhances margin transparency across the clearing chain to improve visibility and predictability of margin calls.

The framework applies to CCPs, clearing members, CSPs, and their clients, including indirect clients, and focuses on the information to be disclosed and the structure of margin simulation tools and outputs.

WHAT'S NEW?

CCP margin transparency and simulation tools

The RTS introduce detailed requirements on the information CCPs must provide regarding their initial margin models. This includes comprehensive disclosures on model design, methodologies, parameters, governance arrangements, and operational processes related to margin calls. CCPs are also required to describe key assumptions and limitations of their models, including backtesting results and behaviour under stressed market conditions.

In addition, CCPs must provide structured documentation of this information in a clear and comprehensive format. The RTS further define the specifications of CCP margin simulation tools, requiring a breakdown between core margin and portfolio-related add-ons, and a distinction between existing positions and new transactions. Simulation tools must include outputs under current market conditions and at least five stress scenarios, consisting of three hypothetical and two historical scenarios.

CSP margin transparency framework

The RTS establish differentiated requirements depending on the margining approach used by CSPs. Where CSPs pass through CCP margin models without adjustments, they are required primarily to transmit CCP disclosures and provide information on operational arrangements for margin collection.

Where CSPs apply additional margins, they must disclose the rationale, magnitude, and methodology of these adjustments, including the risks covered and review procedures. Where CSPs use proprietary margin models, they must provide detailed information on model design, parameters, limitations, and calculation methodologies, aligned with the level of information required from CCPs.

CSP margin simulations

CSPs are required to provide margin simulations to clients covering current market conditions and a set of stress scenarios. These simulations must include both the margin required by CCPs and any additional margin imposed by the CSP, with a clear breakdown of the different components. The RTS clarify that these simulations are not interactive tools but outputs provided to clients, including at onboarding and upon request.

WHAT'S NEXT?

The Final Report, including the draft RTS, will be submitted to the European Commission. The Commission has three months to decide whether to adopt the RTS in the form of a Delegated Regulation.

Following adoption, the RTS will be subject to the non-objection procedure by the European Parliament and the Council.

The RTS will enter into force after publication in the Official Journal of the European Union, with application determined by the final adopted act.

On 18 March 2026, the EC published Corrigendum to Delegated Regulation (EU) 2026/305 on EMIR Active Account RTS.

The Corrigendum solely amends Annex II, Table 2 of the Delegated Regulation, which outlines the required reporting of activities and risk exposures for firms subject to the active account requirement. The correction replaces the originally published table with an updated version containing revised field names, category labels, and reporting instructions.

The revised table clarifies:

• the definition and calculation of Gross Notional Amount outstanding for the aggregate month-end average position over the previous 12 months for derivatives cleared under Article 7a(6) EMIR;
• the description of the Details to be reported, ensuring explicit reference to Commission Delegated Regulation (EU) 2022/1855 regarding minimum data reporting standards;
• corrections to Dimension 1, adjusting derivative category labels (e.g., PLN OTC IRD);
• amendments to Dimension 2, confirming reporting at CCP LEI level and structured breakdown by CCP categories (EU, Tier 2, Tier 1).

No new requirements, obligations, or timelines are introduced. The Corrigendum’s purpose is strictly to correct textual and tabular inconsistencies in the original publication, ensuring accurate interpretation of the RTS for entities subject to EMIR’s active account requirement.

Its impact is therefore limited to improving clarity for firms preparing, validating, and submitting EMIR related reports, particularly those operating active accounts for clearing services.

On 12 March 2026, the EU published Decision (EU) 2026/565 of the European Central Bank nominating heads of work units to adopt delegated decisions regarding mergers, divisions and acquisitions of material holdings (ECB/2026/6).

The Decision is adopted pursuant to amendments to Directive 2013/36/EU introduced by Directive (EU) 2024/1619, which expanded supervisory powers concerning material operations of credit institutions. It complements the ECB’s broader delegation framework set out in Decision (EU) 2026/564 (ECB/2026/5) and Decision (EU) 2017/933, enabling the ECB to manage the considerable volume of supervisory decisions through structured internal delegation.

