EU & UK Reg Roundup: 3/10/2026
European Banking Authority
The EBA publishes final Guidelines on proportionate retail diversification methods under the standardised approach for credit risk
13 February 2026
The European Banking Authority (EBA) published final Guidelines on proportionate retail diversification methods under the standardised approach for credit risk. The Guidelines provide a harmonised framework for assessing whether retail portfolios are sufficiently diversified to qualify for preferential retail treatment, while also aiming to ensure a proportionate application for smaller institutions.
The EBA responds to the Commission’s proposed amendments to the draft technical standards on equivalent legal mechanism
26 February 2026
The European Banking Authority (EBA) published its response to the European Commission’s proposed amendments to the draft technical standards on equivalent legal mechanism for unfinished residential property exposures. The EBA warned that the proposed changes could weaken prudential safeguards and reduce incentives for appropriate completion guarantees, and therefore urged the Commission not to adopt them as proposed.
The EBA publishes final Guidelines on instruments for the capital endowment requirement for third-country branches
2 March 2026
The European Banking Authority (EBA) published final Guidelines specifying the instruments that third-country branches may use to meet the capital endowment requirement under the Capital Requirements Directive (CRD). The Guidelines clarify which financial instruments are eligible and establish operational expectations to ensure those instruments are readily available when needed in resolution or winding-up scenarios. They also confirm that certain government and supranational securities with a 0% risk weight may be used.
The EBA sets out harmonised reporting standards to enhance oversight of third-country branches
5 March 2026
The European Banking Authority (EBA) published final standards establishing a harmonised supervisory reporting framework for third-country branches operating in the EU. The framework introduces standardised templates covering branch-level financial and regulatory information as well as head-undertaking data, and adopts a proportionate approach so that smaller and less complex branches report a reduced data set while larger branches provide additional prudential information.
European Securities and Markets Authority
ESMA publishes statement supporting the smooth implementation of the Listing Act
18 February 2026
The European Securities and Markets Authority (ESMA) published a statement to support the smooth implementation of the Listing Act, giving practical guidance to national competent authorities, issuers and advisers on the revised prospectus framework. The statement aims to help firms navigate the transitional period and reduce unnecessary complexity as the new regime is implemented.
ESMA consults on MAR Guidelines on delay in the disclosure of inside information
19 February 2026
The European Securities and Markets Authority (ESMA) launched a consultation on proposed amendments to its Guidelines on delay in the disclosure of inside information under the Market Abuse Regulation (MAR). The proposals aim to simplify the existing guidance and align it with changes introduced by the Listing Act, including revisions to the examples of legitimate interests that may justify delayed disclosure.
ESMA simplifies MiFID II / MiFIR obligations on market data
23 February 2026
The European Securities and Markets Authority (ESMA) withdrew its guidelines on MiFID II / MiFIR obligations on market data with immediate effect. ESMA said the decision reflects its commitment to simplifying rules and reducing unnecessary compliance burdens, and aligns the framework with the newly applicable RTS on making market data available to the public on a reasonable commercial basis.
ESMA issues a supervisory briefing on algorithmic trading
26 February 2026
The European Securities and Markets Authority (ESMA) issued a supervisory briefing to support consistent supervision of firms engaged in algorithmic trading under MiFID II. The briefing focuses on areas where supervisory practices have diverged, including pre-trade controls, governance arrangements, testing frameworks and outsourcing of algorithmic trading systems.
ESMA publishes the results of the annual transparency calculations for equity and equity-like instruments
26 February 2026
The European Securities and Markets Authority (ESMA) published the results of its annual transparency calculations for equity and equity-like instruments. The results determine liquidity assessments, average daily turnover and the applicable tick-size regime, and will be used by market participants and national competent authorities for the relevant transparency requirements under MiFIR.
Deutsche Bundesbank
Bundesbank: loss for the year more than halved – balance sheet is sound
5 March 2026
The Deutsche Bundesbank reported that its loss for 2025 more than halved compared with the previous year, while emphasising that its balance sheet remains sound. The decline in losses reflects improving profitability, although the Bundesbank noted that the financial burden from past monetary policy measures remains significant and is expected to continue subsiding only gradually.
Bank of England
CP2/26 – Reforms to securitisation requirements
17 February 2026
The Prudential Regulation Authority (PRA) published a consultation paper proposing reforms to the UK securitisation framework. The proposals aim to simplify the regime while maintaining prudential safeguards, including changes to due diligence expectations, risk retention options, and reporting and transparency requirements.
CP3/26 – PRA rule changes to accommodate HM Treasury’s Overseas Prudential Requirements Regime
19 February 2026
The Prudential Regulation Authority (PRA) published a consultation paper proposing amendments to its rules to reflect HM Treasury’s intended Overseas Prudential Requirements Regime. The proposals are designed to restate and modify certain existing CRR equivalence provisions in legislation and clarify the prudential treatment of exposures to institutions in recognised equivalent jurisdictions.
PS5/26 – Credit Union Service Organisations
20 February 2026
The Prudential Regulation Authority (PRA) published a policy statement allowing UK credit unions to invest in Credit Union Service Organisations (CUSOs). The change is intended to support greater operational efficiency and collaboration in the credit union sector, while also introducing safeguards around permitted activities and supervisory expectations.
CP4/26 – UK Solvency II Own Funds: Updates and fixes to rules and expectations
25 February 2026
The Prudential Regulation Authority (PRA) published a consultation paper proposing targeted updates and fixes to the UK Solvency II Own Funds framework. The proposals include restating remaining relevant EIOPA guidelines into PRA supervisory statements and making targeted changes intended to improve clarity and consistency in the UK own funds regime.
Prudential Regulation Authority statement on the life insurance stress test in 2028
27 February 2026
The Prudential Regulation Authority (PRA) confirmed that it remains committed to regular life insurance stress testing and plans to launch the next life insurance stress test in 2028. The statement indicates that the PRA will continue to use stress testing as part of its ongoing supervision of the life insurance sector.
HM Treasury
Consultation: The Appointed Representatives Regime
12 February 2026
HM Treasury launched a consultation on proposed changes to the legislative framework for Appointed Representatives. The consultation seeks views on reforms intended to strengthen oversight of the regime and improve the regulatory framework governing unauthorised firms acting on behalf of authorised principals.
Money Laundering Advisory Notice: High Risk Third Countries
26 February 2026
HM Treasury updated its Money Laundering Advisory Notice on high-risk third countries following the February 2026 FATF updates. The notice reminds firms in the UK regulated sector that they must apply enhanced customer due diligence in relation to jurisdictions identified as presenting elevated money laundering and terrorist financing risks.
HM Treasury Market Engagement Group
9 March 2026
HM Treasury published the terms of reference for its new Market Engagement Group, a senior-level forum for financial market participants to share views on UK-related developments in financial markets, including gilts and sterling, with the Chancellor. The paper also sets out membership criteria and the application process for participants.