Authorisation & Licensing in European Union

Key dates

2026-08-25

EBA launched the consultation on three draft RTS.

2026-09-25 Deadline

Deadline at 16:00 CEST to register for the EBA virtual public hearing.

2026-09-30

EBA virtual public hearing scheduled from 10:00 CEST.

2026-11-25 Deadline

Deadline for submitting comments on the consultation.

Suggested considerations

• Firms should assess whether their solo and group-level asset populations capture all entities and activities covered by the CRD amendments, including the potential effect of EU branches and consolidated group assets.
• Compliance and finance teams may wish to reconcile the proposed threshold methodology against regulatory reporting, audited financial statements and internal management information, using a rolling 12-month monitoring process where relevant.
• Investment firms above EUR 5 billion should review the draft reporting templates and instructions and identify data, governance, validation and submission gaps before the RTS become applicable.
• Firms near the EUR 30 billion threshold should model the consequences of credit institution authorisation, including CRD and CRR application, supervisory engagement, capital and liquidity requirements, governance expectations and implementation timelines.
• Groups potentially affected by the group test should consider submitting comments on the geographic scope of assets, treatment of branches, consolidation methodology and any disproportionate effects on cross-border business models.
• Potentially eligible firms may wish to prepare evidence against the proposed waiver factors and engage early with their competent authority, while recognising that a waiver is discretionary and not guaranteed.
• Stakeholders wishing to participate in the EBA public hearing should register by the stated registration deadline and firms wishing to influence the final RTS should submit consultation responses by 25 November 2026.

What changed

The EBA is revising its draft RTS following the 2024 amendments to the Capital Requirements Directive, including clarifications on which entities and assets must be included in the threshold calculation at solo and group level. The package addresses the methodology for calculating total assets against the EUR 30 billion threshold, reporting requirements for investment firms whose total assets exceed EUR 5 billion under Article 55(5) of the Investment Firms Regulation, and the factors competent authorities must consider when deciding whether to grant a waiver under Article 8a(7) of the CRD.

Key dates

2026-03-01

EBA central validation function for pro forma initial margin models under EMIR became operational

2026-08-05

Publication date of the EBA consultation on the reporting framework for validation and monitoring of ISDA SIMM

2026-11-02 Deadline

Deadline for submission of comments to the EBA consultation on ISDA SIMM reporting

2026-12-31

Indicative target for EBA adoption of a Decision establishing the collection of relevant information for ISDA SIMM validation reporting by end of 2026

2027-03-31

Expected release of the final EBA technical package version 4.4, Phase 2, incorporating the new reporting requirements

2027-12-31

Expected first reporting reference date for ISDA SIMM-related information under the new framework

2028-03-31

Expected first quarter of 2028 window for collection of initial ISDA SIMM validation and monitoring data based on the December 2027 reference date

Suggested considerations

• Compliance teams may wish to review the consultation paper, IMMV reporting instructions and templates to understand the proposed data fields, frequency and proportional thresholds for ISDA SIMM-related reporting under EMIR.
• Firms using or planning to use ISDA SIMM for non-centrally cleared OTC derivative initial margin calculations should consider whether they will fall under the more intensive or lighter reporting category based on the significance of their OTC trading activity and assess system readiness for the expected December 2027 reference date reporting in Q1 2028.
• Risk and collateral management functions may wish to map the proposed reporting requirements to existing SIMM backtesting, model performance, risk factor sensitivity and margin monitoring processes to identify gaps and necessary enhancements.
• Regulatory reporting and IT teams should consider planning for integration of the new IMMV reporting templates into their infrastructure, taking into account the incorporation of these requirements into the EBA technical package version 4.4, Phase 2 and the planned final technical release in March 2027.
• Legal and regulatory affairs teams may wish to assess the implications of Article 11(12a) EMIR and EMIR 3 for their use of pro forma initial margin models, including governance around EBA’s central validation function and associated fee obligations, and prepare internal feedback on the consultation by the 2 November 2026 deadline.
• Firms intending to rely on ISDA SIMM should consider engaging with the consultation process to comment on the proportionality of the proposed reporting frequency and content, especially where OTC trading activity is limited but compliance costs could be significant.
• Supervisory liaison teams at affected groups may wish to coordinate with competent authorities to understand how the EBA’s data collection will be used in authorisation and ongoing supervision of ISDA SIMM-based initial margin models.

