March 2026 Regulatory Roundup

MIFID and MIFIR

ESMA publishes list of supplementary deferrals for sovereign bonds

On 19 February 2026, ESMA, together with National Competent Authorities (NCAs), has agreed supplementary deferrals that may be applied on top of the standard MIFIR deferral regime for sovereign bonds.

ESMA and all NCAs, except the National Bank of Slovakia (NBS), have decided to allow the following supplementary deferrals: for trades of a medium size on liquid bonds in Group 1, the publication of the volume may be omitted until the end of the trading day.

The supplementary deferrals should start applying on 4 May 2026.

As these decisions concern sovereign bond markets, which are critical and specific to each EU Member State, it was necessary to conduct consultations with the relevant regulatory bodies and financial institutions to arrive to a common approach.

The consultations resulted in a short time between the publication of the deferrals list and the start of the new regime on 2 March 2026, potentially causing implementation issues for trading venues, investment firms and Approved Publication Arrangements (APAs).

Therefore, a sufficient implementation period should be provided. In addition, to ensure a consistent application of the transparency regime, supplementary deferrals should apply from the same date, regardless of any differences in the timing of individual decisions adopted by Member States (for sovereign bonds issued by Member States), and the ESMA decision (for other sovereign bonds).

 

ESMA simplifies MIFID II/ MIFIR obligations on market data

On 23 February 2026, ESMA  withdrew its guidelines on the MIFID II/ MIFIR obligations on market data, effective immediately, reflecting its ongoing commitment to simplifying rules and reducing unnecessary compliance burdens for market participants.

The decision aligns the framework with the newly applicable regulatory technical standards on the obligation to make market data available to the public on a reasonable commercial basis (RTS on RCB).

The RTS on RCB entered into force on 23 November 2025. Market data providers authorised before that date benefit from a transition period until 22 August 2026. The transition period serves solely to allow market data providers to align existing contractual arrangements with the new requirements in the RTS.

 

EBA and ESMA launch a consultation on the revised suitability assessment framework for banks and investment firms

On 25 February 2026,the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) launched  a consultation on the revised joint Guidelines on the assessment of the suitability of members of the management body and key function holders. In parallel, the EBA is consulting on draft Regulatory Technical Standards (RTS) specifying the documentation and information that large institutions must submit to competent authorities.

Together, these elements form the Suitability Package, which aims to harmonise suitability assessments and promote supervisory convergence across the EU. The consultations run until 25 May 2026.

 

ESMA issues a supervisory briefing on algorithmic trading

On 26 February 2026, ESMA published a supervisory briefing to support consistent supervision of algorithmic trading across the EU.

The briefing provides National Competent Authorities (NCAs) with practical tools and clarified expectations for supervising firms engaged in algorithmic trading under MIFID II. It focuses on key areas where supervisory practices have diverged, including pre-trade controls, governance arrangements, testing frameworks and outsourcing of algorithmic trading systems.

Given the extended use of artificial intelligence in algorithmic trading, the briefing also touches upon these emerging technological developments, outlining considerations for the use of AI. This section aims to help supervisors assess new risks and ensure that firms adopt robust and responsible approaches when deploying advanced technologies in their trading operations.

As a non-binding convergence tool, the briefing complements the existing requirements and supports NCAs in taking a harmonised approach to oversight.

ESMA will share the supervisory briefing with NCAs to support day to day supervision. ESMA will continue to monitor market and technological developments and may update the briefing or develop further convergence tools as needed.

 

ESMA publishes the results of the annual transparency calculations for equity and equity-like instruments

On 27 February 2026, ESMA published the results of the annual transparency calculations for equity and equity-like instruments, which will apply from 6 April 2026.

The calculations made available include:

• the liquidity assessment as per Articles 1 to 5 of CDR 2017/567;
• the determination of the most relevant market in terms of liquidity as per Article 4 of CDR 2017/587 (RTS 1);
• the determination of the average daily turnover relevant for the determination of the pre-trade and post-trade large in scale thresholds;
• the determination of the average value of the transactions and the related the standard market size; and
• the determination of the average daily number of transactions on the most relevant market in terms of liquidity relevant for the determination of the tick-size regime.

