1. Central Bank publishes revised CPC materials
On 24 March 2025, the Central Bank of Ireland (“Central Bank”) published the Feedback Statement to the March 2024 Consultation Paper on the Consumer Protection Code (“CPC 158”), together with the finalised regulations and guidance documents. The Central Bank has updated its dedicated Consumer Protection Code (“CPC”) webpage, which can be found here.
The Matheson Financial Institutions Group has published an insight on the changes and clarifications to the proposals in CP 158, which is available here.
However, for the purposes of this update, the materials published by the Central Bank are set out and described, below, as follows:
The updated CPC will be comprised of two regulations, as follows:
These regulations were signed into law on 24 March 2025 and will take effect on 24 March 2026, following a 12 month implementation period.
- Three guidance documents have also been published, as follows:
- General Code Guidance which sets out guidance for firms to support implementation of the broader requirements of the revised CPC. This guidance incorporates and updates the existing CPC guidance, and includes new guidance on the changes under the revised CPC, which was informed by feedback received during the consultation process. It should be noted that the General Code Guidance was not published last year with CP158.
- Guidance on Protecting Consumers in Vulnerable Circumstances; and
- Guidance on Securing Customers’ Interests
As promised, the Central Bank has provided a number of supplemental tools as follows:
- of note is the Mapping Tool – it shows where the existing CPC, the Code of Conduct on Mortgage Arrears, and the S.I. No. 196/2020 - Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Licensed Moneylenders) Regulations 2020 are reflected in the revised CPC; and
- the second tool is a redline of the changes to the regulations from the original version included in CP 158, as follows:
- Standards for Business Regulations; and
- Consumer Protection Regulations.
- Finally, the Central Bank has provided an excel document which details the changes to the regulations from the original version included in the CP 158
2. Commission publishes communication on Savings and Investments Union Strategy – a financial services perspective
On 19 March 2025, the European Commission (“Commission”) published its strategy (“Strategy”) regarding the Savings and Investment Union (“SIU”). The SIU aims to create better financial opportunities for EU citizens together with enhancing the ability of the financial system’s to channel savings to productive investments. The development of the SIU is one of the core objectives of the 2024 – 2029 Commission.
The Strategy states that the SIU should encompass all of the EU financial system and be developed at both national and EU levels, drawing on progress made under the two capital markets union actions plans and the work done to develop the banking union. The SIU will be developed using legislative and non-legislative measures, taking account of the importance of financial stability and sustainable competitiveness.
For the purposes of this update, the focus is on those aspects of the Strategy that relate to financial services.
The Strategy aims to provide a strategic framework to enable the effective alignment of all aspects of the EU financial system and sets out initiatives and policy actions centred around four work strands, as follows:
- Citizens and savings – the Strategy seeks to encourage investment in capital markets, noting benefits of higher returns from savings which boosts household wealth and retirement security.
Some of the proposed policy measure in the Strategy are:
- facilitation of agreement between the European Parliament (“Parliament”) and the European Council (“Council”) on the retail investment strategy (“RIS”);
- the adoption of a financial literacy strategy by Q3 2025;
- the adoption of measures, by the Commission, by Q3 2025 to create a European blueprint for savings and investments accounts or products based on existing best practice. These measures will be accompanied by a recommendation addressed to the Member States on the tax treatment of savings and investments accounts;
- by Q4 2025, issue recommendations on the use of and best practices for auto-enrolment, pensions tracking systems and pension dashboards; and
- the review, by Q4 2025, of the regulation on a pan-European pension product (“PEPP”) with a view to increasing participation in supplementary pensions.
Investments and financing – the Strategy notes that EU businesses and the economy need more capital and more financing options to grow, innovate and create jobs. Public funding alone is insufficient and capital markets have an important role to play.
Some of the proposed policy measure in the Strategy are as follows:
- by Q4 2025, the Commission will take measures to stimulate equity investments by institutional investors. To facilitate investment in equity by insurers, the Commission will specify, in the Solvency II delegated act, the eligibility criteria for the favourable prudential treatment of long-term investments in equity. As regards banks, the Commission will give guidance on the use of the favourable prudential treatment for investments under legislative programmes. The Strategy further states that the Commission will consider replicating such treatment also for insurers under the Solvency II delegated act;
- the Commission will act to remove differences in national taxation procedures creating administrative burden and barriers to cross-border investment and also support Member States’ actions for this purpose, for example, through enforcement of free movement of capital and other single market freedoms / issuing recommendations;
- by Q3 2026, the Commission will propose measures supporting exits by investors in private companies, possibly through multilateral intermittent trading of private company shares; and
- as regards securitisation, the Commission will propose measures in Q3 2025 with a view to simplifying due diligence and transparency together with adjusting prudential requirements for insurers and banks.
