Welcome to the FIG Top 5 at 5

On 5 June 2026,  the Central Bank of Ireland, (“Central Bank”) published its Annual Report 2025 and Annual Performance Statement 2025-2026 (“Report”).

The Report is divided into two parts, with part 1 dealing with the Report itself, while part 2 addresses the Central Bank’s financial operations. The Report is a detailed and comprehensive document and for the purposes of this update, the focus is on the following:

Chapter 1: Implementing Our Strategy 2022-2027

 

Some of the matters highlighted in this chapter include:

• an overall summary of the achievement of objectives, over 2025, across the Central Bank’s four interconnected themes of future-focused, open and engaged, transforming and safeguarding; and
• an acknowledgment that the Central Bank is approaching the final stages of its current strategic cycle, flagging that it will be formulating its new strategy during 2026, cognisant of the accelerated global macro-economic, geopolitical, climate and technological changes that are currently in train.

 

Chapter 2: Delivering our Responsibilities

 

Matters addressed in this chapter include:

• price stability – addressing matters such as inflation / GDP growth / Eurosystem monetary policy decisions and operations / Irish monetary policy operations;
• financial stability – highlighting the publication of two financial stability reviews in 2025, for more information, see FIG Top 5 at 5 dated 20 November 2025 / Central Bank research and analysis / macroprudential policy;
• climate change – highlighting publications dealing with the management of climate related financial risks and opportunities / funding climate adaptation. The preparation of the Central Bank’s climate observatory for 2025 was also referred to – for more information, see FIG Top 5 at 5 dated 29 January 2026;
• resolution – dealing with resolution planning and enhanced resolvability / resolution funds / the deposit guarantee scheme and insurance compensation fund;
• financial crisis preparedness and management – highlighting that work was focused on looking at system wide response structures and contingency arrangements for operational disruptions to payment services, including cash;
• payment systems and currency – covering matters such as TARGET Services / digital euro / regulatory changes in the payment ecosystem;
• financial regulation and supervision – considering areas such as:
  • the risk landscape, noting the uncertain global environment and heightened geopolitical and macro-financial risks across 2025 / elevated levels of operational risks / risks associated with climate and environmental crises / the strong financial and operational resilience shown by Ireland’s financial sector through an extraordinary period of turbulence;
  • the supervisory framework, highlighting the new supervisory framework that was implemented in January 2025 and confirming that the Central Bank will continue to communicate more specifically, and earlier, regarding its regulatory and supervisory priorities in each sector, together with an overview of its planned activities to achieve those priorities;
  • a consideration of the main developments and key financial regulation and supervision activities in 2025 across all of the sectors regulated by the Central Bank together with a piece on key activities regarding consumer and investor protection, particularly in the context of the coming into effect of the Consumer Protection Code 2025 (“CPC 2025”) in March 2026;
  • authorisations and gatekeeping – highlighting that authorisation activity in 2025 increased, alongside growing complexity with the Report noting that this reflects technological advances in applicant firms’ business models as well as legislative changes in the regulatory environment. The Report contains a breakdown of the number of authorisations progressed in 2025, along with processing times;
  • enforcement – a summary of Central Bank enforcement actions in set out in the Report. The Report also addresses inquiries, highlighting the conclusion of three in 2025.
  • the Report also considers fitness and probity investigations / financial crime / unauthorised providers / protected disclosures / financial sanctions / AML and CFT; and
  • policy and legislative pipeline – the Report provides a summary of its actions as regards the following:
    • the EU Artificial Intelligence Act;
    • European Union and international engagement; and
    • the CPC 2025.

• the orderly and proper functioning of financial markets – addressing matters such as developing a deeper understanding of market structures and participation / regulatory frameworks and policy outcomes / exit of firms.

 

Chapter 3: Enabling Our Organisation

 

Amongst other matters, the following areas are considered in the chapter:

• the Central Bank’s use of data, analytics and AI, noting that the Central Bank has progressed from piloting AI capabilities to operational production use;
• engagement with stakeholders, highlighting events such as the Financial Industry Forum and the Financial System Conference / work related to raising consumer awareness; and
• complaints handling.

