EU & UK Reg Round-Up: 16/09/2025

European Banking Authority

EBA issues revised list of ITS validation rules

15 September 2025

The European Banking Authority (EBA) has published an updated list of validation rules under its Implementing Technical Standards (ITS) on supervisory reporting. The update identifies a set of rules that have been deactivated due to either inaccuracies or their potential to trigger IT-related issues. EU Competent Authorities are advised that data submissions in line with the ITS should not be formally validated against these deactivated rules.

Alongside the revised list, the EBA released a validation package that includes:

• a micro taxonomy package, and
• DPM VR deactivation update scripts.

These materials, required from release 4.0 onwards, support the consistent deactivation of rules within both the taxonomy and the Data Point Model (DPM).

The EBA publishes draft amendments to the framework for reporting of MREL decisions by resolution authorities to the EBA

12 September 2025

The EBA has issued final draft ITS amending the framework for resolution authorities’ reporting of MREL decisions. Key changes include:

• Semi-annual reporting (replacing annual submissions).
• Enhanced reporting of discretionary elements used in setting MREL.
• Streamlined data fields to reduce reporting burden.
• Targeted updates aligned with recent legislation, including the Daisy Chain Directive (EU) 2024/1174.

These amendments, developed under the BRRD mandate, aim to improve consistency and convergence in MREL practices across Member States.

The EBA welcomes feedback on its draft technical package and new enhanced DPM 2.0 glossary

05 September 2025

The EBA has published a draft technical package for reporting framework v4.2, marking a key step in the transition to DPM 2.0 and the rollout of a fully enhanced semantic glossary.

Highlights include:

• Completion of the new DPM 2.0 glossary, applied across the entire framework to streamline terminology.
• Draft package v4.2 covering validation rules, DPM, and XBRL taxonomies, with changes to:
• ITS on resolution planning,
• CRR3/CRD6 reporting (COREP operational risk own funds),
• MREL reporting, and
• Supervisory benchmarking for market risk.

The final package will be released in November 2025, incorporating stakeholder feedback. Comments on the draft package and glossary are invited until 19 September 2025.

European Securities and Markets Authority

Updated 2025 IFRS taxonomy introduced into the European Single Electronic Format Electronic reporting

11 September 2025

ESMA has amended the ESEF RTS to integrate the 2025 IFRS taxonomy, which incorporates IFRS 18 (Presentation and Disclosure in Financial Statements) and IFRS 19 (Subsidiaries Without Public Accountability). IFRS 18 will replace IAS 1 from 2027 (with early application allowed), while IFRS 19, though less relevant for listed firms, will support digitalisation for non-listed subsidiaries. The 2025 taxonomy becomes mandatory for financial years starting on or after 1 January 2026, with optional application for 2025 reports if the RTS is adopted in time. Use of IFRS 18/19 elements remains conditional on EU endorsement, expected in early 2026. ESMA will also release an updated ESEF Reporting Manual in 2025 to aid implementation.

The ESAs note greater effort from financial market participants in their disclosure of principal adverse impacts

09 September 2025

The Joint Committee of the European Supervisory Authorities (EBA, EIOPA, and ESMA) published their fourth annual report on voluntary disclosure of principal adverse impacts (PAIs) under the SFDR. The 2025 report notes a steady improvement in both the quality and completeness of PAI disclosures at entity and product level, with larger multinational groups providing more detailed information compared to smaller entities. Analysis included publicly available PAI statements from asset management, insurance, and occupational pension sectors, complemented by surveys of National Competent Authorities. The report also highlights that some market participants have adopted good practices identified in previous years. It includes recommendations for National Competent Authorities to support supervision of PAI disclosures and for the European Commission ahead of the SFDR review.

Heightened geopolitical uncertainties drive risks

09 September 2025

ESMA has published its second 2025 risk monitoring report, noting elevated risks across EU financial markets driven by geopolitical tensions, trade conflicts, and market volatility. The first half of 2025 saw sharp fluctuations in equity and bond markets, widening corporate bond spreads, and high crypto-asset trading volumes, with investor risks exacerbated by political developments and emerging high-risk business models. Asset management sectors showed resilience despite volatility, though leverage and liquidity risks persist, while real-estate funds continued to face outflows. Consumer demand remained strong for bonds, equities, and ETFs, and overall complaints were stable. Operational and cyber risks were heightened, with incidents such as the Iberian Peninsula blackout and T2S outage highlighting vulnerabilities, though without systemic impact. Structural developments include subdued EU IPO activity, stable corporate bond issuance with sustainability concerns, continued growth in ESG and green bonds, and limited but emerging adoption of tokenisation and AI-themed investment funds. ESMA cautions that retail and institutional investors remain exposed to sharp market corrections, operational disruptions, and misinformation risks in this complex environment.

Bank of England

Bank of England launches discussion paper seeking views on measures to enhance gilt repo market resilience

04 September 2025

The Bank of England has released a Discussion Paper exploring potential measures to enhance the resilience of the UK gilt repo market, developed with input from the FCA, HM Treasury, and the UK Debt Management Office. The paper focuses on two main options: greater central clearing of gilt repo to improve dealer balance sheet efficiency and reduce counterparty credit risk, and minimum haircuts or margins on non-centrally cleared transactions to mitigate risks from highly leveraged positions. Additional options, such as enhanced public and private counterparty disclosures, are also under consideration. The Bank is seeking feedback on practical implementation, potential costs, and other measures, with responses requested by 28 November 2025. This initiative aligns with broader international efforts, including SEC reforms in the US and FSB recommendations, to strengthen the resilience of core government bond markets and support financial stability.