European Developments
European Commission requests ESMA technical advice on Retail Investment Strategy implementation
On 24 August 2026, the European Commission published its request to the European Securities and Markets Authority (ESMA) (PDF, 698 KB) to provide technical advice on implementing key aspects of the Retail Investment Strategy (RIS) package. The request follows the political agreement reached on the RIS package and seeks ESMA's input on detailed Level 2 measures needed to operationalise the reforms.
The request provides the clearest indication to date of the practical requirements firms are likely to face under the RIS package. A key focus is the development of a new "value for money" framework across retail investment products, requiring assessment of whether products' costs and charges are justified having regard to their features, performance and benefits to investors. ESMA has also been asked to develop detailed criteria in relation to inducements, the assessment of undue costs under UCITS and AIFMD, and measures to simplify the retail investor journey.
ESMA is required to provide its technical advice to the Commission by 1 October 2027. The RIS package is expected to be published in the Official Journal in early 2027, with application expected from 2029 following the applicable implementation and transposition periods.
ESMA CSDR guidelines to support move to T+1 settlement
ESMA is expected to publish finalised amendments to its guidelines on standardised procedures and messaging protocols used between investment firms and their professional clients under Article 6(2) of the Central Securities Depositories Regulation (EU) 909/2014 (CSDR) in October 2026.
The amendments, which were the subject of ESMA's May 2026 consultation, are intended to align the guidelines with proposed changes to the CSDR settlement discipline regulatory technical standards (RTS) and support the EU's transition to a T+1 securities settlement cycle scheduled for 11 October 2027. The changes are expected to promote greater standardisation of post-trade processes, improve settlement efficiency and reduce the risk of settlement failures.
AMLA consultation on rules for cross-border sharing of suspicious transaction reports
The EU Anti-Money Laundering Authority’s (AMLA) consultation on draft regulatory technical standards (RTS) specifying when a suspicious transaction report submitted to a Financial Intelligence Unit (FIU) should be considered to concern another EU Member State and therefore be shared with the FIU of that Member State closes on 6 October 2026. Feedback will be considered by AMLA before finalising the RTS.
Article 31(1) of the Sixth Anti-Money Laundering Directive (EU) 2024/1640 (AMLD6) provides that, where a report of suspicion concerns another Member State, the FIU shall “promptly forward the report, or all the relevant information obtained from it, to the FIU of that other Member State”. For the purposes of this draft RTS, these two alternatives are operationalised as distinct forms of cross-border transmission. The forwarding of the report corresponds to so-called cross-border reports (XBRs), while the forwarding of all relevant information obtained from the report corresponds to cross-border disseminations (XBDs).
The draft RTS establish clear and harmonised criteria for identifying when a report of suspicions concerns another Member State, and for transmitting it as an XBR or XBD to one or more other FIUs.
The measures are intended to support more consistent information sharing and cooperation between FIUs under the EU's new anti-money laundering framework.
EMIR 3 – ESMA consults on reporting of third-country CCP clearing activity
In August 2026, ESMA launched a consultation on draft regulatory and implementing technical standards (PDF, 1MB) specifying the content and format of the new annual reporting obligation under Article 7d of EMIR. The reporting regime was introduced by EMIR 3 and will apply to clearing members and clients with clearing activity at recognised third-country central counterparties (TC-CCPs).
While Article 7d formally entered into force on 24 December 2024, ESMA confirmed in December 2025 that reporting would not commence (PDF, 174KB) until the necessary Level 2 measures had been adopted and implemented, work on which had been delayed.
The new reporting framework is intended to provide EU supervisors with greater visibility of EU firms' exposures to recognised TC-CCPs and forms part of the broader EMIR 3 reforms designed to strengthen oversight of clearing activity outside the EU. ESMA has sought to limit additional reporting burdens by reusing information already available through existing reporting regimes where possible and requiring reporting only where supervisory information gaps exist.
Proposed reporting fields include instrument types, average annual clearing volumes by Union currency and asset class, and average initial margin posted to recognised TC-CCP. ESMA also proposes the use of LEIs; a standardised CSV reporting format and annual submission by the last business day of January, together with transitional arrangements for the first reporting cycle.
The consultation closes on 12 October 2026, with ESMA expected to submit final technical standards to the European Commission in Q4 2026.