 

Chapter 4: Our Priorities for 2026

 

Some of the priorities set out in the Report are as follows:

• work regarding monetary and financial stability, economic research and advice;
• continuing to strengthen the financial sector’s operational resilience, including the ability to manage and respond to severe operational disruptions and provide continuity of services for customers;
• ensuring firms have implemented the CPC 2025, while also looking to apply it to all credit union regulated activities from 2027;
• delivering responsibilities under the access to cash legislation;
• enhancing the financial sector’s safeguards against financial crime;
• continuing supervisory work related to how the financial sector is embedding climate and other environmental factors into risk management, business models and governance. This includes assessing firms’ responses to the increasing frequency and severity of climate-related weather events;
• a continued focus on the use of AI in the financial sector, including further developing the Central Bank’s understanding and expectations for firms, supporting the Government’s national transposition and implementation of those aspects of the EU AI Act that fall within its remit; and
• progressing work as regards innovation in the financial sector.

The Report restates the Central Bank’s ongoing commitment to regulating and supervising well, highlighting that it will continue to work to embed improvements in its supervisory framework, ensuring that its approach remains risk‑focused, proportionate and responsive to developments in the financial system.

Remainder of Report

Chapter 5 of Part 1 deals with the Central Bank’s internal audit statement.

As mentioned above, Part 2 of the Report addresses the Central Bank’s financial operations.

Blog Post

Coinciding with the publication of the Report, Governor of the Central Bank, Gabriel Makhlouf, published a blog post where he provides an overview of the economic outlook, summarises the Central Bank’s achievements in 2025 and also gives an update on the Central Bank’s financial position at the end of 2025.

On 10 June 2026, Deputy Governor of Consumer and Investor Protection at the Central Bank of Ireland (“Central Bank”), Colm Kincaid, delivered a speech (“Speech”) at the National Financial Literacy Strategy Stakeholder Forum. The Speech centred around the work that the Central Bank engages in to advance the objectives of the Financial Literacy Strategy (“Strategy”) via its consumer protection mandate – for more information on the Strategy, see FIG Top 5 at 5 dated 27 February 2025.

The Deputy Governor emphasised the point that the more financially literate an individual is, then the more likely they are to be able to withstand economic shocks and, ultimately, to be in a better position to secure their financial future.

Having made this point, Mr Kincaid addressed the global standard when it comes to financial literacy and awareness as a principle in financial consumer protection – being principle 4 of the G20 / OECD High Level Principles on Financial Consumer Protection. In that regard, the Deputy Director described how the Central Bank supports Ireland’s implementation of this principle by making sure that regulated firms behave in such a way that:

• financial literacy is promoted;
• consumers can understand risks and make informed choices; and
• consumers’ financial wellbeing is supported.

CPC 2025

Central to those efforts, the Deputy Governor highlighted, is the recently revised Consumer Protection Code (“CPC 2025”), describing it as creating an environment that supports financial literacy. In that regard, he gave some examples as to how the CPC 2025 is achieving this, including:

• under the CPC 2025, information must be provided in a way that ensures that the main features of the product / service can reasonably be understood. All customer information must be clear, accurate and up to date, avoiding unnecessary technical terms;
• digital services must be designed to be easy to use with relevant technology tested and producing consistent and objective outcomes; and
• there are new requirements for firms when it comes to countering the risk of frauds and scams.

The Deputy Director took the opportunity to restate a previously made point of his, in that, industry could play its part in the simplification agenda by making product offerings and processes simpler for the end user.

Awareness

The Deputy Director highlighted the role of the Central Bank regarding consumer awareness when it comes to the risks and their rights, citing the example of the Central Bank’s consumer hub where plain language explainers and videos are published to support consumers in this regard.

A strong and effectively supervised consumer protection framework

Ensuring that the consumer protection framework is robust and effectively supervised supports financial wellbeing, the Deputy Governor noted, as it ensures that:

• consumers are informed effectively; and
• consumers have access to quality financial products and services that support them in managing their finances.

Next Steps

Referencing a “comprehensive programme of work in 2026 and beyond”, Mr Kincaid stated that the Central Bank will continue to make sure that regulated firms are “placing consumers at the centre of their decision-making and operations.” Firms will be held to account as to how they treat consumers and compliance with the CPC 2025 will be monitored with the goal of ensuring that consumers are better protected and informed, and in a better position when it comes to making sound financial decisions.

On 4 June 2026, the Central Bank of Ireland (“Central Bank”) published its June 2026 Investment Firms and Intermediary Newsletter (“Newsletter”). The Newsletter covers topics of interest, significant work and regulatory issues that retail intermediary firms, MiFID firms and crowdfunding service providers need to be aware of.