Integration and scale – the Strategy highlights that fragmentation in EU capital markets must be addressed as it holds back growth and prevents EU citizens and businesses from benefiting from the single market.
Some of the proposed policy measures set out in the Strategy are as follows:
- in Q2 2025, the Commission will set up a dedicated channel whereby market participants can report as to encountered barriers within the single market and, further, the Commission will step up enforcement action to accelerate their removal; and
- address barriers to more integrated trading and post-trading infrastructures. In particular, the Commission intends to make rules on central securities depositories (“CSDs”), financial collateral and settlement, and on the trading market structure, with the aim of further removing barriers to cross-border activity, modernising the legislative framework to recognise new technologies and financial developments, and ensuring better quality of execution and price formation on EU trading venues.
Efficient supervision in the single market – the Strategy emphasises that the EU must ensure all market actors receive the same supervisory treatment regardless of location in the EU. Creating a level playing field will support competition and investors’ confidence in EU markets.
Proposed policy measures include:
- in Q4 2025, the Commission will propose measures to strengthen supervisory convergence tools and make them more effective;
- in Q4 2025, the Commission will make proposals to achieve more unified supervision of capital markets as set out in the Competitiveness Compass, including by transferring certain tasks to the EU level; and
- the Commission will call on the European Supervisory Authorities (“ESAs”) and national competent authorities to fully utilise currently available tools and to implement the simplification agenda as outlined in the simplification communication.
Banking Sector
The SIU also addresses the enhancement of the integration and competitiveness of the EU banking sector, noting that an integrated EU banking sector, based on a single rulebook, and a banking union, is crucial for the success of the SIU. Some of the proposed policy measures are as follows:
- in 2026, the Commission will publish a report assessing the overall situation of the banking system in the single market, such assessment will include competitiveness as a metric;
- the Commission will continue to assess developments in banking markets so as to ensure a swift response in the event that financial stability / the internal market / international competitiveness of the EU banking sector, is threatened; and
- the Commission invites the co-legislators to address issues regarding the management of failure of mid-sized banks by way of agreement on the legislative proposals relating to the crisis management and deposit insurance (“CMDI”) reforms.
Next Steps
The Commission has stated that it will publish a mid-term review of the overall progress in achieving the SIU in Q2 2027. An appendix to the Strategy contains a table setting out all of the actions in the Strategy, including whether they will be achieved through legislation or not, together with a timeline.
3. European Updates: (1) DORA (2) MiCA
1. EBA publishes official translations of guidelines amending guidelines on ICT risk and security management
On 20 March 2025, the European Banking Authority (“EBA”) published, on its website, the official translations of its final report on the guidelines (“Guidelines”) amending guidelines on ICT and security risk management.
The amendments to the Guidelines were necessary to avoid duplication with the requirements on ICT risk management that were introduced by DORA. The amendments aim at simplifying the ICT risk management framework and providing legal clarity to the market. For more information, see FIG Top 5 at 5 dated 13 February 2025.
Next Steps
The Guidelines will apply from 20 May 2025. The deadline for competent authorities to report whether they comply with the guidelines is 20 May 2025.
2. ESAs updates FAQs on reporting of registers of information under DORA
On 19 March 2025, the joint committee of the European Supervisory Authorities (“ESAs”) updated its frequently asked questions on the reporting of registers of information under DORA.
Updated Questions
The following questions were updated:
- Question 16 as regards the use of languages other than English;
- Question 25 as regards the use of the codes when reporting drop down values;
- Question 27 regarding what validation checks and data quality checks will be applied by the ESAs when receiving registers of information; and
- Questions 64 and 107 regarding populating the register.
New Questions
The following questions are new questions:
- Questions 122, 123 and 124 as regards populating the register.
