Finance

Horizon Scanner: Finance

The Arthur Cox Finance Group publishes a monthly Horizon Scanner: Finance, looking ahead to key upcoming Irish and EU legal and regulatory developments.

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Sustainable finance

Our ESG Section also highlights key sustainable finance-related developments for 2026, including the expansion of ESMA’s supervisory powers under the EU Green Bond Standard Regulation and the ESG Ratings Regulation, and ongoing simplification work under the Omnibus proposals.

AML/CFT

The EBA handed over its AML / CFT mandates, powers and resources to the new EU Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) at the end of 2025. Since being operationalised, AMLA’s focus has been on drafting the regulatory technical standards (RTS), implementing technical standards (ITS) and guidelines required under the EU AML / CFT package. AMLA is responsible for 23 level 2 and level 3 mandates that must be delivered before July 2026. As an immediate priority, AMLA will have a focus on the supervision of higher risk sectors and areas across the EU, including crypto-asset service providers (CASPs).

Domestically, work on the legislation necessary to transpose all elements of the EU AML / CFT package is progressing. There is a 10 July 2026 deadline for Member States to transpose rules relating to access to beneficial ownership registers.

For more information, read our insights here: AML Update: 'Single Rulebook' and AMLA Regulations, and related directives, published in official journal, here: Regulating and supervising well – a more effective and efficient framework, and see the first AMLA work programme here: AMLA Work Programme 2025: from vision to action.

Consumer Credit Directive

The revised Consumer Credit Directive will repeal the existing Consumer Credit Directive, Directive 2008/48/EC, on 20 November 2026. Member States were required to adopt national transposing legislation relating to the revised Consumer Credit Directive by 20 November 2025 and will apply those measures from 20 November 2026. The Irish transposing legislation has yet to be published.

CMDI

Negotiations on the finalised texts of the Crisis Management and Deposit Insurance Framework (comprised of 2 Directives and 1 Regulation amending the Bank Recovery and Resolution Directive (BRRD), Single Resolution Mechanism (SRM) Regulation and the Deposit Guarantee Schemes Directive) are progressing, with the aim of finalising all for publication in the Official Journal in early 2026.

Consumer protection

The Consumer Protection Code (CPC) has been revised, updated and consolidated into the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Consumer Protection) Regulations 2025 (Consumer Protection Regulations). The Code of Conduct on Mortgage Arrears (CCMA), the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Licensed Moneylenders) Regulations 2020 and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Insurance Requirements) Regulations 2022 have also been updated (albeit less substantively) and consolidated into the Consumer Protection Regulations. The Consumer Protection Regulations will apply from 24 March 2026. The Central Bank of Ireland (CBI) has published a consultation paper (open for feedback until 6 March 2026) on the possible extension of the revised CPC to credit unions activities.

According to the Government’s Action Plan on Competitiveness and Productivity, the Government plans to provide the CCPC with new powers to (i) impose administrative financial sanctions in respect of breaches of consumer protection legislation and (ii) undertake Bid Rigging Screening in Q4 2026.

For more information, read our insights here: CPC and standards for business: Central Bank launches two sets of regulations (to apply from 24 March 2026), Consumer Protection Regulations - impact on insurance and Unlocking growth: Credit Union lending limits increased.

Distance marketing of consumer financial services

The revised Distance Marketing Directive will repeal the existing Distance Marketing Directive, Directive 2002/65/EC, on 19 June 2026. Member States were required to adopt national transposing legislation relating to the revised Distance Marketing Directive by 19 December 2025 and will apply those measures from 19 June 2026. The Irish transposing legislation has yet to be published.

The Consumer Protection Code has been revised, updated and consolidated into the Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Consumer Protection) Regulations 2025.

Member States were required to adopt national transposing legislation relating to the revised Distance Marketing Directive by 19 December 2025.

Member States are required to adopt national transposing legislation relating to Directive (EU) 2024/2994 by 25 June 2026.

