Looking Ahead: European Developments
CRD IV – THIRD COUNTRY BRANCHES
The European Banking Authority’s (EBA) consultations on draft regulatory technical standards (RTS) and guidelines relating to the new framework for third-country branches (TCBs) under Directive 2013/36/EU (the Capital Requirements Directive / CRD IV) closes on 10 October 2025.
The three consultations deal with the following:
- Draft RTS containing provisions on the establishment and functioning of colleges of supervisors and requirements for co-operation and information exchange in scenarios where no college of supervisors needs to be established.
- Draft RTS specifying the book-keeping system that TCBs should have in place to identify their transactions and record any assets and liabilities booked or originated, the minimum set of information to be maintained in their registry books and the information on risks to be provided in the registry books.
- Draft guidelines specifying the instruments that TCBs may use to satisfy the minimum capital endowment requirement in addition to cash and debt securities issued by central governments or central banks.
Press Release: The EBA consults on regulatory products on third-country branches under the Capital Requirements Directive
Consultation Papers:
- Consultation on Regulatory Technical Standards on cooperation and colleges of supervisors for third-country branches
- Consultation Paper on draft RTS on TCB booking arrangements
- Consultation on Guidelines on third country branches capital endowment requirement
In addition, the EBA’s consultation on its draft Implementing Technical Standards (ITS) for the supervisory reporting of third-country branches under CRD IV closes on 31 October 2025.
The ITS aim to establish uniform formats, definitions, and reporting frequencies for TCBs, ensuring a consistent and comprehensive approach to regulatory and financial information reporting across the EU.
Press Release: The EBA consults on harmonised reporting for third-country branches across the EU
Consultation Paper: Consultation on Implementing Technical Standards on the supervisory reporting of Third Country Branches
CRR – ASUS
The EBA’s consultation on draft guidelines on Ancillary Services Undertakings (ASUs) closes on 7 October 2025.
The proper identification of ASUs is necessary to ensure the consistent and effective application of the prudential framework, as this is a key input into determining the scope of prudential consolidation for banking groups. The draft guidelines set the criteria for the identification of: (a) activities that should be considered a “direct extension of banking”; and (b) activities that should be considered “ancillary to banking”. They also outline the process to identify activities that the EBA may consider similar to those referred to in points (a) and (b) of Article 4(1)(18) of Regulation (EU) No 575/2013 (CRR) to ensure that the guidelines remain responsive to emerging sources of risks.
Press Release: The EBA consults on draft Guidelines on Ancillary Services Undertakings
Consultation Paper: Guidelines on Ancillary Services Undertakings
CRR – DEFAULT DEFINITION
The EBA’s consultation on draft guidelines on the application of the definition of default under Article 178 of the CRR closes on 15 October 2025. In the draft guidelines the EBA proposes to: (i) maintain the 1% threshold for the net present value loss in debt restructuring; and (ii) increase the exceptional treatment of days past due at invoice level from 30 to 90 for factoring arrangements to better reflect the economic reality of purchased receivables.
Press Release: The EBA consults on draft amended Guidelines on the application of the definition of default under the Capital Requirements Regulation
Consultation Paper: Consultation paper amending Guidelines on definition of default
CRR - CCFS
The EBA’s consultation on draft guidelines on the methodology to estimate and apply credit conversion factors (CCF) under Article 182(5) of the CRR closes on 29 October 2025. CCF is used in the calculation of own funds requirements. The draft guidelines aim to promote a consistent and harmonised approach to CCF estimation.
Consultation Paper: Consultation on Draft Guidelines on the methodology to estimate and apply credit conversion factors under the Capital Requirements Regulation
CRR – MREL
The EBA’s consultation on draft RTS amending Commission Delegated Regulation (EU) No 241/2014 on the timing for the application for prior permission to reduce own funds and eligible liabilities instruments under Articles 77, 78 and 78a of the CRR closes on 9 October 2025.
The draft RTS: (i) set out a shorter timeframe of three months (down from four months) for competent authorities to process applications to reduce own funds and eligible liabilities instruments; and (ii) remove the simplified procedure for the reduction of MREL eligible liabilities for liquidation entities.