What changed

The consultation sets out a proposed standardised reporting framework for counterparties seeking validation to use ISDA SIMM as a pro forma initial margin model under Regulation (EU) No 648/2012 (EMIR) as amended by Regulation (EU) 2024/2987 (EMIR 3). From 1 March 2026, the EBA acts as the central validator of the elements and general aspects of pro forma initial margin models pursuant to Article 11(12a) EMIR, and this proposal defines the information that must be submitted on a regular basis to enable validation and ongoing performance monitoring.

Key dates

2022

- ESMA’s original peer review identified shortcomings in the supervision of cross-border activities and issued recommendations to strengthen authorisation, supervision, cooperation, and enforcement

September 2025

- ESMA’s 2026 work programme says the follow-up on the peer review of cross-border provision activities of investment firms was expected to be launched around this time

20 July 2026

- ESMA published the follow-up report on the supervision of cross-border activities of investment firms

TBD (est. 2028)

- ESMA indicated in the earlier peer review context that it expected to carry out a follow-up assessment in two years to review improvements, which aligns with a later-stage review cycle

Suggested considerations

• Review cross-border business plans for all passported investment services and ensure they are supported by clear governance, staffing, systems, and client-service arrangements.
• Map all outbound cross-border activities by jurisdiction, client type, product type, and distribution channel so that compliance can identify where supervisory risk is highest.
• Strengthen controls over retail cross-border activity, including marketing, suitability/appropriateness, complaints handling, and local conduct requirements in each host market.
• Prepare to provide supervisors with more granular evidence of how cross-border risks are identified, monitored, escalated, and mitigated.
• Ensure internal reporting can distinguish cross-border revenue, complaints, incidents, and enforcement exposure from domestic business lines.

What changed

• - ESMA reports that NCAs have strengthened authorisation assessments by placing greater emphasis on firms’ cross-border business plans and intentions before granting or maintaining permissions.
• NCAs are increasingly using data-driven and risk-based supervision to monitor cross-border activity and calibrate supervisory attention to the scale, nature, and complexity of the activity.
• NCAs have expanded cooperation and enforcement, including more targeted supervisory actions and reporting of enforcement cases where relevant.
• ESMA expects NCAs with significant outbound cross-border activity to ensure that their supervisory and enforcement approaches are proportionate to the level of risk and business volume.
• The report reinforces that cross-border activity should be treated as a distinct supervisory risk area, not merely as an incidental extension of domestic supervision.

Key dates

2026-07-17

EBA published the final draft RTS and ITS on material acquisitions, material transfers, mergers and divisions under the CRD

Suggested considerations

• Compliance teams may wish to map proposed acquisition, transfer, merger, and division workflows against the draft minimum-information template and identify which data points are already held by competent authorities.
• Firms may wish to review whether planned intra-group transactions could qualify for the simplified treatment described in the draft RTS, including any discretion not to assess certain transactions.
• Groups planning mergers or divisions may wish to check which documentation can be reused from Company Law Directive processes and where CRD-specific supplements will still be needed.
• Legal and regulatory teams may wish to assess how multiple-notification scenarios are handled today and whether internal controls need to align with the proposed harmonised terminology and coordination timelines.
• Firms may wish to prepare for supervisory coordination across jurisdictions by identifying the authorities likely to be involved in cross-border transactions and the likely sequence of notifications.

What changed

The EBA’s final draft RTS would specify the minimum information to be provided for material acquisitions, material transfers of assets and liabilities, mergers, and divisions, together with a common assessment methodology for the prudential scrutiny of those transactions. The draft RTS also streamline notifications by excluding information already held by competent authorities and by allowing reliance on documentation prepared under Directive (EU) 2017/1132 (the Company Law Directive) for mergers and divisions.

Key dates

24 June 2013

– Earlier ESA Board of Appeal case law clarifies that appeals are reserved for “decisions” that produce binding legal effects and that the Board lacks jurisdiction over acts that are not such decisions, including certain complaints‑handling outcomes

21 July 2022

– In Decision BoA‑D‑2022‑01 (appeal “C” v EBA), the Board of Appeal holds that an appeal against EBA’s decision not to initiate an investigation into alleged non‑application of EU law in relation to payment accounts is inadmissible under Article 60(2) of Regulation (EU) No 1093/2010

16 July 2026

– The ESAs’ Joint Board of Appeal issues the present decision dismissing, as inadmissible, an individual’s appeal against EBA’s decision not to open an investigation into a possible breach of Union law by the Finnish FIN‑FSA in relation to a bank account closure

Suggested considerations

• Review internal complaints‑handling and escalation procedures to ensure that disputes over account closures and related supervisory decisions are managed through national complaint bodies and courts, rather than assuming EBA or Board of Appeal review will be available.
• Update legal and compliance guidance notes to reflect that EBA’s decision whether to initiate a breach‑of‑Union‑law investigation is discretionary and generally not subject to appeal before the Board of Appeal, limiting external escalation avenues.
• Train front‑office, customer‑service and complaints staff to provide accurate information to customers about available redress routes, emphasising national ombudsman, national competent authority and judicial mechanisms rather than ESMA/EBA appeals.
• For groups operating across the EU, map national complaint and judicial mechanisms for account closures in each jurisdiction and integrate them into group‑wide conduct risk frameworks and customer communication templates.
• Monitor further ESA and EU court case law on which ESA acts are susceptible to appeal before the Board of Appeal, and adjust litigation and escalation strategies accordingly.