EMIR 3.0 (European Market Infrastructure Regulation)

EMIR 3.0 remains an area of focus in the EBA and ESMA work programmes for 2026. The active account requirement (AAR) became applicable on 25 June 2025 for counterparties meeting the relevant conditions and the obligation for in-scope counterparties to report information on clearing activity in third country central counterparties (CCPs) became applicable in December 2025. As the associated RTS and ITS setting out the details of the reporting obligations are not in force, ESMA has clarified that reporting can be delayed until July 2026 (in the case of the AAR) and until the relevant Level 2 texts are adopted (in the case of the CCP reporting obligation).

Member States are required to adopt national transposing legislation relating to Directive (EU) 2024/2994 by 25 June 2026.

For more information, read our insights here: EMIR 3.0 comes into force on 24 December 2024 and EMIR 3.0 update and the active account requirement, see the EBA’s 2026 work programme here: EBA work programme 2026 and ESMA’s 2026 work programme here: ESMA Annual Work Programme 2026, and see ESMA’s public statement on the reporting obligations here: ESMA public statement.

EU Banking Package

Capital Requirements Directive 6 (CRD 6)

The deadline for the transposition of CRD 6 is 10 January 2026. The third country branch (TCB) requirement is likely to continue to receive significant attention throughout 2026, as grandfathering ends on 10 July 2026 and impacted entities prepare for the TCB requirement to become fully applicable on 11 January 2027.

Capital Requirements Regulation (CRR 3)

The Commission published a consultation and a call for evidence on the prudential framework for market risk for banks, the Fundamental Review of the Trading Book (FRTB), at the end of 2025. The initiatives outlined various policy options to mitigate negative capital effects for EU banks, with the intention of maintaining the level-playing field until other jurisdictions adopt the FRTB standards. The Commission intends to adopt the relevant delegated act by the end of March 2026.

The Commission’s proposed amendments to the CRR in connection with the securitisation framework are noted below.

The Commission has also announced that it will publish a report that assesses the overall situation of the banking system in the Single Market, including an evaluation of the banking sector’s competitiveness, in 2026. The report will look at the complexity of the regulatory framework for banks and outline possible avenues for simplification.

For more information, see the FRTB consultation paper here: Targeted consultation on the application of the market risk prudential framework, the call for evidence here: Call for Evidence FRTB and the proposed amendments to the CRR here: Commission proposes measures to revive the EU Securitisation Framework.

EU Benchmark Regulation

Regulation 2025/914, which amends the EU Benchmarks Regulation, applies from 1 January 2026. Whilst the amending regulation pares back the scope of the EU Benchmarks Regulation to cover critical benchmarks, significant benchmarks, certain commodity benchmarks and climate-related benchmarks such as EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks, it also expands ESMA’s supervisory remit in respect of benchmark administrators. From 1 January 2026, ESMA is in charge of supervising administrators endorsing third country benchmarks.

For more information, see the amending regulation here: Regulation (EU) 2025/914 of the European Parliament and of the Council of 7 May 2025.

Our Asset Management and Investment Funds section also highlights the application of the EU Benchmarks Regulation from 1 January 2026 in the context of that sector.

EU Market Abuse Regulation (MAR)

Certain amendments to MAR introduced by Regulation (EU) 2024/2809 (the Listing Regulation) will enter into force this year. From 5 June 2026, inside information will not have to be disclosed in respect of a protracted transaction until the circumstances / event that the protracted process intends to bring about occurs, or unless confidentiality cannot be maintained. Whereas disclosure could previously be delayed where a delay was unlikely to mislead the public, from 5 June 2026 this will be replaced by a condition that the inside information is not in contrast with the latest public announcement / communication from the issuer about the matter to which the inside information relates. In connection with this, ESMA has indicated that it intends to review its guidelines on the delayed disclosure of inside information in Q1 2026. Other amendments relating to sanctions and supervisory powers will also enter into force.

For more information, read our insights here: Listing Act published in Official Journal: Update on changes to Prospectus and Market Abuse Regulations (debt securities) and EU Market Abuse Regulation: Listing Act changes relevant to debt capital markets.

Our Corporate and M&A section also highlights the relevant changes introduced to MAR by the Listing Regulation in the context of that sector.