The document defines which ECB senior staff members—across SSM Governance and Operations, Systemic and International Banks, Universal and Diversified Institutions, and Specialised Institutions and Less Significant Institutions—are empowered to adopt delegated supervisory decisions. Specific governance structures are set for:

• Mergers and divisions (Articles 4–5 of Decision 2026/564): decisions require joint adoption by senior officials in SSM Governance and Operations and the relevant supervisory directorates, depending on the supervised entity’s allocation.
• Acquisitions of material holdings (Article 6 of Decision 2026/564): decisions may require adoption by the relevant supervisory directorate alone, or jointly with SSM Governance and Operations when involving qualifying holdings under Article 22(1) CRD.

Where multiple significant supervised entities are involved, the Decision specifies how the “relevant” entity is determined for each operation.

The Decision enters into force on 17 March 2026. Overall, it operationalises the ECB’s ability to issue timely and consistent supervisory decisions on structural operations affecting significant supervised entities, ensuring alignment with newly effective CRD provisions as of 11 January 2026.

On 5 March 2026, the Council of the EU gave its final green light to 2040 climate target.

The Council formally adopted the amended European climate law, introducing a binding intermediate climate target, for 2040, of a 90% reduction in net greenhouse gas (GHG) emissions compared to 1990 levels. This new target strengthens the EU’s path towards achieving climate neutrality by 2050 across all sectors of the economy.

From 2036 onwards, high-quality international credits may be used up to a limit of 5% of 1990 EU net emissions to make an adequate contribution towards the 2040 target in a way that is both ambitious and cost-efficient. This means that at least 85% of emissions reductions must be achieved within the EU. Credits must be based on credible activities of GHG reduction in partner countries, in line with the Paris agreement.

The amended climate law sets out further key elements the Commission must consider when preparing its legislative proposals for the post 2030 period, with a focus on competitiveness, simplification, social fairness, energy security and affordability, alongside other priorities. Among these elements are:

• EU-based permanent carbon removals (processes that involve capturing carbon dioxide from the atmosphere and storing it durably) to compensate for residual hard-to-abate emissions under the EU emissions trading system
• enhanced flexibility within and across sectors and instruments, to support the achievement of targets in a simple and cost-effective way.

The amended climate law also shifts the date for the EU emissions trading system for road transport, buildings and other sectors (ETS2) to become fully operational by one year, moving it from 2027 to 2028.

On 31 March 2026, the ESMA published ESAs Joint Guidelines on ESG stress testing.

These Guidelines clarify how competent authorities should incorporate consistency, long term considerations, and common methodological standards into ESG stress testing, pursuant to Article 100(4) CRD and Article 304c(3) Solvency II.

The Guidelines define the scope as covering all supervisory ESG stress tests—either regulatory or ad hoc—applied proportionately according to sectoral legislation. Competent authorities must perform a materiality assessment to identify the most relevant ESG risks based on business models, exposures, geographies, and sectoral activities. ESG risks must be considered across short term (up to five years) and long term (minimum ten years) horizons, covering both physical and transition risks. The Guidelines require a gradual expansion from environmental to broader ESG factors.

Methodological requirements include guidance on scenario design (including compound shocks and second round effects), time horizons, choice between top down, bottom up, or hybrid approaches, and required levels of granularity (portfolio, sector, geography, counterparty, and risk categories). Authorities should initially apply static balance sheets but may adopt dynamic approaches for longer horizons, incorporating credible transition plan assumptions.

The Guidelines also address organisational and governance requirements: resource allocation, data management, QA processes, communication with financial institutions, cross border coordination, and integration of results into broader supervisory processes. Publication of results should follow sectoral regulations and reflect methodological robustness.

Competent authorities must notify compliance by 31 May 2026, and the Guidelines apply from 1 January 2027.