What changed

• - The decision clarifies that EBA’s decision whether or not to initiate an investigation into a possible breach or non‑application of Union law under Article 17 of Regulation (EU) No 1093/2010 is a...
• The Board of Appeal confirms that a decision not to open a Union law breach investigation does not constitute a reviewable “decision” for the purposes of Article 60(1)–(2) of the ESA Regulations and...
• The Board of Appeal confirms that individual complaints about account closures and associated supervisory handling remain primarily within the remit of national competent authorities and national...
• The decision reiterates that only certain categories of ESA acts that produce binding legal effects (for example, decisions adopted under Articles 17, 18 or 19 of the ESA Regulations, and acts within...
• The outcome aligns with prior Board of Appeal and EU court case law confirming that persons outside the specific categories listed in Article 17(2) of the ESA Regulations have no right of appeal to...

Key dates

30 April 2023

- ESMA’s withdrawal of recognition decisions for six Indian CCPs, including CCIL, took effect under EMIR, prohibiting EU clearing members and trading venues from using those CCPs for EU‑regulated clearing activity

Earlier 2026

- ESMA and the Reserve Bank of India sign a Memorandum of Understanding establishing supervisory cooperation arrangements for Indian CCPs, including CCIL

30 June 2026

- ESMA’s decision recognising CCIL as a Tier 1 third‑country CCP under EMIR takes effect, and CCIL is added to ESMA’s updated list of recognised TC‑CCPs

Suggested considerations

• Confirm and document that CCIL now appears on ESMA’s official list of recognised third‑country CCPs and that its status is Tier 1 under EMIR, updating internal CCP eligibility lists and counterparty approval registers accordingly.
• Review and update internal clearing policies, procedures and governance documents to reflect that EU entities may again clear eligible products through CCIL, subject to EMIR and firm‑specific risk appetite.
• Reassess and formally approve CCIL within the firm’s CCP due‑diligence framework, including credit risk, operational risk, legal risk and jurisdictional risk assessments, taking account of the RMU with RBI and the Tier 1 classification.
• Update EMIR compliance mappings to ensure that trades cleared via CCIL are correctly treated for clearing obligation, risk‑management, reporting and collateral requirements, and that no activity is undertaken through non‑recognised CCPs in India.
• Coordinate with front‑office, clearing operations and collateral management teams to re‑open or adjust clearing access to CCIL (e.g. membership arrangements, client clearing channels, account structures, margin and collateral workflows).

What changed

• - CCIL is formally recognised as a Tier 1 third‑country central counterparty (TC‑CCP) under Regulation (EU) No 648/2012 (EMIR), allowing it to offer clearing services to EU clearing members and EU...
• The recognition is contingent on an equivalence decision adopted by the European Commission for the Indian regulatory framework applicable to CCPs under EMIR Article 25.
• ESMA has assessed and confirmed effective supervision and enforcement by the Reserve Bank of India (RBI) over CCIL as a prerequisite for recognition.
• ESMA and RBI have put in place cooperation arrangements, formalised through a Memorandum of Understanding, to support ongoing supervisory coordination over CCIL’s activities that affect EU...
• CCIL is now included in ESMA’s updated list of recognised third‑country CCPs, clarifying that EU firms may use CCIL’s clearing services while complying with EMIR’s clearing and risk‑management...

Key dates

26 June 2026

- ECB announces the comprehensive review of around 130 supervisory guidance publications, confirms discontinuation of about 40 outdated documents, and signals targeted and in‑depth revisions for the remaining guidance set

Q3 2026 (approx.)

- Revised **Guide to the internal capital adequacy assessment process** is expected to be published “shortly” after the press release, incorporating clarified treatment of the management buffer and its relationship to Pillar 2 guidance

Q3–Q4 2026 (approx.)