EU Prospectus Regulation

Certain amendments to the Prospectus Regulation introduced by the Listing Regulation will enter into force this year. From 5 March 2026, the changes relevant to the new EU Follow-on Prospectus and the new EU Growth Prospectus will apply. Other changes introduced by the Listing Act which envisage that (i) the format and sequence of information in a prospectus will be standardised and (ii) debt securities advertised as taking ESG factors into account or as pursuing ESG objectives will have certain ESG disclosures will apply from 5 June 2026. In connection with this, ESMA has also indicated that it intends to review its guidelines on disclosure requirements under the Prospectus Regulation in Q3 2026. The Minister for Finance has indicated that he will set the prospectus exemption threshold for public offers of securities at €12 million and require issuers availing of the exemption to publish a prospectus to provide a prospectus summary. The national transposing legislation must be published by 4 June 2026.

For more information, read our insights here: Listing Act published in Official Journal: Update on changes to Prospectus and Market Abuse Regulations (debt securities) and EU Prospectus Regulation: Listing Act changes relevant to debt capital markets.

Our Corporate and M&A section also highlights the relevant changes introduced to the Prospectus Regulation by the Listing Regulation in the context of that sector.

EU Securitisation Framework

In June 2025 the Commission adopted a package of measures aimed at revitalising the European securitisation market. The package was the first legislative initiative proposed under the savings and investments union (SIU) strategy and comprises of the following measures:

Political negotiation on the texts of the draft Regulations amending the Securitisation Regulation and the CRR are ongoing, with the final Parliament text expected in H1 2026. The main areas of contention have been the distinction between public and private securitisation transactions, and sanctions for breach of due diligence obligations.

For more information, read our insights here: Private Securitisations: ESMA proposes streamlined disclosure template, Securitisation Regulation amendments – A targeted approach, and Proposed updates to Solvency II Delegated Regulation published.

European Single Access Point

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. Work is ongoing to establish and operationalise ESAP in advance of this date. Member States have until 10 January 2026 to transpose the related changes to the various impacted regulations and directives in connection with the above. From 10 July 2026, data collection will begin in respect of the Prospectus Regulation, Short Selling Regulation and Transparency Directive.

The CBI has been designated as the collection body under the Irish Transparency Regulations for ESAP purposes. Further designations of one or more collection bodies are expected in 2026.

For more information, read our insights here: ESAP Regulation published in Official Journal; timing confirmed and ESAP: Platform for public information on companies and financial products to go live in 2027

Our Corporate and M&A section also highlights relevant updates as regards ESAP in the context of that sector.

Individual Accountability Framework

Fitness and probity

The CBI published: (i) a feedback statement to its Consultation (CP160) on proposed amendments to the Fitness and Probity regime and (ii) the revised / finalised Guidelines on the Standards of Fitness and Probity in November 2025. One of the takeaways from the feedback statement was that the list of prescribed PCFs would be reviewed and updated in H2 2026.

For more information, read our insights here: Finalised Fitness and Probity Standards and Guidance published and Regulating and supervising well – A more effective and efficient framework.

Business standards

Under the Central Bank (Individual Accountability Framework) Act 2023, the CBI is empowered to prescribe business standards for all or specific classes of regulated entities. These standards have now been published in the form of the Central Bank Reform Act 2010 (Section 17A) (Standards for Business) Regulations 2025 and will apply from 24 March 2026. The standards are divided into Standards for Business and Supporting Standards for Business.

For more information, read our insights here: IAF/SEAR Update: Business Standards Regulations published (effective 24 March 2026).

Our Asset Management and Investment Funds section also highlights the application of the revised Business Standards from 24 March 2026 in the context of that sector.

Insurance

While the transposition deadlines for the Directive amending Solvency II and the Insurance Recovery and Resolution Directive (IRRD) (both published in the Official Journal in January 2025) are end-January 2027, preparatory work will continue throughout the year and we are likely to see the domestic transposing legislation by end 2026. The CBI has indicated that it will also update its regulatory instruments and guidance from H1 2026 to H1 2027, to ensure compatibility with the revised Solvency II framework and IRRD.

For more information, read our insights here: EU publishes amendments to Solvency II and IRRD, Proposed updates to Solvency II Delegated Regulation published, Department of Finance publishes consultation paper on the IRRD, and Regulating and supervising well – a more effective and efficient framework.

