EU, UK & CA Reg Roundup 10/09/26

European Banking Authority

The EBA consults on draft technical standards on institutions’ operational risk management

26 August 2026

The European Banking Authority (EBA) has launched a consultation on draft Regulatory Technical Standards (RTS) specifying the operational risk management framework institutions must maintain under Article 323 of the Capital Requirements Regulation (CRR), as amended by CRR3.

The proposals set out harmonised and proportionate requirements covering three key areas:

1. governance arrangements;
2. the operational risk management process; and
3. the operational risk assessment system.

The draft RTS clarify the responsibilities of management bodies, senior management and independent operational risk management functions. They also establish requirements for operational risk data and taxonomy, the business indicator component, reporting, validation and audit. ICT risk requirements are addressed through the Digital Operational Resilience Act (DORA).

Proportionality is a key feature of the proposals. Institutions with a business indicator below EUR 750 million would benefit from less frequent reviews and reporting, alongside simplified requirements concerning data granularity, loss thresholds and operational risk taxonomy.

The consultation is open until 31 December 2026. A virtual public hearing will take place on 29 September 2026, with registration closing on 25 September 2026. Following the consultation, the EBA will finalise the draft RTS and submit them to the European Commission for adoption.

Please find the whole consultation here.

Bank of England

Andrew Bailey emphasises regulatory independence and accountability in safeguarding financial stability

4 September 2026

Bank of England Governor Andrew Bailey delivered a speech at the LSE TRIUM Anniversary Conference examining central bank independence, including its importance for financial regulation and financial stability.

The speech highlighted two major themes relevant to banking regulation:

1. Independence from industry and political pressure: Bailey argued that central banks must avoid becoming aligned with particular financial sectors or political movements. Protecting financial stability can require resisting pressure from concentrated financial interests, including calls arguing that regulation has gone too far.
2. The distributional effects of regulation: Bailey acknowledged that financial stability policies can affect institutions and sectors differently. He stressed that their purpose is not to favour particular groups, but to safeguard stable money and a resilient financial system for society as a whole.

Please find the whole speech here.

Office of the Superintendent of Financial Institutions

OSFI updates its policy release schedule

3 September 2026

The Office of the Superintendent of Financial Institutions (OSFI) has published a letter to federally regulated financial institutions outlining changes to its planned policy releases and announcements, as set out in its spring Annual Risk Outlook.

The revised schedule covers three quarterly releases:

1. 10 September 2026: The draft Guideline B-6 Liquidity Principles is deferred to February 2027, while the final Pillar 3 Disclosures for Interest Rate Risk is deferred to November 2026.
2. 19 November 2026: OSFI plans to publish the final Pillar 3 Disclosures for Interest Rate Risk, the final Guideline B-2 Large Exposure Limits for Property and Casualty and Life and Fraternal insurers, and the Credit Risk Management “What We Heard” consultation report. The draft chapters of the Credit Risk Management Guideline are deferred to February 2027.
3. 12 February 2027: OSFI plans to publish the draft chapters of the Credit Risk Management Guideline and the draft Guideline B-6 Liquidity Principles.

OSFI notes that publication timelines and planned releases remain subject to change in response to developments in financial institutions’ risk and operating environment. Updates will be reflected in its policy releases and announcements schedule.

Please find the whole letter here.