Market participants are invited to monitor the release of the transparency calculations for equity and equity-like instruments on a daily basis to obtain the estimates for newly traded instruments and the four-weeks calculations applicable to newly traded instruments after the first six-weeks of trading.

The full list of assessed equity and equity-like instruments is available through ESMA’s FITRS in the XML files with publication date from 27 February 2026 (see here) and through the Register web interface (see here).

The transparency requirements are based on the results of the annual transparency calculations published from 27 February 2026 for equity and equity-like instruments will apply from 6 April 2026 until 4 April 2027. The next annual transparency calculations for equity and equity-like instruments, to be published by 1 March 2027, will become applicable from 5 April 2027.

 

EMIR
Delegated Regulation specifying requirements for EMIR 3 active account requirement published in Official Journal

On 6 February 2026, Delegated Regulation (EU) 2026/305 supplementing the European Market Infrastructure Regulation (EU) No 648/2012 (EMIR) was published in the Official Journal of the European Union.

The Delegated Regulation, which was first adopted on 29 October 2025, sets out the regulatory technical standards (RTS) for the new active account requirement introduced under Article 7a of EMIR 3. The RTS follow the European Securities and Markets Authority 2024 consultation and specify the operational conditions, the representativeness obligations and the reporting requirements for the active account requirement. In particular, the RTS require CCPs to:

• Demonstrate operational capability, including appropriate contractual arrangements, policies and procedures, IT connectivity, internal systems and sufficient resources capable of supporting high volume clearing at short notice.
• Conduct annual stress testing of the operational conditions of the active account to evidence ongoing operational readiness.
• Comply with the “representativeness obligation” by following the prescribed methodology for selecting relevant subcategories of euro and Polish zloty denominated interest rate derivatives and short-term interest rate derivatives to be cleared through the active account.
• Meet periodic reporting obligations, with firms required to report every six months and the first report is due six months after the Delegated Regulation enters into force.

The Delegated Regulation enters into force on 26 February 2026, 20 days following its publication in the Official Journal.

 

European Commission consults on draft Delegated Regulation on EBA fees for validation of pro forma models under EMIR 3

On 12 February 2026, the European Commission launched a consultation on a draft Delegated Regulation supplementing the European Market Infrastructure Regulation (EU) No 648/2012 (EMIR) as amended by EMIR 3 (EU) No 648/2012).

The draft Delegated Regulation specifies the fees to be charged by the European Banking Authority to counterparties for the validation of pro forma models, and any changes to those models, used by those counterparties to mitigate the risk of their uncleared over-the-counter derivatives portfolios. It also specifies both the one-off fee charged for validating any new pro forma models and the annual fee charged for validating changes to already validated pro forma models.

The deadline for feedback is 12 March 2026.

 

ESMA publishes a supervisory briefing on the AAR representativeness obligation

On 20 February 2026, ESMA published a supervisory briefing on the representativeness obligation linked to the active account requirement (AAR).

The briefing sets out ESMA’s supervisory expectations for how counterparties should comply with and report on the AAR representativeness obligation. It provides guidance and promotes supervisory convergence for the supervision of counterparties subject to the AAR, an issue which has attracted particular scrutiny.The document explains how counterparties should identify the most relevant subcategories for the purpose of the AAR representativeness obligation, how they should report trades, and includes an example of compliance with reporting of the representativeness obligation.

The representativeness obligation requires relevant counterparties to clear a number of trades in their active accounts open at EU CCPs. These trades must be on the most relevant subcategories of derivatives and reflect the activity those counterparties currently clear at Tier 2 CCPs.

Counterparties subject to the AAR representativeness obligation are expected to follow the guidance included in this supervisory briefing to comply with their regulatory obligations.