Limited Partnerships

During 2026, we expect to see the Bill arising from the publication, by the Department of Enterprise, Trade and Employment, of the General Scheme of the Registration of Limited Partnerships and Business Names Bill in late July 2024, setting out proposals to reform the Limited Partnerships Act 1907.

For more information, read our insights here: Limited Partnerships: proposals for reform published.

Our Corporate and M&A section also highlights relevant updates as regards the Limited Partnerships Bill in the context of that sector.

Under the Central Bank (Individual Accountability Framework) Act 2023, the Central Bank is empowered to prescribe business standards for all or specific classes of regulated entities.

MiCA’s optional grandfathering period, which allows EU Member States to permit entities already providing crypto-asset services in their jurisdiction to continue providing those services until 1 July 2026, will come to an end.

Market Infrastructure

Market Integration Package

The Commission published its legislative proposal on market integration and supervision on 4 December 2025. The proposal forms a central pillar of the Commission’s SIU strategy, in particular in relation to creating more integrated and deeper capital markets. Negotiations on the package are expected to take place throughout 2026.

For more information, read our briefing here: Supervising the future: how the Market Integration Package will reshape European capital markets.

Our Asset Management and Investment Funds section also highlights certain elements of the Market Integration Package in the context of that sector.

Move to T+1 settlement cycle

In July 2025, the EU T+1 Industry Committee published its High Level Roadmap for the transition to a T+1 settlement cycle for securities on 11 October 2027. The implementation of the recommendations in the Roadmap will be a key focus for firms throughout 2026 who are preparing for the transition to T+1 settlement. The draft RTS on settlement discipline have been submitted to the Commission for review and, if adopted in their current form, will enter into force on 7 December 2026. The draft RTS provide for a phased-in implementation schedule, beginning in December 2026 and concluding by 11 October 2027, to ensure a smooth transition to the new regime.

For more information, read our insights here: T+1 settlement update: commission proposes change to CSDR.

Markets in Crypto Assets Regulation (MiCA)

The effective implementation of MiCA will remain a key focus of regulators in 2026, in particular in respect of conduct requirements aimed at consumer protection. MiCA’s optional grandfathering period, which allows EU Member States to permit entities already providing crypto-asset services in their jurisdiction to continue providing those services until 1 July 2026, will come to an end, levelling the playing field across the EU. Ireland had already applied a shorter grandfathering period of 12 months from December 2024 at ESMA’s request. Other areas of focus in 2026 will likely relate to “multi-issued” stablecoins and supervision.

For more information, read our insights here: MiCA: Grandfathering period shortened to 12 months; Department publishes feedback statement and here: Supervising the future: how the Market Integration Package will reshape European capital markets.

Markets in Financial Instruments Directive (MiFID) and Markets in Financial Instruments Regulation (MiFIR)

The Commission has adopted the technical standards required to enable the creation of consolidated tapes (CT), the majority of which will apply from 2 March 2026. Ediphy (fairCT) has been selected as the preferred applicant for operating the consolidated tape for bonds. Depending on how long the authorisation process takes, the CT for bonds could become operational in 2026.

The Listing Act Directive amends the MiFID II investment research rules, providing firms with the option to bundle research / execution payments irrespective of the size of the issuer. Member States will have until 5 June 2026 to transpose the changes into domestic rules. ESMA also published draft RTS establishing an EU code of conduct for issuer-sponsored research on 22 October 2025. The draft RTS have been submitted to the Commission for review and, if adopted in their current form, they will apply from 6 June 2026.

A Common Supervisory Action in respect of conflicts of interest in the distribution of financial instruments will be carried out by ESMA and National Competent Authorities during 2026.

From 1 September 2026, the new rules on identifying reference data to be used for in scope OTC interest rate and credit default swaps for the purposes of the transparency requirements apply.

Non-Banks

The European Commission’s targeted consultation on macro-prudential policies for non-bank financial intermediaries (NBFIs) closed on 22 November 2024, and a new macroprudential package for NBFIs is expected to be released in 2026.

Preparations will also begin for the 2027 EU-wide stress test. The EBA noted in its work programme for 2026 that the 2027 stress test may include NBFIs, drawing on the EBA’s expanding work on NBFIs and their interlinkages with the rest of the financial system.

