EU & UK Reg Roundup: 26/11/2025
European Banking Authority
The European Supervisory Authorities designate critical ICT third-party providers under the Digital Operational Resilience Act
18 November 2025
The ESAs (EBA, EIOPA, ESMA) have published the first list of critical ICT third-party providers (CTPPs) under DORA—an important milestone for launching the new EU oversight framework. Using data from financial entities’ ICT registers and a detailed criticality assessment with national supervisors, the ESAs identified providers whose services are systemically important and difficult to substitute. These designated CTPPs will now fall under direct ESA oversight to ensure strong ICT risk management and operational resilience across the EU financial sector.
The EBA consults on Guidelines on authorisation of third country branches under the Capital Requirements Directive
12 November 2025
The EBA has opened a consultation on new Guidelines to strengthen the supervisory independence of competent authorities under the CRD. The draft Guidelines clarify rules on appointing members of management bodies, how to calculate the 14-year term limit, and the internal arrangements authorities must have to prevent and manage conflicts of interest (e.g., declarations of interest, trading restrictions, disposal rules, and cooling-off periods). The consultation is open until 23 January 2026.The EBA consults on Guidelines on supervisory independence
The EBA calls on financial and non-financial counterparties using an initial margin model based on ISDA SIMM to seek authorisation through their competent authorities
07 November 2025
The EBA has launched a data collection to identify all EU counterparties that must seek validation for their use of ISDA SIMM-based initial margin models. Any financial or non-financial counterparty using ISDA SIMM—directly or indirectly—must apply for model authorisation via its competent authority, in line with EMIR and the EBA’s existing no-action letter.
Competent authorities have made progress in their approaches to the supervision of CVA risk
06 November 2025
The EBA published a follow-up Peer Review Report on the exclusion from the credit valuation adjustment (CVA) risk of transactions with non-financial counterparties established in a third country. This follow-up Review found that competent authorities continue to largely assess CVA risk sufficiently, using different approaches which are fit for purpose in satisfying the regulatory requirements and the Supervisory Review and Evaluation Process (SREP) Guidelines. Furthermore, since the 2023 Report, all competent authorities have made some progress in strengthening their CVA risk assessments and addressing the follow-up measures suggested as part of that Report.
The EBA publishes its final Guidelines on environmental scenario analysis
05 November 2025
The European Banking Authority (EBA) today published its final Guidelines on environmental scenario analysis, which complement the EBA Guidelines on the management of Environmental, Social and Governance (ESG) risks by specifying supervisory expectations regarding how institutions should conduct environmental scenario analysis. The Guidelines are built around two complementary pillars:
- integration of environmental risks into institutions’ existing stress-testing frameworks
- resilience analysis
Guidelines on environmental scenario analysis
The EBA updates mapping and signposting tools to reflect latest changes in Pillar 3 and supervisory reporting frameworks
04 November 2025
The European Banking Authority (EBA) today released several updates to ensure consistency with the latest regulatory and reporting framework developments. These include an updated Mapping Tool in excelreflecting recent amendments to the Pillar 3 disclosure and supervisory reporting frameworks, as well as a new version of the Signposting Tool in excel incorporating the revised requirements up to Reporting framework v4.0. Additionally, the EBA’s reporting Time Traveller platform has been enhanced to align with the most recent changes in regulatory reporting.
The EBA consults on Guidelines on authorisation of third country branches under the Capital Requirements Directive
03 November 2025
The EBA launched a consultation on new Guidelines for authorising third-country branches (TCBs) under the updated CRD framework. The Guidelines set out the required application information, assessment process, and standard templates, including the need for a non-opposition statement from the home supervisor. They form part of the EU’s new harmonised regime for TCBs covering authorisation, prudential requirements, booking arrangements, governance, and reporting. The consultation runs until 3 February 2026. Consultation Paper on draft Guidelines on authorisation of third country branches
The EBA publishes its final draft technical standards on criteria to assess the materiality of CVA risk exposures arising from securities financing transactions
29 October 2025
The EBA has published final draft Regulatory Technical Standards (RTS) on how banks should assess the materiality of CVA risk from fair-valued securities financing transactions (SFTs).The RTS define when these SFTs can be excluded from CVA capital requirements. Key points:
- A quantitative threshold will be used, based on the ratio showing how much own funds for CVA risk would increase if fair-valued SFTs were included.
- Banks must perform this materiality assessment quarterly, aligned with the regular own-funds reporting cycle.
- Only SFTs assessed as non-material can be exempted from CVA capital requirements.
- These RTS form part of the EBA’s Phase 2 market risk implementation under the EU banking package.
European Securities and Markets Authority
ESMA identifies measures to further enhance depositary supervision
17 November 2025
ESMA published a peer review assessing how National Competent Authorities (NCAs) supervise depositaries, focusing on their responsibilities for oversight and safekeeping of assets under UCITS/AIFMD.Bank of England
CP23/25 – Regulatory fees and levies: policy proposals for 2026/27 – Joint PRA and FCA consultation
21 November 2025
The PRA and FCA published a joint consultation, Chapter 4 of which proposes to update the invoice due dates for firms who pay £50,000 or more in PRA and FCA fees in a year (referred to as ‘payments on account’) to avoid invoices being labelled as overdue due to procedural issues. CP25/33 – Regulatory fees and levies: policy proposals for 2026/27
PS24/25 – Depositor protection
18 November 2025
The PRA has finalised updates to the UK’s depositor protection framework following CP4/25. From 1 December 2025, the FSCS protection limit will increase from £85,000 to ££120,000, and the cap for temporary high balances will rise from £1 million to £1.4 million. Firms must update their disclosures by 31 May 2026. The PRA has also updated the Depositor Protection Rulebook, Supervisory Statement 18/15, and the Deposit Guarantee Scheme Statement of Policy. These changes apply to UK banks, building societies, credit unions, relevant overseas firms, the FSCS, and depositors.
Related news: PRA confirms FSCS deposit limit to be increased to £120,000 from 1 December
Life Insurance Stress Test: 2025 Results
17 November 2025
The PRA published the 2025 life insurance stress test (LIST 2025) results. The results indicate that the sector is resilient to a severe financial market stress scenario that impacts insurers’ investment portfolios through a decline in risk-free interest rates, falls in equity and property prices, along with widening spreads and subsequent defaults and downgrades.
PS22/25 – Leverage Ratio: Changes to the retail deposits threshold for application of the requirement
10 November 2025
The PRA has finalised changes to the leverage ratio framework following CP2/25. It is raising the retail deposits threshold for applying the leverage ratio requirement from £50 billion to £75 billion and introducing a three-year average to calculate firms’ retail deposits. The updated rules and supervisory statement apply to CRR firms and groups at all relevant levels of consolidation.
Bank of England launches consultation on regulating systemic stablecoins
10 November 2025
The Bank of England is consulting on a new regulatory regime for systemic stablecoins to ensure they can be used safely in real-world payments. The proposals set clear standards for stability, legal rights, and 1:1 redemption, and would allow issuers to hold some reserves in short-term UK government debt while accessing Bank of England accounts and liquidity support. The aim is to enable stablecoins to operate alongside traditional and tokenised money within a secure, interoperable future payments ecosystem. This consultation closes on 10 February 2026.