 

ESMA consults on guarantees as CCP collateral and on certain aspects of CCP investment policy

On 23 February 2026, ESMA launched a public consultation following the review of the European Market Infrastructure Regulation (EMIR 3).

ESMA is encouraging all interested stakeholders, including non-financial counterparties (NFCs), to share their views about:

• the relevant conditions under which public guarantees, public bank guarantees and commercial bank guarantees may be accepted by central counterparties (CCPs) as collateral;
• the conditions under which debt instruments can be considered as eligible financial instruments for the purpose of CCP investment policy; and
• the highly secured arrangements in which emission allowances posted as margins or default fund contributions can be deposited.

EMIR 3 introduces several measures to make EU clearing services and EU CCPs more efficient, competitive and accessible. These include permanent broadening of both the type of guarantees that may be accepted by CCPs as eligible collateral and the scope of entities that may use them, now also covering clients of CCPs that are NFCs.

The deadline for responses is 30 April 2026. Based on the responses received, ESMA will prepare the final report and submit the final draft technical standards to the European Commission by the end of 2026.

 

ESMA sets out clearing thresholds under EMIR 3

On 25 February 2026, ESMA published its draft Regulatory Technical Standards (RTS) setting out new and revised clearing thresholds (CTs) under EMIR 3.

The proposed thresholds ensure continuity in the coverage of systemic risk in over‑the‑counter (OTC) derivative markets while avoiding unnecessary complexity and additional compliance burdens for market participants. To reduce unnecessary complexity and burden, ESMA has:

• retained five CTs categories, avoiding additional categories or more granular thresholds;
• clarified the timing of calculation of positions, allowing counterparties to apply the new CTs during their usual assessment window or earlier, if they wish to benefit sooner from the new regime;
• enhanced stability and visibility in the mechanism triggering the review of the CT.

Additionally, ESMA suggests increasing the thresholds in the commodity, interest rate and credit derivatives asset classes compared to what was proposed in the Consultation Paper published in April 2025. These adjustments reflect recent price developments, inflation and other relevant market factors while ensuring a proportionate coverage of the systemic risk.

Although respondents to the consultation requested broader recognition of structured hedging arrangements, including virtual power purchase agreement (VPPAs), ESMA confirms that any change to the hedging exemption would require amendments at Regulation level and therefore cannot be addressed in these RTS.

As a reminder, entities active in OTC derivative markets and exceeding one or more CTs are subject to additional requirements, notably the clearing obligation.

ESMA has submitted the final draft RTS to the European Commission for endorsement, following which they will be subject to adoption.

ESMA consults on post-trade risk reduction services under EMIR 3

On 26 February 2026, ESMA launched a consultation on the requirements for how post-trade risk reduction (PTRR) services can benefit from the conditioned exemption from the clearing obligation introduced under EMIR 3.

ESMA is seeking feedback on several elements of the framework for the PTRR service providers to operate under the exemption, including transparency towards participants, algorithm safeguards, execution of PTRR exercises, controls to be performed and record keeping.  Finally, the consultation describes how monitoring should be conducted by the relevant authorities.

The draft Regulatory Technical Standards (RTS) set out the requirements that PTRR services must meet for over the counter (OTC) derivative transactions to qualify for the exemption from the clearing obligation. They focus on the three main service types in use in the market today: compression, portfolio rebalancing and basis risk optimisation.

The RTS are designed to ensure that the exemption is not used to circumvent the clearing obligation, while considering simplification and burden reduction objectives by leveraging on current practices since the start of the EMIR 3 regime.

Stakeholders are invited to provide feedback on the proposals set out in the consultation by 20 April 2026. The draft RTS will be submitted to the European Commission in Q4 2026.

ESMA Updates its Q&As on OTC derivatives, central counterparties and trade repositories (EMIR) – CCPs On 27 February 2026, ESMA updated its Q&As on OTC derivatives, central counterparties and trade repositories (EMIR) – CCPs for the following topics: AAR threshold calculation (2418) AAR representativeness obligation (2776) AAR representativeness obligation (2777) AAR stress testing (2778) AAR threshold calculation (2779)

The Q&As clarify; which contracts to assess for the threshold calculation, reporting obligation aspects of the representativeness obligation, the timing of the first stress testing and reporting, and calculation of derivatives contracts for the purposes of the threshold calculation to exclude intragroup transactions for counterparties belonging to a group subject to consolidated supervision in the union.