Press Release: The EBA consults to amend its technical standards on own funds and eligible liabilities
Consultation Paper: Consultation on Regulatory Technical Standards amending RTS on own funds and eligible liabilities
EMIR – CCP COLLEGES
Commission Delegated Regulation (EU) 2025/1493 of 11 June 2025 amending Commission Delegated Regulation (EU) No 876/2013 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council as regards changes to the functioning and management of colleges for central counterparties will enter into force on 15 October 2025.
The Delegated Regulation will make revisions to Commission Delegated Regulation (EU) 876/2013 relating to:
- the deadline for establishing a college and the role of the co-chairs in the context of the establishment of a college;
- the roles of the co-chairs and governance of colleges with a view to ensure the effective and consistent functioning of colleges for all central counterparties (CCPs) across the EU;
- the additional information that a CCP’s competent authority should provide to college members; and
- the obligation on the CCP’s competent authority and college members to use the central database under Article 17c of Regulation (EU) No 648/2012 (EMIR) to exchange any information.
DIGITAL FAIRNESS ACT
The European Commission’s consultation and call for evidence on the proposed Digital Fairness Act closes on 24 October 2025.
The intention of the Digital Fairness Act is to strengthen protection and digital fairness for consumers, while ensuring a level playing field and simplifying rules for businesses in the EU. It will address harmful practices that consumers face online, such as deceptive or manipulative interface design, misleading marketing by social media influencers, addictive design of digital products and unfair personalisation practices, especially where consumer vulnerabilities are exploited for commercial purposes. It will also focus on the protection of minors online.
Press Release: Commission launches open consultation on the forthcoming Digital Fairness Act
Consultation Paper: Digital Fairness Act
Call for Evidence: Digital Fairness Act
IRRD
Two European Insurance and Occupational Pensions Authority (EIOPA) consultations relating to the implementation of Directive (EU) 2025/1 (IRRD) close on 31 October 2025.
The first consultation relates to draft RTS on the operational functioning of resolution colleges. The RTS contain provisions on the establishment and ongoing functioning of resolution colleges and the processes for reaching joint decisions on the development of group resolution plans, the assessment of resolvability and taking measures to address impediments to resolvability. They also cover the governance of cross-border group resolution.
The second consultation relates to draft ITS on resolution reporting. The ITS contain provisions specifying procedures and a minimum set of standard forms and templates for the provision of information by insurers to resolution authorities to enable resolution authorities to develop and implement resolution plans.
Press Release: EIOPA opens consultation on rules for resolution colleges and reporting requirements under IRRD
Consultation Papers:
MiCA
Commission Delegated Regulation (EU) 2025/1125 of 5 June 2025 supplementing Regulation (EU) 2023/1114 of the European Parliament and of the Council with regard to regulatory technical standards specifying the information in an application for authorisation to offer asset-referenced tokens to the public or to seek their admission to trading and Commission Implementing Regulation (EU) 2025/1126 of 5 June 2025 laying down implementing technical standards for the application of Regulation (EU) 2023/1114 of the European Parliament and of the Council with regard to the establishment of standard forms, templates and procedures for the information to be included in the application for authorisation to offer asset-referenced tokens to the public and to seek their admission to trading, enter into force on 5 October 2025. Together, the delegated regulations set out what information must be included in an application for authorisation to offer or list asset-referenced tokens, and the standard forms and procedures to be used in connection with these activities.
NON-PERFORMING EXPOSURES (NPES)
The ECB’s consultation on its draft guideline for a harmonised supervisory approach to the coverage of NPEs held by less significant institutions (LSIs) closes on 27 October 2025.
The draft guideline is addressed to national competent authorities (NCAs) and was developed with their collaboration. It sets out supervisory coverage expectations which NCAs will apply on a case-by-case basis to those LSIs particularly exposed to risks from legacy NPEs that were originated before 26 April 2019.
