European Union: Financial Services

This July 2026 edition of Funds Focus examines critical regulatory developments affecting asset management and investment funds, including new CBI UCITS Regulations, ESMA's risk management supervision initiative, and the EU Retail Investment Strategy updates. The briefing provides fund managers with essential compliance deadlines, regulatory changes, and supervisory actions that will shape the investment funds landscape in the coming months.

Malta's financial services sector has evolved into a sophisticated ecosystem, but what truly distinguishes it from other jurisdictions? The Malta Financial Services Authority's strategic approach to regulation...

Malta's financial regulator has issued two significant circulars that reshape how payment and e-money institutions safeguard client funds and how firms report regulatory data.

The statutory instrument transposing the Capital Requirements Directive (EU) 2024/1619 (“CRD VI”) into Irish law has been published.

The Malta Financial Services Authority has issued comprehensive guidance on artificial intelligence governance for financial firms, establishing clear expectations for board accountability, risk management frameworks, and third-party oversight. As AI adoption accelerates across the sector, regulated entities must now demonstrate robust control mechanisms, model validation processes, and data governance standards that align with both the EU AI Act and prudential requirements.

Jennifer Duffy and Aaron Tangney explore Ireland's growing appeal as a regulatory hub for financial services firms, examining the Central Bank's authorisation process and the critical importance of establishing genuine local substance, robust governance frameworks, and experienced management teams when seeking regulatory approval.

The Regulations transpose Directive (EU) 2023/2673 (DMD II), which creates a new framework for certain financial services contracts concluded at a distance, into Irish law.

In 2025, the FSPO received a record 7,004 complaints, an increase of 13% on 2024. Of these complaints, 6,282 were closed during the year, representing a 6% increase from 2024.

The Central Bank of Ireland has published an updated version of its supervisory approach document, clarifying how it will conduct risk-based supervision of regulated firms following the introduction of a new framework in 2025. The update provides crucial details on the distinction between sectoral supervision and close & continuous supervision, while elaborating on risk identification, prioritisation, and the development of multi-year supervisory strategic plans for each sector.