EMIR and SFTR – Trade repositories

ESMA sanctions REGIS-TR for serious breaches of organisational obligations

On 19 February 2026, ESMA fined the trade repository (TR) REGIS-TR, S.A. a total of EUR 1,374,000 for seven infringements under EMIR and the Securities Financing Transactions Regulation (SFTR).

While ESMA has sanctioned EMIR breaches in the past, this is the first enforcement case involving SFTR breaches and the highest fine imposed by ESMA on a trade repository so far. ESMA has also issued a public notice and requires REGIS-TR to bring ongoing infringements to an end.

It is important for TRs to comply with their obligations under EMIR and SFTR to ensure the quality of the TR data and protect the stability, integrity and trustworthiness of EU financial markets. The services offered by Regis-TR under EMIR and SFTR were affected by the serious issues identified by ESMA, which in particular undermined the correct implementation of the new SFTR reporting regime and compromised the confidentiality of TR data.

ESMA found that REGIS-TR did not comply with key organisational obligations laid down in EMIR and SFTR relating to adequate policies and procedures, organisational structure, and operational risk, as well as specific requirements related to confidentiality and misuse of the information.

The seven breaches specifically relate to:

• deficiencies in REGIS-TR’s policies and procedures under both EMIR and SFTR leading, among other things, to a lack of clarity regarding the roles and responsibilities of the governing bodies;
• shortcomings in REGIS-TR’s organisational structure which did not ensure continuity and orderly functioning of the TR in the performance of its services and activities in relation to SFTR;
• the failure by REGIS-TR to identify sources of operational risk and minimise them through the development of appropriate systems, controls and procedures both in relation to EMIR and SFTR;
• the failure by REGIS-TR to ensure the confidentiality, integrity and protection of information received under EMIR;
• the failure by REGIS-TR to prevent any misuse of information received and maintained in its systems under EMIR.

The breaches were found to have resulted from negligence on the part of REGIS-TR. In calculating the fine, ESMA considered aggravating and mitigating factors provided for in EMIR.

ESMA also required REGIS-TR to bring the three infringements that have not been remediated yet (related to policies and procedures under EMIR and SFTR and organisational structure for business continuity under SFTR) to an end.

 

Contracts for differences 

ESMA reminds firms of their obligations under CFD product intervention measures amid rising offerings of perpetual futures

On 24 February 2026, ESMA issued a Public Statement reminding firms of their obligation to assess whether newly offered products fall within the scope of existing product intervention measures on contracts for differences (CFDs).

The statement responds to the increased offering of derivatives, often marketed as perpetual futures or perpetual contracts, that provide leveraged exposure to underlying values, including crypto-assets such as Bitcoin. These financial instruments are likely to fall within the scope of the existing national product intervention measures on CFDs adopted by national competent authorities.

Where these derivatives meet the definition of a CFD, they are subject to the applicable product intervention requirements, including leverage limits, a mandatory risk warning, a margin close-out and negative balance protection, and the prohibition of monetary and non-monetary benefits.

The statement also reminds firms that:

• given their complexity, derivatives require a narrow target market, supported by an aligned distribution strategy;
• when providing non-advised services, an appropriateness assessment must be carried out in accordance with the relevant requirements for complex financial instruments; and
• firms should take appropriate steps to identify, prevent, or manage conflicts of interest that may arise from the offering of these products.

 

Shareholder Rights Directive

European Commission consults on evaluation and review of Shareholder Rights Directive

On 11 February 2026, the European Commission launched a call for evidence and a consultation seeking views on its planned evaluation and potential review of the Shareholder Rights Directive (Directive 2007/36/EC, as amended by Directive (EU) 2017/828) (SRD).