EBA consults on key technical standards and guidelines under revised Deposit Guarantee Schemes Directive (DGSD3)
The European Banking Authority (EBA) has launched four public consultations on draft technical standards and guidelines under the revised Deposit Guarantee Schemes Directive (EU) 2026/804 (DGSD3).
The consultation package covers several core elements of the new framework. The EBA has proposed regulatory technical standards (RTS) to support payouts in respect of client funds held through intermediary accounts, ensuring deposit guarantee schemes (DGSs) receive the information necessary to identify and reimburse underlying beneficiaries. It has also proposed implementing standards introducing harmonised templates and procedures for information exchange between credit institutions, DGSs, designated authorities and the EBA, including in bank failure scenarios.
In addition, the EBA has published draft standards on depositor information, which would establish harmonised content and formats for information provided to depositors at account opening and on an ongoing basis, as well as communications required in specific circumstances such as bank mergers and bank failures. A fourth consultation concerns draft guidelines on the investment of DGS funds, setting out principles designed to ensure appropriate diversification, low risk and adequate liquidity.
The proposals form part of the implementation of DGSD3 and are intended to strengthen depositor protection, improve the effectiveness of DGS payout processes and promote greater consistency across Member States.
The consultations are open until 23 October 2026. The draft RTS on client funds is expected to be submitted to the Commission for endorsement in late 2026.
We will continue to monitor the outcome of these consultations as they provide an early indication of the operational and disclosure requirements likely to accompany DGSD3 implementation.
EFRAG consults on sustainability reporting standards for certain non-EU groups
In July 2026, EFRAG launched a public consultation on the exposure draft of the European Sustainability Reporting Standards for Certain Non-EU Undertakings (ESRS-40a). The proposed standards have been developed under Article 40a of the Accounting Directive and are intended to support implementation of the Corporate Sustainability Reporting Directive (CSRD) reporting requirements for certain non-EU groups with significant activities in the European Union.
The proposed ESRS-40a framework would apply to certain subsidiaries and branches established in the EU whose ultimate parent undertaking is governed by the law of a third country and which meet the applicable reporting thresholds. The objective is to establish a level playing field between EU and non-EU market participants to provide greater transparency regarding the impacts of non-EU groups on people and the environment.
The draft standards are based on the revised ESRS framework adopted in 2026 but have been adapted for use by non-EU groups. In particular, the proposed framework focuses on impacts on people and the environment and seeks stakeholder feedback on a number of key design features, including the scope of disclosures and interaction with other sustainability reporting frameworks.
Comments on the exposure draft are open until 31 October 2026. Following the close of the consultation, EFRAG will review stakeholder feedback and is expected to submit its technical advice on ESRS-40a to the European Commission in January 2027. The Commission is then expected to launch its own consultation and adopt the final standard by delegated act in 2027.
EBA Guidelines on the definition of default
The European Banking Authority’s (EBA) amended Guidelines on the application of the definition of default under Article 178 of the Capital Requirements Regulation (EU) 575/2013 (CRR) will apply from 19 October 2026.
The amendments align the Guidelines with changes introduced by CRR3 and make targeted changes to the treatment of certain non-recourse factoring arrangements, including extending the technical past-due treatment at invoice level from 30 to 90 days to better reflect the operational features of invoice-based receivables and reduce the risk of incorrect default classifications. The EBA has also confirmed that the existing 1% net present value (NPV) loss threshold used to assess whether a debt restructuring results in a diminished financial obligation and consequent default remains unchanged.
ESAs consultations on reforms to EU Taxonomy disclosures
As part of the Commission’s review of the Disclosures Delegated Act (EU) 2021/2178 under Article 8 of the Taxonomy Regulation, the European Supervisory Authorities (EBA, ESMA and EIOPA) launched coordinated consultations on targeted amendments to the Act. The consultations seek feedback on measures to simplify sustainability reporting requirements while maintaining the usefulness of disclosures for investors and other stakeholders.
Areas under consideration include simplification of Taxonomy key performance indicators (KPIs), clarification of group-level disclosures and alignment of certain requirements with the EU Green Bond Regulation and other targeted measures to improve the usability and consistency of Taxonomy-related disclosures across the financial sector.
The ESAs are expected to submit their final technical advice to the Commission by the end of October 2026. The Commission intends to complete its review of the Act in Q1 2027, with any resulting amendments expected to apply from Q3 2027.
The three consultations are linked below:
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