- Removal of supervisory expectations on **credit conversion factor (CCF)** from the **Guide to internal models** and the removal of **CVA references** from the **Guide on assessment methodology** and the **Guide on materiality assessment** are implemented as part of the ongoing review and alignment with EBA guidance and CRR III

Q4 2026–2027 (TBD)

- **Public consultations** will be launched on those guidance documents identified as needing substantial revision, ahead of finalising the updated versions

Q1 2027

- Publication of the new **report on good practices in governance and risk culture**, replacing the existing Draft guide on governance and risk culture, following finalisation of the revised EBA Guidelines on internal governance

Suggested considerations

• Review the ECB press release and associated lists of discontinued publications to identify any ECB guides, reports, letters or methodologies currently referenced in your internal policies, risk frameworks or model documentation that are now labelled as discontinued.
• Update internal policy inventories, regulatory mapping and compliance registers to reflect the new classification of ECB supervisory guidance as non‑binding and to distinguish clearly between binding EU/national law and non‑binding ECB expectations.
• For banks using the ICAAP Guide, perform a gap analysis of capital planning and management buffer practices against the forthcoming clarified expectations, ensuring internal documentation clearly differentiates management buffers from Pillar 2 requirements and guidance.
• For institutions using internal models for credit risk, remove any reliance on the ECB’s former CCF expectations by re‑mapping modelling policies and documentation to forthcoming EBA guidelines on credit conversion factors and to CRR/CRD provisions, once those guidelines are finalised.
• For risk and finance functions, review the CVA treatment in internal capital and risk methodologies to verify alignment with CRR III and ensure that internal references to ECB guidance (assessment methodology, materiality assessment) are updated to reflect the removed CVA content.

What changed

• - The ECB is conducting a comprehensive review of around 130 supervisory publications (guides, reports, letters, methodologies) to assess their relevance, effectiveness and clarity and to align them...
• Approximately 40 supervisory documents have been classified as outdated, superseded or no longer relevant and have been formally discontinued, with the texts remaining accessible but clearly labelled...
• The ECB has updated its classification of supervisory guidance documents to emphasise explicitly that they are non‑binding, do not create new legal obligations and do not replace binding EU or...
• The Guide to the internal capital adequacy assessment process (ICAAP Guide) will be revised to clarify supervisory expectations on the management buffer, explicitly positioning it as the bank’s own...
• The ECB has removed all content on supervisory expectations for the credit conversion factor (CCF) from the Guide to internal models, in anticipation of forthcoming EBA guidelines on CCF, thereby...

Key dates

03 January 2025

– ESG Ratings Regulation (ESGRR) enters into force, starting the formal legislative timeline and triggering preparatory obligations for future ESG rating providers

02 July 2026

– ESGRR applies and the main substantive requirements become effective; from this date entities have one month to notify ESMA of their intention to apply for authorisation or registration as ESG rating providers

Suggested considerations

• Map all existing and planned ESG rating products against ESMA’s clarified concept of a “defined ranking system” and update methodologies, scales, and disclosures to ensure they meet ESGRR and Q&A expectations.
• For ESG rating providers operating before 02 July 2026, develop and execute a documented transitional compliance plan that aligns governance, methodologies, data controls and transparency with ESGRR, ensuring timely notification to ESMA within one month from 02 July 2026.
• For entities intending to launch ESG rating activities after ESGRR entry into force, prepare and submit complete authorisation or registration files to ESMA before commencing rating activity, incorporating the Q&A guidance on initial registration requirements.
• Establish or enhance a formal process to identify, assess and record “material changes to registration information” for ESG rating providers, and implement controls to ensure ESMA is notified within required timelines before or immediately after such changes, as specified in the Q&A.
• Review and update MAR compliance frameworks, with particular focus on market soundings procedures, to incorporate ESMA’s expectations on the scope, independence, and documentation of the annually conducted audit required under Commission Delegated Regulation (EU) 2016/957.

What changed

• - ESMA clarifies what constitutes a “defined ranking system” under the EU ESG Ratings Regulation (ESGRR), including when rating scales, score bands or league tables will be regarded as a ranking...
• ESMA sets out transitional provisions for existing ESG rating providers active before ESGRR application, detailing conditions and timelines under which they may continue operating while completing...
• ESMA explains how ESG rating providers established after the ESGRR date of entry into force must comply, including the need to obtain authorisation/registration before commencing activity in the EU...
• ESMA defines what qualifies as “material changes to registration information” for ESG rating providers under ESGRR, indicating the types of changes (e.g.
• Under MAR and Commission Delegated Regulation (EU) 2016/957, ESMA clarifies expectations regarding the annually conducted audit of market soundings arrangements, including scope, independence of the...