The SRD aims to protect and empower shareholders of listed companies by ensuring they have a say in the companies they invest in, and that their interests are represented and respected. The European Commission’s initiative seeks to reduce fragmentation across EU capital markets and tackle longstanding inefficiencies, administrative burdens and financial costs faced by issuers, investors and intermediaries. The review is framed around potential simplification, digitalisation and streamlining measures to improve the functioning of the single market.

The consultation invites feedback from issuers, share investors (including retail investors), financial intermediaries, other financial market actors, Member State authorities, non-governmental organisations and the general public. In particular, the European Commission is seeking views on: (i) the challenges and shortcomings of the current SRD; (ii) the existing barriers to the efficient functioning of the market which hold back intra-EU investment; and (iii) the possible solutions and changes to the SRD that would help unlock investment, increase Europe’s competitiveness, streamline and digitalise processes, simplify rules and reduce administrative and financial burdens.

The deadline for comments on both the consultation and call for evidence is 6 May 2026.

The evaluation of the SRD will be conducted back-to-back with an impact assessment, which will guide the European Commission’s policy decision and form the basis for a decision on whether the framework should be revised. The European Commission is expected to adopt a legislative proposal revising the current SRD in Q4.

 

Market Abuse Regulation 

ESMA seeks input to streamline and simplify its market abuse guidelines

On 19 February 2026, ESMA launched a consultation proposing amendments to its Market Abuse Regulation (MAR) guidelines on the delay in the disclosure of inside information.

The proposals align the guidelines with the disclosure regime as amended by the Listing Act, ensuring issuers face fewer administrative burdens while benefiting from clearer requirements.

From June 2026, issuers will no longer be required to immediately disclose inside information related to protracted processes before their completion. As a result, ESMA is proposing to remove from the current guidelines the legitimate interests for delayed disclosure connected to such protracted processes.

It also identifies additional legitimate interest for delaying disclosure, including situations where a public authority requests non-disclosure of inside information, where the issuer requires more time to collect information, or where the issuer is involved in several procurement processes for similar contracts.

ESMA proposes to eliminate the section about the “no misleading the public” condition, as the Listing Act removed it from MAR. Instead, the Listing Act requires that a delayed disclosure must not contradict the issuer’s latest public announcement on the same matter.

The consultation close on 29 April 2026. Based on the responses received, ESMA will publish a final report in Q4 2026.

 

Markets in Crypto Assets (MiCA)

ESMA Publication on MiCA Complaints-Handling Procedures (Article 108)

On 10 February 2026, ESMA published a consolidated list of links to national competent authorities’ complaints-handling procedures established under Article 108 of Regulation (EU) 2023/1114 on Markets in Crypto-Assets (MiCA). The publication provides a centralized reference point enabling clients, consumer associations, and other stakeholders to submit complaints concerning potential breaches of MiCA by crypto-asset service providers, issuers, and other regulated entities.

Article 108 requires competent authorities to implement accessible complaint submission mechanisms and publish information on how complaints may be filed, including electronic submission options. ESMA’s initiative enhances transparency and facilitates consistent supervisory access across Member States, supporting effective enforcement of MiCA’s investor protection framework.

The list also indicates that certain jurisdictions are still finalizing their arrangements, as some complaint channels remain pending publication. Firms preparing for or operating under MiCA should ensure their internal complaints-handling processes are aligned with the Regulation and anticipate increased supervisory scrutiny of client complaints.