3. Commission adopts delegated regulation on RTS on subcontracting ICT services supporting critical or important functions under DORA
On 24 March 2025, the European Commission (“Commission”) adopted a delegated regulation (“Regulation”) with regard to regulatory technical standards (“RTS”) specifying the elements that a financial entity has to determine and assess when subcontracting ICT services supporting critical or important functions under DORA.
Background
The European Supervisory Authorities (“ESAs”) published the draft RTS on subcontracting on 8 December 2023 for a consultation period that ended on 4 March 2024. For more information, see FIG Top 5 at 5 dated 14 December 2023.
In January 2025, the Commission rejected the original draft RTS on subcontracting on the grounds that certain elements went beyond the powers conferred on the ESAs by DORA. The original draft RTS had specified further elements that financial entities were required to determine and assess when subcontracting ICT services that support critical functions under DORA. For more information, please see FIG Top 5 at 5 dated 6 February 2025.
On 7 March 2025, the ESAs published an opinion on the Commission’s rejection of the draft RTS on subcontracting under DORA. For more information, see FIG Top 5 at 5 dated 13 March 2025.
The Regulation
The RTS in the Regulation address the following areas:
- articles 1 and 2 of the RTS establish the rules on proportionality and group application;
- article 3 sets out rules on due diligence and risk assessment as regards the use of subcontractors supporting critical or important functions;
- article 4 establishes the description and the conditions under which ICT services supporting a critical or important function may be subcontracted; and
- articles 5-7 contain the rules on material changes to subcontracting arrangements of ICT services supporting critical or important functions and the provisions on the termination of the contractual arrangement.
Next Steps
The Regulation will enter into force 20 days after it is published in the Official Journal of the European Union.
4. Delegated regulation on composition of JETs under DORA published in OJEU
On 24 March 2025, Commission Delegated Regulation (EU) 2025/420 (“Regulation”) with regard to regulatory technical standards (“RTS”) to specify the criteria for determining the composition of the joint examination team (“JET”) under DORA, was published in the official journal of the European Union (“OJEU”).
The Regulation aims to ensure that the JET has a balanced participation of staff members from the European Supervisory Authorities (“ESAs”) and from the relevant competent authorities. The Regulation also addresses their designation, tasks and working arrangements. For more information, see FIG Top 5 at 5 dated 25 July 2024.
Next Steps
The Regulation will enter into force on 13 April 2025, being 20 days after its publication in the OJEU.
5. ESMA publishes official translations of guidelines on the conditions and criteria for qualification of crypto-assets as financial instruments
On 19 March 2025, the European Securities and Markets Authority (“ESMA”) published the official translations of its guidelines on the conditions and criteria for the qualification of crypto-assets as financial instruments (“Guidelines”) under the regulation on markets in crypto-assets (“MiCA”). The Guidelines apply in relation to article 2(5) of MiCA.
The Guidelines seek to provide greater clarity regarding the delineation between the scope of MiCA and other sectoral regulatory frameworks, particularly MiFID II. ESMA published its final report on the Guidelines on 17 December 2024, for more information, see FIG Top 5 at 5 dated 19 December 2024.
Next Steps
The Guidelines will apply from 18 May 2025, being 60 calendar days after the publication of the official translation on ESMA’s website. Further, by 18 May 2025, national competent authorities are required to notify ESMA whether they comply / do not comply but intend to do so / do not comply and do not intend to comply, with the Guidelines. Financial market participants are not required to report.
6. Four delegated regulations on RTS under MiCA published in OJEU
On 24 March 2025, four delegated regulations under the regulation on markets in crypto-assets (“MiCA”) were published in the official journal of the European Union (“OJEU”), as follows:
- Commission Delegated Regulation (EU) 2025/415 with regard to regulatory technical standards (“RTS”) specifying adjustment of own funds requirement and minimum features of stress testing programmes of issuers of asset-referenced tokens (“ARTs”) or of e-money tokens (“EMTs”).
- Commission Delegated Regulation (EU) 2025/418 with regard to RTS specifying the minimum content of the governance arrangements on the remuneration policy of issuers of significant ARTs or EMTs.
- Commission Delegated Regulation (EU) 2025/419 with regard to RTS specifying the procedure and timeframe for an issuer of ARTs or of EMTs to adjust the amount of its own funds.
- Commission Delegated Regulation (EU) 2025/421 with regard to RTS specifying the data necessary for the classification of crypto-asset white papers and the practical arrangements to ensure that such data is machine-readable.