Key dates

Q2 2026

- ESMA reviews responses to assess potential regulatory adjustments under CRA Regulation

31 May 2026 Deadline

- Deadline for submitting evidence-based responses, including quantitative data and market examples, via ESMA's online consultation form in docx format

Suggested considerations

• Review the full Call for Evidence document and annexes for specific questions on restricted subscription (Annex I) and private credit ratings (Annex II).
• Prepare and submit evidence-based responses addressing key areas: use cases/benefits vs. public ratings, contracting/distribution parties, analytical/governance comparability, transparency impacts, risks/mitigations, and multi-CRA practices.
• Provide quantitative data, concrete examples, and rationale; indicate specific questions and alternatives considered.
• Submit online by 31 May 2026 using the docx reply form; note responses may be published unless confidentiality requested.

What changed

There are no immediate regulatory changes; this is a fact-finding call for evidence to assess whether adjustments to the CRA Regulation are needed. ESMA seeks views on definitions (e.g., restricted subscription ratings as selectively distributed to limited subscribers with economic interest; private ratings excluded from CRA scope if not distributed to >150 persons), production processes, governance comparability to public ratings, distribution risks, and market needs. Potential future outcomes include enhanced clarity on CRA Regulation application, but none are confirmed yet.

Key dates

27 February 2026

- Publication date of new/updated Q&As on crowdfunding, MiCA, EMIR, and Transparency Directive

1 January 2027

- Effective date for new Q&A on IFRS 18 & APMs interaction (2775) and updates to APM-related Q&As (1868, 1874, 1875, 1877)

31 December 2027 Deadline

- Deadline for trading platform operators under MiCA to ensure compliant white papers for legacy tokens (related context from prior MiCA Q&As)

Suggested considerations

• Review and update policies: CASPs must align withdrawal processes (Art. 75), overhead calculations, client fund interest handling, fiat payout mechanisms, offer/placing distinctions, and trading platform compliance with Title II.
• Crowdfunding firms: Assess and document use of nominee structures per Q&A 2601.
• CCPs/counterparties: Implement AAR reporting for thresholds, representativeness (with subcategory identification and trade reporting examples), and stress testing; reference ESMA's supervisory briefing for compliance models.
• Issuers/reporters: Revise APM disclosures for IFRS 18 compatibility, ensuring prominence, clear definitions, and consistent presentation inside/outside statements effective 1 January 2027.
• General: Integrate Q&As into compliance training, internal audits, and NCA reporting; monitor ESMA's Questions and Answers section for full texts.

What changed

• - Crowdfunding: New Q&A (2601) on use of fiduciary (nominee) structures in equity crowdfunding, clarifying permissible structures for service providers.
• MiCA (CASPs): Updates include clarification on withdrawal requirements under Article 75 (2320); fixed overheads calculation (2349); interests from client funds at credit institutions (2486); fiat...
• EMIR (CCPs): New Q&As on AAR threshold calculation (2418, 2779), AAR representativeness obligation (2776, 2777), and AAR stress testing (2778), building on ESMA's supervisory briefing for...
• Transparency Directive: New Q&A (2775, effective 1 January 2027) on IFRS 18 and APMs interaction; updated Q&As (effective 1 January 2027) on measures in/outside financial statements (1868), interim...

Key dates

11 February 2026 Deadline

– Deadline for entities to register and submit requests to participate in the selection procedure

Early July 2026

– ESMA to adopt reasoned decision on selected applicant

1 September 2026

– Mandatory use of new OTC derivatives identifying reference data (Commission Delegated Regulation (EU) 2025/1003)

1 March 2027

– Single application date for all derivatives-related changes: amendments to RTS 2, Package Order RTS, and OTC derivatives CTP data requirements

Suggested considerations

• *For prospective CTP applicants:
• *For trading venues and data contributors:
• trade OTC derivatives data to the selected CTP from 1 March 2027
• minute maximum delay for real-time dissemination
• *For market participants:

What changed

• The regulatory framework introduces several substantive requirements:
• CTP Mandate: The selected provider will consolidate post-trade data from trading venues and other data contributors into a unified electronic stream, enabling market participants to access accurate,...
• Data Scope: The CTP will collect and disseminate OTC derivatives data in accordance with ESMA's Final Report on transparency for derivatives, with specific technical standards governing pre- and...
• Technical Standards: ESMA has finalized regulatory technical standards (RTS) prescribing data quality requirements for CTPs and data contributors.
• Implementation Date: All derivatives-related changes, including amendments to RTS 2 (derivatives transparency) and the OTC derivatives CTP data requirements, are scheduled for 1 March 2027.