ESMA Updates its Q&As Markets in Crypto-Assets Regulation (MiCA)

On 27 February 2026, ESMA has published or updated the following Questions and Answers:

• Clarification on Withdrawal Requirements under Article 75 of MiCA for CASPs (2320)
• Calculation of fixed overheads (2349)
• Interests earned from client funds deposited at credit institutions (2486)
• Payouts in fiat currency by CASPs in the context of exchange services (2550)
• Overlap between offers of crypto-assets and placing (2551)
• Application of Title II requirements to CASPs operating a trading platform for crypto-assets (2552)

Anti-money Laundering 

EU AMLA launches suite of consultation papers on draft RTS under EU AML package

On 9 February 2026, the EU Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) published three consultation papers on the following draft regulatory technical standards (RTS) under the EU AML package:

• Draft RTS on pecuniary sanctions, administrative measures and periodic penalty payments under Article 53(10) of Directive (EU) 2024/1640 (AMLD 6). The RTS specify the indicators to assess the gravity of breaches, criteria for determining the level of pecuniary sanctions or applying administrative measures, and a methodology for the imposition of periodic penalty payments, including their frequency. They aim to ensure that the same breach is assessed in the same way by all supervisors in all Member States, and that the resulting enforcement measures are proportionate, effective and dissuasive. The deadline for comments is 9 March 2026.
• Draft RTS on customer due diligence (CDD) under Article 28(1) of Regulation (EU) 2024/1624 (AMLR) specifying in detail how CDD requirements should be applied, including the information and documents to be collected. The deadline for comments is 8 May 2026.
• Draft RTS on criteria for identifying business relationships, occasional transactions and linked transactions as well as lower thresholds under Article 19(9) of the AMLR, which form the structural basis upon which CDD obligations apply. The criteria in the draft RTS apply to all financial and non-financial obliged entities with some parts which apply universally, while other parts are tailored to specific categories of obliged entities. The AMLA states that public input on these RTS is particularly important to ensure the criteria are effective. It also had the option under the AMLR to set additional, lower CDD thresholds for occasional transactions, which it has chosen not to exercise. The deadline for comments is 8 May 2026.

An online public hearing on the draft RTS on business relationships and customer due diligence is scheduled for 24 March 2026.

European Commission publishes draft Delegated Regulations under AMLD6 and AMLR

On 13 February 2026, the European Commission published two new webpages announcing the forthcoming adoption of two draft Delegated Regulations.

The first, under Directive (EU) 2024/1640 (AMLD6), will set out the indicators for assessing the gravity of failures by member states to report adequate, accurate and up-to-date information to the central registers, including in cases of repeated failures. The second, under Regulation (EU) 2024/1624 (AMLR), will define the categories of breaches subject to penalties, liable persons, indicators of the gravity of breaches and criteria to consider when setting the level of penalties of beneficial ownership transparency requirements.

The texts of both Delegated Regulations have not yet been published, and no consultation details have yet been provided. The European Commission plans to adopt them in Q3.

 

Information and communication technology (ICT) risk assessment

EBA -up report on ICT risk assessment under SREP

On 23 February 2026, the European Banking Authority (EBA) published a follow up report to its 2022 peer review on information and communication technology (ICT) risk assessment under the Supervisory Review and Evaluation Process (SREP).

The report reviews the recommendations issued to competent authorities in 2022, considering progress made following the application of the Digital Operational Resilience Act (DORA) since January 2025, and the forthcoming integration of the ICT SREP Guidelines into the revised SREP guidelines under DORA.

The EBA notes substantial progress by competent authorities in strengthening ICT risk supervision, largely driven by DORA’s implementation. Improvements include enhanced supervisory capacity and expertise, greater use of horizontal analyses and more systematic application of supervisory tools. ICT risk sub-categories are now embedded across almost all authorities. However, the EBA emphasises that further work and investment are still required to ensure consistent and effective ICT risk supervision across the EU. It encourages authorities to fully integrate ICT risk methodologies and sub-categories into their supervisory processes and to continue efforts to promote supervisory convergence and operational resilience ahead of the forthcoming revised SREP guidelines.

UCITS and AIFMD

New investment funds drive reduction in costs to investors

On 3 March 2026, ESMA published its 2025 market report on the costs and performance of EU retail investment products.

This eighth Costs and Performance report shows that ongoing costs in the EU continued to decline in 2024. This is however mostly due to new investment funds entering the market, as they usually charge lower fees. Cost reductions for long-standing funds remained more limited.