Some key highlights from this edition include:

Intermediary Insights

• Streamlined authorisation process for sole traders transitioning to single director companies

The Newsletter reminds readers of the new authorisation process for sole traders changing to a single director company – for more information, see FIG Top 5 at 5 dated 19 February 2026;

• Updated retail intermediaries authorisation documentation

The Newsletter also takes the opportunity to remind readers of recent changes to retail intermediaries authorisation documentation on foot of the commencement of the Consumer Protection Code 2025 (“CPC 2025”) – for more information, see FIG Top 5 at 5 dated 9 April 2026;

• Mapping and profile review of the retail intermediaries sector

The Newsletter highlights the evolving nature of the retail intermediaries sector, pointing to merger and acquisition activity and increasingly complex business models. Accordingly, the Central Bank will carry out a mapping and profile review of the sector, aimed at identifying emerging trends that may have an impact on supervision and consumer protection. The review will take the form of a sector-wide survey that will be issued to all retail intermediaries. Some of the areas covered by the survey will include ownership and structure / business model type and product lines / governance arrangements / operational and outsourcing activities.

• Retail intermediaries’ treatment and protection of client funds

The retail intermediary’s position of trust is highlighted, particularly when it comes to dealing with client funds, with the Newsletter emphasising the importance of compliance with all relevant legislative and regulatory requirements. The Newsletter highlights that client monies relating to insurance products must be lodged to a designated client premium account. The Newsletter highlights that it is usual for clients to make direct payments to the relevant product provider in respect of investment and financial products. The importance of issuing a receipt is underscored.

• Review of commission disclosures

The Newsletter sets out results of a recently completed review of the disclosure of commission arrangements to retail customers. This review included a sample of firms from the retail intermediary sector and was carried out in the context of the Central Bank’s identification, in its 2026 Regulatory and Supervisory Outlook Report (“RSO”), that one of the main drivers of consumer risk stems from ineffective disclosure.

The review found that firms were broadly complying with the regulatory requirements regarding commission disclosure, but it was noted that the approach of some firms was more consumer-centric, with the provision of clearer and more user-friendly information.

The CPC 2025 is referenced as regards effectively informing customers and the Newsletter sets out the Central Bank’s expectation that customers are being informed effectively when it comes to commission arrangements. Additionally, the Newsletter sets out some further expectations that were identified on foot of the review, for example:

• • commission arrangements are tailored to the customer and are set out prominently in customer documentation;
  • customers are made aware of both the percentage and monetary amount of commission, as appropriate; and
  • websites are easy to navigate and contain clear and accurate information on commission arrangements that are currently in operation only.

Crowdfunding Insights

The Newsletter provides a summary of the European Securities and Markets Authority’s (“ESMA”) December 2025 report on crowdfunding in the EU, noting some statistics as to total money raised, whether projects were debt, loan or equity based, distribution of funding by instrument type / investor type.

The Newsletter notes that ESMA’s report also contained results regarding a sample of crowdfunding service providers, which were included in recent survey-based analysis of the impact of AI on financial sector entities – providing insight into current and planned adoption of AI tools in the sector.

The Newsletter highlights the important source of alternative finance that is provided by crowdfunding, going on to add that it has the potential to support the development of the savings and investment union, a factor also pointed out in the ESMA report.

MiFID Insights

• IMIA MiFID industry event

The Newsletter highlights that the Central Bank held an event for the MiFID sector on 26 May 2026 focused on:

• • the RSO and the priority risk theme of resilience; and
  • the CPC 2025 and its application to the MiFID sector, particularly highlighting the Central Bank’s expectations of the sector as regards applying the Guidance on Securing Customers’ Interests and the Guidance on Protecting Customers in Vulnerable Circumstances when providing MiFID services; and
  • a Q&A session, which addressed matters such as, the Central Bank’s approach to identifying priority risks, market abuse and the submission of suspicious transaction and order reports, AI and expectations of firms in the context of geopolitical risk.

• Common supervisory action on the MiFID II sustainability requirements

The publication, by ESMA in May 2026, of a statement on the findings of the 2024/2025 common supervisory action (“CSA”) on the integration of the MiFID II sustainability requirements in firms’ suitability assessment and product governance processes was addressed in the Newsletter. For more information on the CSA, see FIG Top 5 at 5 dated 14 May 2026.

