Horizon Scanner Finance January 2026 - European Developments

AMLA - SUPERVISION

AMLA's consultation on draft implementing technical standards (ITS) that set out how AMLA and national financial supervisors will cooperate during the selection process and when transferring supervisory powers for institutions or groups that will be directly supervised by AMLA closes for feedback on 27 January 2026.

Press Release: Press Release: AMLA Takes Major Step in Preparing for Direct Supervision

Consultation Paper: Consultation on the draft ITS on cooperation within the AML/CFT supervisory system for the purposes of direct supervision under Article 15(3) of Regulation (EU) 2024/1620

BENCHMARKS REGULATION (BMR)

Regulation (EU) 2025/914 of the European Parliament and of the Council of 7 May 2025 amending Regulation (EU) 2016/1011 (BMR) as regards the scope of the rules for benchmarks, the use in the Union of benchmarks provided by an administrator located in a third country, and certain reporting requirements entered into force on 8 June 2025 and applies from 1 January 2026.

The amending regulation:

• Pares back the scope of the BMR to cover critical benchmarks, significant benchmarks, certain commodity benchmarks and climate-related benchmarks such as EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks.
• Keeps spot FX benchmarks that meet certain conditions in scope.
• Confirms that the threshold for a benchmark to be categorised as significant will be a total average value of at least €50 billion.
• Allows other benchmarks to be subject to a voluntary supervision regime if they each reach a €20 billion threshold.
• Gives ESMA a supervisory role over administrators endorsing benchmarks provided in a third country.

CAPITAL REQUIREMENTS DIRECTIVE (CRD VI)

Directive (EU) 2024/1619 of the European Parliament and of the Council of 31 May 2024 amending Directive 2013/36/EU as regards supervisory powers, sanctions, third-country branches, and environmental, social and governance risks (CRD VI) entered into force on 9 July 2024. Member States are required to transpose the directive by 10 January 2026. The Irish transposing legislation has yet to be published but is expected imminently.

CAPITAL REQUIREMENTS DIRECTIVE (CRD VI) - ESG RISKS

The EBA's Guidelines on the management of Environmental, Social and Governance (ESG) risks apply from 11 January 2026, except for small and non-complex institutions for which the Guidelines will apply at the latest from 11 January 2027.

The Guidelines specify requirements regarding the internal processes and ESG risk management arrangements that institutions should have in place in accordance with CRD VI. The Guidelines also specify the content of plans to be prepared by institutions with a view to monitoring and addressing the financial risks stemming from ESG factors.

CAPITAL REQUIREMENTS DIRECTIVE (CRD VI) - SUPERVISORY INDEPENDENCE

The EBA's consultation on draft guidelines on supervisory independence of competent authorities closes for feedback on 23 January 2026.

CRD VI amends Directive 2013/36/EU (CRD IV) by introducing new requirements applicable to competent authorities (including their staff members and governance bodies members) in relation to operational or functional independence, personal independence, transparency and accountability, measures to prevent conflicts of interests, and limitations to trading in financial instruments. In the consultation paper, the EBA seeks views on draft guidelines on these requirements.

Press Release: The EBA consults on Guidelines on supervisory independence

Consultation Paper: Consultation paper on draft Guidelines on supervisory independence

CAPITAL REQUIREMENTS DIRECTIVE (CRR) - MARKET RISK

Commission Delegated Regulation (EU) 2024/1085 of 13 March 2024 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards (RTS) on the assessment methodology under which competent authorities verify an institution's compliance with the requirements to use internal models for market risk entered into force on 7 July 2024. Article 21(1), point (b) applies from 1 January 2026.

The delegated regulation sets out the elements that are to be assessed by a competent authority when granting approval to use an internal model approach (IMA) to compute the own funds requirements for market risk. Article 21(1)(b) relates to the assessment of the qualitative requirements for internal risk-measurement models, and requires national competent authorities to verify whether institutions using such models apply direct expected shortfall back-testing approaches in their back-testing programmes. National competent authorities must verify how the institution justifies the choice of the applied direct expected shortfall back-testing methodology, and analyse whether the methodology is conceptually sound.

CAPITAL REQUIREMENTS REGULATION III (CRR III) - FRTB

Commission Delegated Regulation (EU) 2025/1496 of 12 June 2025 amending Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to the date of application of the own funds requirements for market risk, applies from 1 January 2026. The delegated regulation postpones the date of application of the remaining part of the Basel III international standards in the EU – the prudential framework for market risk for banks (also known as the Fundamental Review of the Trading Book (FRTB)) – until 1 January 2027.

The Commission's consultation on the FRTB closed for feedback on 6 January 2026. In light of delays and uncertainties in the implementation of the FRTB by other major jurisdictions, the Commission is considering various policy options to mitigate negative capital effects for EU banks. The proposed policy options in the consultation comprise of two main components. The first focuses on temporarily adjusting areas of the framework where other major countries have already deviated or plan to deviate in their final implementation. The second part introduces a targeted 'multiplier', which is an adjustment factor designed to neutralise the capital impact on banks that might face negative effects from the FRTB rules.

Press Release: Commission seeks input on Basel III market risk rules for banks

Consultation Paper: Consultation document - Targeted consultation on the Application of the market risk prudential framework

CSDR

Regulation (EU) 2023/2845 of the European Parliament and of the Council of 13 December 2023 amending Regulation (EU) No 909/2014 as regards settlement discipline, cross-border provision of services, supervisory cooperation, provision of banking-type ancillary services and requirements for third-country central securities depositories and amending Regulation (EU) No 236/2012 (CSDR) entered into force on 16 January 2024. Certain provisions however only apply from 17 January 2026. Those provisions relate to exemptions from the application of the penalty mechanism for settlement fails, third country central securities depositories (CSDs), deferred net settlement, requirements around authorisation and designation to provide banking-type ancillary services and liquidity requirements.