The cost and performance of products are key determinants of the benefits retail investors in the EU can get from their investments. Clear and comprehensive information enables investors to assess costs and past performance and supports informed decision-making and retail participation in capital markets.

The findings also demonstrate the importance of cost transparency, as well as the obligation for asset managers and investment firms to act in the best interest of investors.

The key findings in the report are:

• UCITS costs declined gradually, driven mainly by new funds,with ongoing costs falling by 8% for retail equity funds, and by almost 15% for retail bond funds. Cost reductions were more limited for existing funds, at 3% for equity funds and 9% for bond funds.
• UCITS performance improved significantlyin 2024. Equity and mixed funds achieved their second-best results since 2020, while bond funds reached their highest level of returns. Real net returns were positive across all fund categories, marking a clear turnaround from 2023.
• ESG UCITS continued to have lower costs than non-ESG. However, in 2024, ESG funds underperformed their non-ESG equivalents. Similarly, funds classified under SFDR Article 9 recorded lower returns than Article 6 funds.
• Alternative Investment Funds (AIFs) remained dominated by professional investors, and between 2022 and 2024 the share of retail investors investing in these products decreased from 14% to 9%. Annual net returns were positive across all categories of AIFs in 2024.
• Structured Retail Product costs remained broadly stable in 2024, while interest-rate linked products continued to gain market share, reaching 27% – up from just 1% in 2021. Structured products that matured in 2024 delivered positive gross returns, although these figures do not reflect the costs paid by investors.

Corporate Sustainability Reporting Directive (CSRD) and the EU Corporate Sustainability Due Diligence Directive

Omnibus I Directive published in Official Journal

On 26 February 2026, Directive (EU) 2026/470 amending the EU Corporate Sustainability Reporting Directive (CSRD) and the EU Corporate Sustainability Due Diligence Directive (CSDDD), amongst others, was published in the Official Journal of the European Union.

The Directive implements the proposals under the Omnibus I simplification package, which aims to streamline sustainability reporting and due diligence obligations for businesses. It follows Directive (EU) 2025/794 which implemented the “stop-the-clock” proposal, postponing the application date of certain requirements of the CSRD and CSDDD.

The Council of the EU adopted the final text on 24 February 2026. The directive enters into force on 18 March 2026 and member states will have until 19 March 2027 to transpose its provisions into national legislation, except for Article 4 on the level of harmonisation, with which they must comply by 26 July 2028 at the latest.

Announcement: Notification of the Minister of Finance for the designation of CySEC as competent authority for the application of the Regulation (EU) 2023/2631

On 30 January 2026, the Minister of Finance made an announcement through the official gazette of the Republic of Cyprus, exercising the powers granted to him by Article 56A of the Cyprus Securities and Exchange Commission Law (No. 73(I)/2009), appoints the Cyprus Securities and Exchange Commission (CySEC) as the competent authority for the purposes of implementing Regulation (EU) 2023/2631 under Article 44, with regard to:

• Issuers of European Green Bonds whose home Member State is the Republic of Cyprus, in accordance with Article 2 (13) of Regulation (EU) 2017/1129, regarding compliance with the obligations under Title II, Chapter 2, and Articles 18 and 19 of Regulation (EU) 2023/2631.
• Issuers whose home Member State is the Republic, in accordance with Article 2 (13) of Regulation (EU) 2017/1129, who use the common templates provided for in Article 21 of Regulation (EU) 2023/2631, with regard to compliance with those templates and the compliance of transition entities whose home Member State is the Republic with the obligations incumbent upon them under Title II, Chapter 2 and Articles 18 and 19 of Regulation (EU) 2023/2631.
• By way of derogation from the above provisions, the Commission does not supervise issuers of European Green Bonds that fall under Article 1(2)(b) and (d) of Regulation (EU) 2017/1129.

The Cyprus Securities and Exchange Commission, acting as the competent authority under Article 45 of Regulation (EU) 2023/2631, shall exercise the duties provided for in that Regulation, as well as the supervisory and investigative powers necessary to enforce its provisions.

