EU & UK Reg Round Up: 12/03/2025
European Banking Authority
EBA Updates ITS Validation Rules - 11 March 2025
The European Banking Authority (EBA) has issued a revised list of validation rules in its Implementing Technical Standards (ITS) on supervisory reporting. The update includes deactivated rules due to inaccuracies or IT issues, and competent authorities are advised not to validate submissions against these rules. With the rollout of DPM 2.0 and Architecture 2.0, updates have been made to validation rule files, DPMs, and the taxonomy package. Further details can be found in the release notes of the technical package.
ESAs Acknowledge European Commission’s Amendments to RTS on Subcontracting Under DORA - 7 March 2025
The European Supervisory Authorities (EBA, EIOPA, and ESMA – the ESAs) have issued an Opinion on the European Commission’s (EC) rejection of the draft Regulatory Technical Standard (RTS) on subcontracting under the Digital Operational Resilience Act (DORA). The EC rejected the original draft RTS, stating that certain elements exceeded the ESAs’ mandate under DORA. The ESAs now acknowledge the EC’s assessment and confirm that the proposed amendments align with the legal framework. As a result, the ESAs do not recommend further changes. The ESAs urge the EC to finalize the RTS adoption without further delay.
EBA Launches Consultation on New AML/CFT Rules - 6 March 2025
The European Banking Authority (EBA) has opened a public consultation on four draft Regulatory Technical Standards (RTS) that will play a key role in shaping the EU’s new anti-money laundering and countering the financing of terrorism (AML/CFT) framework. The consultation is open until 6 June 2025. The proposed RTSs cover: Direct supervision by AMLA, ML/TF risk assessments with a harmonized methodology for national supervisors to ensure consistency in evaluating institutions’ risks and controls, customer due diligence with a flexible framework allowing institutions to determine the appropriate level of information collection, and lastly sanctions and enforcement proposing a standardized methodology for assessing AML/CFT breaches and imposing penalties to ensure proportionality and effectiveness across the EU.
EBA Opens Consultation on Data Collection Amendments for 2026 Benchmarking Exercise - 25 February 2025
The European Banking Authority (EBA) has launched a consultation on proposed amendments to the Implementing Regulation for the 2026 benchmarking exercise, covering credit risk, market risk, and IFRS 9 models. The consultation runs until 26 May 2025. Key changes include: an updated market risk framework which introduces new templates for collecting Alternative Internal Model Approach (AIMA) risk measures under the Fundamental Review of the Trading Book (FRTB), and minor changes to credit risk frameworks mainly providing mapping between asset classes used in benchmarking portfolios and updated credit risk IRB templates. These updates align with regulatory updates in the Banking Package (CRR3 and CRD6).
ESAs Outline Roadmap for CTPP Designation Under DORA - 18 February 2025
The European Supervisory Authorities (EBA, EIOPA, and ESMA – the ESAs) are progressing with the implementation of the pan-European oversight framework for Critical ICT Third-Party Service Providers (CTPPs) under the Digital Operational Resilience Act (DORA). The designation process and oversight engagement are set to begin this year.
EBA Finalizes Technical Standards for Centralized Pillar 3 Data Hub - 12 February 2025
The European Banking Authority (EBA) has published its final draft Implementing Technical Standards (ITS) for the Pillar 3 data hub, a central repository for prudential disclosures from large and other institutions. This initiative, part of the Banking Package under CRR3 and CRD6, will enable institutions to submit disclosures through a single electronic access point on the EBA website. The ITS specify the IT solutions, data exchange formats, and technical validation processes that institutions must follow when submitting Pillar 3 disclosures. The EBA will provide additional onboarding details in a communication plan expected by the end of Q1 2025.A transition period from June to December 2025 will allow institutions to adapt to the new framework before full implementation. The EBA has also incorporated feedback from a voluntary pilot exercise, ensuring the final ITS reflect industry input and practical considerations.
European Securities and Markets Authority
ESMA Releases Annual Transparency Calculations for Equity and Equity-Like Instruments - 28 February 2025
The European Securities and Markets Authority (ESMA) has published the annual transparency calculations for equity and equity-like instruments, effective from 7 April 2025. These calculations determine transparency obligations under MiFID II/MiFIR. A total of 1,283 liquid shares and 1,003 liquid equity-like instruments are covered. Market participants should monitor ESMA’s Financial Instruments Transparency System (FITRS) for updates, including calculations for newly traded instruments. The full dataset is available via ESMA’s FITRS XML files and Register web interface.
CSDR Refit: ESMA Publishes First Set of Technical Standards - 20 February 2025
The European Securities and Markets Authority (ESMA) has released a first set of technical standards under the CSDR Refit, aimed at recalibrating and clarifying the regulatory framework for Central Securities Depositories (CSDs). The standards cover information requirements for CSDs in their review and evaluation process by national authorities, the criteria for determining when a CSD’s activities in a host Member State are of substantial importance for securities markets and investor protection, and notification requirements for third-country CSDs operating in the EU.