Press Release: ECB consults on managing legacy NPEs in less significant institutions
Consultation Paper: Public consultation on a draft Guideline for a harmonised supervisory approach to the coverage of NPEs held by LSIs
PRODUCT OVERSIGHT AND GOVERNANCE ARRANGEMENTS FOR RETAIL BANKING PRODUCTS
The EBA’s consultation on the revision of the guidelines on product oversight and governance (POG) arrangements for retail banking products to take into account products with Environmental, Social and Governance (ESG) features and greenwashing risks closes on 9 October 2025.
The EBA issued its initial POG guidelines in 2016. The 2016 guidelines are addressed to manufacturers and distributors of retail banking products within the EBA’s remit, namely mortgages, personal loans, deposits, payment accounts, payment services, and electronic money. The proposed revision aims to prevent greenwashing and ensure that financial institutions continue to meet the highest standards of business conduct when offering products with ESG features to consumers.
The EBA expects to publish its final guidelines in Q1 2026, which will be applied from 1 December 2026.
Consultation Paper: Consultation on Guidelines on product oversight and governance arrangements for retail banking products
SOLVENCY II
EIOPA’s consultation on supervisory reporting and public disclosure requirements under Directive 2009/138/EC (Solvency II) closes on 10 October 2025.
The consultation package includes the below proposals for the following ITS and guidelines:
- amendments to Implementing Regulation (EU) 2023/894 on supervisory reporting;
- amendments to Implementing Regulation (EU) 2023/895 on public disclosure;
- revised Guidelines on reporting for financial stability purposes; and
- revised Guidelines on the supervision of branches of third-country insurance undertakings.
Amongst other things, the proposals are intended to simplify and reduce the reporting burden for firms subject to Solvency II.
In addition, EIOPA’s consultation on its proposal for revised guidelines concerning the exchange of information on a systematic basis within colleges of supervisors closes on 14 October 2025.
Colleges of supervisors are forums where NCAs coordinate the supervision of insurance groups operating across borders. They facilitate information exchange, promote joint decision-making, and support the adoption of common supervisory approaches for effective group-wide oversight under the Solvency II framework.
The revised guidelines will build on the existing framework introduced in 2015 by adding a new guideline on the exchange of group Own Risk and Solvency Assessment (ORSA) reports, streamlining the technical annexes and updating legal references to reflect the latest regulatory changes.
Press Releases:
- Consultation on supervisory reporting and public disclosure requirements under Solvency II
- EIOPA launches consultation on revised Guidelines on exchange of information within colleges
Consultation Papers:
SRB – RESOLUTION
The Single Resolution Board’s (SRB) consultation on its operational guidance for banks on separability and transferability for transfer tools closes on 22 October 2025.
The SRB recently published the final version of its operational guidance for banks on resolvability self-assessment. That guidance introduced a standardised self-assessment report designed to help banks to document their resolvability assessment in a consistent manner, promoting a level playing field, transparency and comparability across the sector.
The focus of this consultation is to update the SRB’s operational guidance on separability and transferability to align it with the guidance on resolvability self-assessment. The updated guidance has also been aligned with the SRB’s updated approach to crisis readiness. It includes an annex on testing separability and transfer strategies (which will be incorporated into the operational guidance for banks on resolvability self-assessment once finalised), and guidance on transfer playbooks.
Once finalised, the guidance will be applicable from the Resolution Planning Cycle 2026.
Press Release: SRB launches public consultation on its updated approach on separability and transferability: towards more efficiency and effectiveness
Consultation Paper: Public consultation on the Operational guidance for banks on separability and transferability
THIRD-PARTY RISK MANAGEMENT
The EBA’s consultation on its draft guidelines on third-party risk management with regard to non-ICT related services closes on 8 October 2025.
The draft guidelines focus on third-party arrangements in relation to non-ICT (information and communication technology) related services provided by third-party service providers and their subcontractors, with a particular focus on the provision of critical or important functions. The draft guidelines revise and update the previous EBA Guidelines on outsourcing, published in 2019, in line with Regulation (EU) 2022/2554 (the Digital Operational Resilience Act / DORA).
Press Release: The EBA launches consultation on its draft Guidelines on third-party risk management with regard to non-ICT related services
Consultation Paper: Consultation on draft Guidelines on the sound management of third-party risk