Under Article 37 of Law 73(I)/2009, the Cyprus Securities and Exchange Commission, as the competent authority, may issue notifications, impose administrative sanctions, and take administrative measures as provided in Article 49 of Regulation (EU) 2023/2631.

The competent authority shall exercise all powers provided under Regulation (EU) 2023/2631.

Policy Statement on amendments to the Financial Conglomerates Directive

On 04 February 2026, CySEC published a policy statement amending the CySEC Financial Conglomerates Directive (DI87-12) to align national legislation with EU requirements on the European Single Access Point (ESAP).

The amendments transpose the relevant requirements of Directive (EU) 2023/2864 and aim to ensure that certain information disclosed by Investment Firms, Asset Management Companies and AIFMs of the Republic that are part of a financial conglomerate is made available on ESAP, the EU’s centralised digital access point for financial and sustainability information.

Interested parties may submit any enquiries to the Policy Department of CySEC at policy@cysec.gov.cy.

Circular C755: AMLA’s public consultations regarding draft RTS under Articles 19(9) and 28(1) Regulation (EU) 2024/1624 and Article 53(10) of Directive (EU) 2024/1640

On 16 February 2026 CySEC issued Circular C755 (the ‘Circular’), to inform the Regulated Entities that the Anti-Money Laundering Authority (the “AMLA”) has launched public consultations regarding the following Draft Regulatory Technical Standards (RTS):

• Article 19(9) of Regulation (EU) 2026/1624 (AMLR) – on criteria for business relationships, occasional transactions and linked transactions as well as lower thresholds, with comment submission deadline by 8 May 2026;
• Article 28(1) of Regulation (EU) 2024/1624 (AMLR) – on Customer Due Diligence, with comment submission deadline by 8 May 2026; and
• Article 53(10) of Directive (EU) 2024/1640 (AMLD 6) – on pecuniary sanctions, administrative measures and periodic penalty payments, with comment submission deadline by 9 March 2026.

Additionally, an online Public Hearing on the draft RTS on Business Relationships and Customer Due Diligence is scheduled for 24 March 2026, with additional information to be published by the AMLA at a later stage.

Through its Press Release , the AMLA welcomes responses from all stakeholders on the Business Relationships Consultations, and for the Customer Due Diligence and Enforcement consultations, the AMLA welcomes input from the non-financial sector. It is also noted that the role of the non-financial sector is further analysed on AMLA’s Explainer.

Through the Circular, CySEC urges all Regulated Entities to respond to the consultation papers.

Circular C756: Dual licensing of CASPs under PSD2 

Following the publication of CySEC Circular C722, on 16 February 2026 CySEC issued Circular C756 to inform crypto-asset service providers (‘CASPs’) and applicant CASPs that on 03 February 2026 the Central Bank of Cyprus (‘CBC’) published an announcement following the European Banking Authority’s (‘EBA’) opinion on the interplay between Directive (EU) 2015/2366 (‘PSD2’) and Regulation (EU) 2023/1114 (‘MiCA Regulation’) in relation to CASPs transacting electronic money tokens (“EMTs”).

According to the CBC’s announcement, CASPs are requested to conduct a self-assessment on whether the crypto asset services offered qualify as payment services, as per the provisions of the No Action letter, and are therefore subject to licensing from the CBC, unless other arrangements with an eligible PSP are made. In case a CASP needs authorisation as a payment institution to be able to provide the services defined above, the relevant application form needs to be completed and submitted to the CBC.

Furthermore, as per the CBC’s announcement, CASPs already offering the specific crypto-asset services related to EMTs which qualify as payment services must submit a relevant application for authorisation to the CBC by 20 February 2026. The EBA will issue in due time further guidance on the implications to the CASPs once the transitional period provided in the No Action Letter ends on 01 March 2026.

CySEC encourages interested parties to consult the full document of the CBC’s announcement and take the appropriate actions to comply with and inform CySEC accordingly.