ESMA Proposes Guidelines on Product Supplements - 18 February 2025
The European Securities and Markets Authority (ESMA) has published a Consultation Paper seeking input on guidelines for product supplements that introduce new types of securities to a base prospectus. The proposed guidelines aim to harmonise supervision across National Competent Authorities (NCAs), addressing divergent regulatory approaches observed in the past. ESMA invites stakeholders to provide feedback as part of the consultation process.
ESMA Consults on Knowledge and Competence Requirements for CASPs Under MiCA - 17 February 2025
The European Securities and Markets Authority (ESMA) has launched a consultation on the knowledge and competence criteria for crypto-asset service providers’ (CASPs) staff who provide information or advice on crypto-assets or related services under the Markets in Crypto-Assets Regulation (MiCA). ESMA is seeking stakeholder feedback on the minimum knowledge and competence requirements for CASP staff, and organisational measures for assessing, maintaining, and updating staff competence. These guidelines aim to ensure that staff advising on crypto-assets meet a minimum standard, strengthening investor protection and trust in the crypto market.
ESMA Launches Common Supervisory Action on Compliance and Internal Audit Functions - 14 February 2025
The European Securities and Markets Authority (ESMA) has launched a Common Supervisory Action (CSA) with National Competent Authorities (NCAs) to assess the compliance and internal audit functions of UCITS management companies and Alternative Investment Fund Managers (AIFMs) across the EU. Throughout 2025, the CSA will evaluate whether firms have established effective internal controls with adequate staffing, authority, knowledge, and expertise, in line with the AIFM and UCITS Directives. Strong compliance and internal audit functions are essential to prevent investor harm and maintain financial stability. The assessment will follow a common framework developed by ESMA, ensuring a consistent supervisory approach. NCAs will share insights throughout the year to enhance regulatory convergence across the EU.
ESMA Consults on Simplified Disclosure for Private Securitisations - 13 February 2025
The European Securities and Markets Authority (ESMA) has launched a consultation on revising disclosure requirements for private securitisations under the Securitisation Regulation (SECR). The proposed simplified disclosure template aims to improve proportionality in reporting while ensuring supervisory authorities retain access to essential data for oversight. The new template introduces aggregate-level reporting and streamlined transaction-specific data requirements, reflecting the operational needs of private securitisations. This follows ESMA’s December 2024 Feedback Statement, where industry stakeholders advocated for short-term solutions and a simplified template.
ESMA Consults on Amendments to Settlement Discipline - 13 February 2025
The European Securities and Markets Authority (ESMA) has launched a consultation on settlement discipline aimed at improving settlement efficiency across various areas. The proposed amendments to technical standards include reduced timeframes for allocations and confirmations, mandatory electronic machine-readable allocations and confirmations based on international standards, and implementation of hold and release & partial settlement by all central securities depositories (CSDs). This consultation aligns with the transition to T+1 settlement in the EU and follows the European Commission’s legislative proposal published on 12 February 2025, as well as ESMA’s Final Report on Shortening the Settlement Cycle.
Bank of England
PRA Proposes Increase in Retail Deposits Leverage Ratio Threshold to £70 Billion - 05 March 2025
The Prudential Regulation Authority (PRA) is consulting on raising the retail deposits threshold for the leverage ratio requirement from £50 billion to £70 billion, reflecting GDP growth since 2016. The leverage ratio is a key measure of financial stability, ensuring firms maintain sufficient capital relative to their activities. Currently, firms exceeding £50 billion in retail deposits or £10 billion in non-UK assets must meet a 3.25% minimum leverage ratio plus buffers. This change aims to maintain oversight of major UK banks, building societies, and investment firms, and provide smaller firms with more room for growth before becoming subject to the leverage ratio requirement. The £10 billion non-UK asset threshold remains unchanged, as it was recently implemented and continues to function as intended.
Bank of England and HM Treasury Complete Five-Year Review of Capital Framework - 13 February 2025
The Bank of England and HM Treasury have completed their five-year review of the Bank’s capital framework, as outlined in their Financial Relationship Memorandum of Understanding (MoU). The review confirmed that the framework, introduced in 2018, remains effective in equipping the Bank with appropriate capital resources to support its monetary and financial stability mandates. It also found that the existing capital parameters are sufficient to sustain the Bank’s balance sheet and that the current financial arrangements with HM Treasury provide adequate support for the Bank’s transition to a demand-driven operating framework backed by repo. The two institutions will continue to monitor these arrangements as the Bank adjusts its balance sheet over the coming years, maintaining close engagement through the governance and information-sharing mechanisms outlined in the MoU, which has been updated accordingly.
Central Bank of Ireland
Central Bank of Ireland Outlines 2025 Regulatory and Supervisory Priorities Amid Global Changes - 28 February 2025
The Central Bank of Ireland has published its Regulatory and Supervisory Outlook for 2025, setting out its priorities against the backdrop of global economic shifts, technological advancements, and increasing complexity in financial markets. The report highlights the rapid transformation of the financial sector, with innovation bringing new opportunities but also new risks that require effective management. Amid heightened market volatility and growing operational risks, the Central Bank is refining its supervisory approach to ensure a more integrated and holistic regulatory framework.