- within Law Department Performance, Antitrust/Competition Law and International Law topic(s)
ESG Ratings Regulation – Transitional notification deadline and fines and penalties
The ESG Ratings Regulation (Regulation (EU) 2024/3005) (ESG Ratings Regulation) establishes a harmonised EU regulatory framework for ESG rating providers, including authorisation, organisational, governance and conflict management requirements, together with ongoing supervision by ESMA.
As part of the transitional arrangements under the ESG Ratings Regulation, ESG rating providers already operating in the EU on 2 July 2026 (other than qualifying small ESG rating providers) may continue to provide ESG ratings during the transition period, provided that they notify ESMA of their intention to seek authorisation by 2 August 2026 and submit a complete authorisation application by 2 November 2026. Firms that fail to meet these deadlines risk losing the benefit of the transitional regime and may be unable to continue providing ESG ratings in the EU pending authorisation.
Separately, on 30 July 2026, Commission Delegated Regulation (EU) 2026/904 (PDF, 480 KB) supplementing the ESG Ratings Regulation was published in the Official Journal of the European Union and will enter into force on 19 August 2026. This delegated regulation sets out the rules governing ESMA's investigation and enforcement processes, including procedures relating to fines and periodic penalty payments.
MAR – Trading during closed periods and market manipulation indicators
Commission Delegated Regulation (EU) 2026/788 of 8 April 2026 amending Delegated Regulation (EU) 2016/522 as regards the permission for trading during closed periods, the list of designated trading venues that have a significant cross-border dimension in the supervision of market abuse, and indicators of market manipulation enters into force on 5 August 2026.
The delegated regulation forms part of the broader reforms introduced under the EU Listing Act package and updates certain technical provisions underpinning the EU Market Abuse Regulation (Regulation (EU) 2014/596) (MAR).
The amendments extend the existing closed-period trading exemptions for persons discharging managerial responsibilities (PDMRs) and their closely associated persons to reflect changes made by the Listing Act Regulation (Regulation (EU) 2024/2809), which broadened the scope of the MAR exemptions beyond shares to other financial instruments.
The delegated regulation also supports the enhanced supervision of cross-border market abuse by designating trading venues with a significant cross-border dimension for the purposes of a new order data exchange mechanism between competent authorities. The mechanism is intended to strengthen regulators' ability to identify and investigate market abuse occurring across multiple trading venues and jurisdictions.
In addition, the amendments update and clarify the indicators of market manipulation used by competent authorities when monitoring trading activity and assessing potentially abusive conduct. These changes are intended to improve supervisory consistency and enhance the detection and enforcement of market abuse across EU markets.
MMF stress test parameters – ESMA consultation
ESMA's consultation on changing the process for updating Money Market Fund (MMF) stress test parameters under the Money Market Funds Regulation (Regulation (EU) 2017/1131) (MMF Regulation), closes for feedback on 6 August 2026.
Under the MMF Regulation, ESMA is required to develop and maintain guidelines setting out common reference parameters for the stress testing exercises that MMFs and their managers must perform. To streamline the approach, ESMA is now proposing to publish and maintain the underlying stress test parameters on a dedicated section of ESMA’s website. The change is intended to streamline the annual update process and facilitate more timely application of revised stress testing assumptions.
Subject to the outcome of the consultation, the revised process is expected to be implemented as part of the next annual update of the MMF stress test parameters later in 2026.
Taxonomy Disclosures Delegated Act – ESA consultations
The consultations launched by each of the European Supervisory Authorities (EBA, ESMA and EIOPA) on the revision of the Taxonomy Disclosures Delegated Act (Commission Delegated Regulation (EU) 2021/2178) close for feedback on 12 August 2026. The ESA consultations were run in parallel on the same subject, within their respective areas of competence. The EBA consultation is accessible here, the ESMA consultation here and the EIOPA consultation here.
These consultations form part of the European Commission’s broader review of the Taxonomy Disclosures Delegated Act and wider simplification agenda. The consultations seek views on simplifying and improving the usability of sustainability-related KPIs and reducing reporting burdens under the EU framework. Final advice to the Commission is due in October 2026, with amendments to the Delegated Act expected to be adopted in Q1 2027 and to enter into force in Q3 2027.
CSDDD – European Commission consultation on implementation guidelines
The European Commission’s consultation on the development of guidelines under the Corporate Sustainability Due Diligence Directive (Directive (EU) 2024/1760) (CSDDD) closes on 14 August 2026. The guidelines are intended to support in-scope companies in complying with the Directive's due diligence obligations and to assist Member State authorities in the consistent implementation and enforcement of the new regime.
The guidance is expected to provide practical direction across a range of key compliance areas, including the identification, assessment, prevention, mitigation and remediation of adverse human rights and environmental impacts within companies' operations, subsidiaries and value chains. The Commission also intends to address the use of model contractual clauses, third-party verification and assurance mechanisms, industry and multi-stakeholder initiatives, stakeholder engagement processes, and the use of data sources and digital tools to support due diligence activities.
The guidelines are expected to be relevant not only to companies directly within the scope of the CSDDD, but also to suppliers, business partners, industry bodies, civil society organisations and other stakeholders participating in due diligence processes. The consultation forms part of the broader implementation framework for the CSDDD and is expected to shape how companies operationalise their sustainability due diligence obligations in practice.
AMLA – Direct supervision reporting package
As part of the preparation for AMLA's direct supervision of certain high-risk financial institutions from 2028, national competent authorities are required to collect data from provisionally eligible obliged entities by 15 August 2026, using AMLA's standardised reporting template and interpretative note. An error correction and alignment phase will follow, with the provisional list of eligible obliged entities expected to be finalised by the end of September 2026.
FATF – Payment transparency consultation
The Financial Action Task Force's public consultation on new guidance on the implementation of FATF Recommendation 16 (payment transparency) (PDF, 319 KB) closes for feedback on 21 August 2026. Recommendation 16 sets out international standards requiring specified information to accompany payments and value transfers, with the aim of supporting efforts to combat money laundering, terrorist financing and proliferation financing. The revised framework also seeks to enhance payment transparency and strengthen measures to help detect and prevent fraud.
MiFIR – Liquid market assessment and market structure reforms
Commission Delegated Regulation (EU) 2026/482, supplementing the Markets in Financial Instruments Regulation (MiFIR), will apply from 23 August 2026. The delegated regulation forms part of the EU's broader MiFIR Review package and introduces amendments to the methodology used when assessing whether a financial instrument is traded on a "liquid market". In particular, it replaces the existing free-float criterion with a market-capitalisation-based approach, with the aim of ensuring that liquidity assessments better reflect the size and characteristics of issuers and trading activity. The delegated regulation also clarifies post-trade risk-reduction services and systematic internaliser thresholds.
MiCA – Formal review
The European Commission has extended the deadline for its public consultation on a formal review of the Markets in Crypto-Assets Regulation (Regulation (EU) 2023/1114) (MiCA), from 31 August 2026 to 30 September 2026.
The review represents the first comprehensive assessment of the framework since its implementation and, amongst other items, seeks to evaluate whether MiCA remains effective against a backdrop of evolving crypto-asset markets and international regulatory developments. Areas under consideration include the classification of crypto-assets, the stablecoin framework, the authorisation and supervision of crypto-asset service providers, and potential regulatory gaps, including those relating to decentralised finance (DeFi) and tokenised assets.
The outcome of the consultation is expected to help shape future EU policy on digital assets.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
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