For more information, read our insights here: Non-Banks: European Commission consults on macroprudential policies and the EBA’s 2026 work programme here: EBA Work programme 2026.

Payments

Ireland - National Payments Strategy

Ireland’s National Payments Strategy was published in October 2024 and sets out a number of action items for 2026, including a report on the actions needed to enhance system-wide resilience of payment services due Q1 2026 and a work plan from the Anti-Fraud Forum setting out actions to enhance collaboration in the fight against fraud due Q2 2026. Certain 2025 actions are still outstanding, such as the review as regards whether the CBI should have liquidation powers in relation to payment firms, and the legislation in respect of a shared fraud database. We may see progress on these items in 2026.

Work on the introduction of EU Digital Identity Wallets is also ongoing (as required by the eIDAS Regulation), and the final product will be made available before end 2026.

For more information, read our insights here: National Payments Strategy: Notable Actions / Recommendations.

EU - Revised EU Payment Services Framework and FiDA

The European Parliament and the Council agreed a position on the revised payment services framework, comprised of a directive on payment services and e-money services (PSD3) and a payment services regulation (PSR), on 27 November 2025. Technical work will now continue on the legal texts, with the aim of finalising all for publication in the Official Journal in 2026.

As regards the proposed Regulation on a framework for Financial Data Access (FiDA), trilogue negotiations are ongoing.

EU – Digital Euro Project

The Commission presented its legislative proposals for the digital euro on 28 June 2023. Work is ongoing and the current intention is to have the legislation agreed in H2 2026. In October 2025 the ECB decided to move to the next phase of the digital euro project, and its focus in 2026 will be on three main workstreams: advancing technical readiness, deepening market engagement and supporting the legislative process. If legislation is in place in 2026, a pilot exercise is planned for 2027 and the first issuance of the digital euro could take place in 2029. The ECB Governing Council’s decision on whether to issue a digital euro, and on what date, will only be taken once the legislative act is adopted.

Retail Investment Package

The European Parliament and the Council agreed a position on the Retail Investment Strategy on 18 December 2025. Technical work will now continue on the legal texts, with the aim of finalising all for publication in the Official Journal in 2026.

For more information, read our insights here: Retail Investors and the EU Capital Markets: Commission publishes retail investment package, The European Commission’s Retail Investment Strategy.

Section 110 companies

The Department of Finance published the Funds Review Implementation Plan on 7 October 2025, the output of its Funds Sector 2030 consultation and Funds Sector 2030 Final Report.

The Report recommended that the Department of Finance and the CBI assess what additional measures could be introduced to mitigate any AML / CFT risk in the SPE sector. The Implementation Plan notes that revisions to Ireland's National Risk Assessment for AML/CFT are underway and that the risks of SPEs are being considered as part of those revisions.

The Report also recommended that legislation be introduced to require the Revenue Commissioners to publish a list of all SPVs that avail of the Section 110 framework, and that consideration be given to requiring all Section 110 SPVs to have a legal entity identifier (LEI). The Implementation Plan notes that both of these recommendations are still under consideration by officials, and no timing is given for next steps.

Transaction reporting

ESMA’s call for evidence on a comprehensive approach for the simplification of financial transaction reporting closed on 19 September 2025. The aim of the call for evidence was to gather feedback on opportunities to simplify, better integrate and streamline supervisory reporting. The consultation presented two options for simplification: (i) eliminating overlaps without any change to the current reporting channels; or (ii) creating a unified reporting template based on the ‘report once’ principle to replace multiple reporting frameworks. ESMA intends to publish a final report on the preferred simplification option in Q2 2026. The CBI is also targeting improvements in data reporting in Q2 2026.

For more information, read our insights here: Regulating and supervising well – A more effective and efficient framework.

Please contact a member of our Finance Group or your usual Arthur Cox contact for more information.

The Commission published its legislative proposal on market integration and supervision on 4 December 2025.

ESMA’s call for evidence on a comprehensive approach for the simplification of financial transaction reporting closed on 19 September 2025. The aim of the call for evidence was to gather feedback on opportunities to simplify, better integrate and streamline supervisory reporting.