The delegated regulations were adopted by the European Commission in December 2024, for more information, see FIG Top 5 at 5 dated 19 December 2024.
Next Steps
The delegated regulations will enter into force on 13 April 2025, being 20 days after their publication in the OJEU.
4. New Proposed European Legislation: (1) RIS (2) CMDI
1. Council publishes Trilogue negotiating positions on RIS
On 24 March 2025, the European Council (“Council”) published two notes, both dated 11 March 2025, which detail the respective negotiating positions of the Council, the European Commission and the European Parliament as regards the Commission’s Retail Investment Strategy (“RIS”).
The first note contains a three-column table setting out the respective negotiating positions as regards the Regulation amending Regulation (EU) No 1286/2014 (“PRIIPs Regulation”) dealing with the modernisation of the key information document.
Similarly, the second note contains a three-column table, setting out the respective negotiating positions, and addresses the proposal for a Directive as regards the Union retail investor protection rules.
Next Steps
Both notes, referred to above, will be used in the forthcoming trilogue negotiations between the three institutions.
2. Council publishes Trilogue negotiating positions on CMDI proposals
On 24 March 2025, the European Council (“Council”) published two working documents, both dated 17 February 2025, which detail the respective negotiating positions of the Council, the European Commission (“Commission”) and the European Parliament (“Parliament”) as regards the review of the EU bank crisis management and deposit insurance (“CMDI”) framework.
The working documents are as follows:
- working document comparing the negotiating positions of the Council, Commission and Parliament as regards the proposed directive on the scope of deposit protection, the use of deposit guarantee schemes funds, cross-border cooperation and transparency; and
- working document comparing the negotiating positions of the Council, Commission and Parliament as regards the proposed directive on early intervention measures, conditions for resolution and financing of resolution action.
5. Banking Updates: (1) Regulatory and supervisory equivalence of non-EU countries (2) Commission consultation on application of the market risk prudential framework
1. EBA updates methodology on regulatory and supervisory equivalence of non-EU countries
On 24 March 2025, the European Banking Authority (“EBA”) published its updated methodology (“Methodology”) for the assessment of regulatory and supervisory frameworks of non-EU countries.
The EBA has clarified that the changes stem from the amendments to the revised Capital Requirements Regulation (“CRR”) and the Capital Requirements Directive (“CRD”).
The Methodology is based on two questionnaires, that provide a thorough assessment of a particular jurisdiction’s regulatory and supervisory framework, as follows:
- the first questionnaire is a preliminary screening to see whether the main requirements and principles are in place; and
- the second step questionnaire consists of a more detailed examination which systematically maps the provisions of the EU framework with that of the non-EU country.
In addition to the changes due to amendments to the CRR and CRD, the EBA has stated that it has streamlined the second questionnaire in order to improve the user experience.
Online Platform
The EBA has moved the questionnaires to an online platform which allows countries to reply directly via a secured digital format.
2. Commission launches consultation on application of the market risk prudential framework
On 24 March 2025, the European Commission (“Commission”) launched a consultation (“Consultation”) on the application of the EU’s framework on market risk prudential requirements for banks (“Framework”).
In July 2024, the European Parliament and the European Council postponed the new market risk requirements as regards own funds for one year to align implementation with other major global jurisdictions, for more information, see FIG Top 5 at 5 dated 1 August 2024. This matter is the only one outstanding as regards implementation of the Basel III standards.
However, recent international developments have shown that there may be further delays regarding implementation in those other jurisdictions. This raises questions regarding the international level playing field and the impact on EU financial markets, and the possible EU response to address these concerns.
Accordingly, with this Consultation, the Commission aims to gather views from stakeholders on policy options as regards the application of the Framework and is considering acting under the empowerment in article 461a of the Capital Requirements Regulation (“CRR”) to adopt a delegated regulation by the end of June 2025.
The Consultation sets out three options as follows:
- implementing the fundamental review of the trading book as currently set out in the banking package from 1 January 2026;
- postponing the date of application by a further year, to 1 January 2027; or
- introducing temporary and targeted amendments to the Framework for up to three years.
The Commission has also stated that combinations of these options or other alternatives could also be envisaged provided they are within the Commission’s mandate
Next Steps
The Consultation is open for feedback until 22 April 2025.