EMIR 3.0 – PARTICIPATION REQUIREMENTS

ESMA's consultation on draft RTS on participation requirements closed for feedback on 5 January 2026. Under Regulation (EU) 648/2012 of the European Parliament and of the Council of 4 July 2012 (as amended, EMIR), a central counterparty (CCP) is required to establish the categories of admissible clearing members and the admission criteria for participation in a CCP. Non-financial counterparties can be accepted as clearing members if those non-financial counterparties can demonstrate how they intend to fulfil the margin requirements and default fund contributions.

ESMA was required to develop draft RTS specifying the elements to be considered when a CCP: (i) establishes its admission criteria and (ii) assesses the ability of non-financial counterparties acting as clearing members to meet margin requirements and default fund contributions. The consultation sets out ESMA's draft RTS in this respect.

Press Release: ESMA consults on CCP participation requirements

Consultation Paper: Consultation paper on EMIR 3 draft RTS on Participation Requirements

ESAP

The European Single Access Point (ESAP) - the upcoming 'single point of access' platform for public financial, non-financial and sustainability-related information about EU companies and financial products - will become operational in July 2027. Directive (EU) 2023/2864 of the European Parliament and of the Council of 13 December 2023 amending certain Directives as regards the establishment and functioning of the ESAP entered into force on 9 January 2024. Member States are required to transpose the directive by 10 January 2026. The Irish transposing legislation has yet to be published but is expected imminently.

MAR – DESIGNATED TRADING VENUES

The Commission's consultation on a draft delegated regulation amending Commission Delegated Regulation (EU) 2016/522, as regards the list of designated trading venues that have a significant cross-border dimension in the supervision of market abuse and the indicators of market manipulation closes on 14 January 2026.

The objective of the delegated regulation is to amend Delegated Regulation (EU) 2016/522 to:

• establish a list of designated trading venues for the purpose of implementing the mechanism to exchange order data referred to in Article 25a of Regulation (EU) No 596/2014 (MAR) with respect to shares; and
• update Annex II on the practices specifying the indicators of market manipulation, to account for technical developments, such as algorithmic trading, and to correct a few erroneous cross-references.

MAR – INSIDE INFORMATION

The Commission's consultation on a draft delegated regulation supplementing MAR as regards disclosure of inside information in protracted processes and delay of disclosure closes on 12 January 2026.

The delegated act lists in a non-exhaustive way:

• final events in protracted processes, specifying when relevant inside information is to be publicly disclosed; and
• situations in which disclosure cannot be delayed as inside information is in contrast with the latest public announcements or other type of communication.

MIFID II - RESEARCH AND EXECUTION SERVICES

The Commission's consultation on a draft delegated directive amending Delegated Directive (EU) 2017/593 as regards the conditions for the provision of third-party execution and research services to investment firms that provide portfolio management or other investment or ancillary services closed on 1 January 2026.

The Listing Act facilitates the listing of companies on EU capital markets and promotes the provision of investment research by allowing investment firms to pay for research and execution services either jointly or separately (bundling/unbundling payment). The delegated act would require firms to inform their clients about the way those firms pay for research and execution services and sets out the transparency requirements associated with this choice.

PROSPECTUS REGULATION - EU FOLLOW-ON PROSPECTUS AND THE EU GROWTH ISSUANCE PROSPECTUS

The Commission's consultation on a draft delegated regulation amending Delegated Regulation (EU) 2019/980 on the reduced content and the standardised format and sequence of the EU Follow-on prospectus and the EU Growth issuance prospectus closed on 1 January 2026.

The reform of the Prospectus Regulation, as part of the Listing Act, aims to incentivise listings of companies on EU capital markets. It introduces the EU Follow-on prospectus for listed issuers wanting to issue further securities and the EU Growth issuance prospectus for SMEs and companies listing on SME growth markets. These prospectuses will have a reduced content, a standardised format and a set order while providing investors with the information necessary to take informed investment decisions.

SOLVENCY II CONSULTATIONS

Six EIOPA consultations on various mandates relating to Solvency II closed for feedback on 5 January 2026. The six consultations concern two revised ITS, two revised guidelines, one set of new RTS and one set of new guidelines. The two revised ITS relate to disclosure templates and the procedures to be followed for the supervisory approval of the application of a matching adjustment. The two revised guidelines relate to ring-fenced funds and the valuation of technical provisions. The new RTS relate to the calculation of the risk margin and the new guidelines relate to supervisory powers to remedy liquidity vulnerabilities.

Press Release: EIOPA launches new set of consultations related to the Solvency II Review

Consultation Papers:

• Consultation Paper on the proposal for amending Article 58 of Commission Delegated Regulation (EU) 2015/35 on the simplified calculation of the risk margin
• Consultation Paper on the proposal for amending Commission Implementing Regulation (EU) 2015/2451 laying down implementing technical standards with regard to the templates and structure of the disclosure of specific information by supervisory authorities in accordance with Directive 2009/138/EC
• Consultation Paper on the proposal for amending Commission Implementing Regulation (EU) 2015/500 laying down implementing technical standards with regard to the procedures to be followed for the supervisory approval of the application of a matching adjustment
• Consultation Paper on the proposal for revised Guidelines on valuation of technical provisions
• Consultation Paper on the proposal for revised Guidelines on ring-fenced funds
• Consultation Paper on the proposal for Guidelines on supervisory powers to remedy liquidity vulnerabilities

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