The Newsletter also sets out the Central Bank’s key findings on foot of the CSA, some of which are as follows:

• • firms were unable to fully demonstrate compliance with ESMA guidelines, on collecting and informing clients on “sustainability preferences” and the “choices” to be made in this context, highlighting that improvements are needed to support clients in understanding technical language and concepts; and
  • investment advisor training varied significantly across firms, emphasising the importance of adequate training in supporting clients to make informed decisions.

Finally, the Newsletter sets out the expectations of the Central Bank and required action including that firms should continue to review and improve how sustainability considerations are integrated into their suitability and product governance processes and training practices during the time when the wider sustainable finance framework is undergoing significant revision.

• Compliance function thematic assessment

The Newsletter considers the recent publication of the results of a thematic assessment of the compliance function across a cohort of MiFID investment firms – for more information, see FIG Top 5 at 5 dated 21 May 2026.

• MiFID conduct of business annual return enhancements

The Newsletter outlines that the Central Bank is introducing an enhanced conduct of business return (“COBR”) for the MiFID investment firm sector, highlighting that there will be:

• • a unified COBR combining the existing COBR and the investments product template; and
  • an enhanced data set reflecting the application of the CPC 2025’s Guidance on Securing Customers’ Interests and Protecting Customers in Vulnerable Circumstances to MiFID regulated entities.

It is stated that the changes will take effect for the 2026 annual data collection exercise, with the updated COBR becoming available on the Central Bank’s portal in early 2027 in advance of submissions, which are due by 31 March 2027. Finally, an updated guidance note will be available on the MiFID investment firm section of the Central Bank website in early 2027.

Central Bank Insights

Some of the matters covered in this part of the Newsletter, many of which have been reported on in the FIG Top 5 at 5 over the last number of months, include:

• the 2026 RSO – for more information, see FIG Top 5 at 5 dated 5 March 2026;
• a piece on the retail investment strategy (“RIS”), considering its aims, the main changes under the RIS and next steps. It is highlighted that ESMA and the European Insurance and Occupational Pensions Authority will be launching consultations public hearings and consumer testing over the next 24 months, with the Newsletter encouraging MiFID firms and retail intermediaries to monitor these developments;
• a piece on the implementation of the requirement for consumers to provide consent to automatically renew annual policies for travel, pet, gadget and dental insurance as per Regulation 327, in the context of the CPC 2025 taking effect on 24 March 2026. Some examples as to what does, and what does not, meet the requirements of Regulation 327 are provided;
• an update on the EU’s AML / CFT single rulebook and the Anti-Money Laundering Authority (“AMLA”), looking at the AML package / the AMLA / the single rulebook. Obliged entities are reminded to continue to familiarise themselves with the AML Regulation;
• the roll out of new AML / CFT risk evaluation questionnaires (“REQ”), highlighting that the Central Bank has launched the enhanced MiFID investment firm REQ – which must be submitted by 30 June 2026 with 2025 data points. Further, it is highlighted that, in H2 2026, enhanced REQs for life and investment intermediaries will be launched, with the first submission due in March 2027; and
• a feature on complaints handling, including consideration of a 2025 examination, by the Central Bank, of the customer experience through the lens of customer complaints across a number of sectors. The Financial Services and Pensions Ombudsman’s (“FSPO”) recent publication of its overview of complaints for 2025 is also referenced – for more information, see FIG Top 5 at 5 dated 2 April 2026. The key obligations under the CPC 2025 are also restated. The Newsletter also highlights that the Central Bank is currently conducting a thematic review of complaints handling in the MiFID sector and expects to publish the findings later this year.

1. ESAs publish first report on major ICT-related incidents under DORA

 

On 3 June 2026, the European Supervisory Authorities (“ESAs”) published a joint report (“Report”) setting out details as to major ICT-related incidents that occurred in 2025 in the EU, that were reported to competent authorities (“CAs”), under the Digital Operational Resilience Act (“DORA”). The Report, which is mandated under article 22(2) of DORA, is the first such report to be published.

Article 3(10) of DORA states that major ICT related incidents are ICT incidents that have a high adverse impact on the network and information systems that support critical or important functions of financial entities.

The Report, containing information on an anonymised and aggregated basis, sets out details as to the number of major ICT-related incidents, their nature, their impact on the operations of financial entities or clients, remedial action taken and costs incurred.

Structure

Section 2 of the Report describes the methodology used in the production of the Report. Section 3 provides an aggregated overview of key metrics on a sectoral basis and also contains a “deep dive” on some major incidents that had a broad impact of the EU’s financial sector in terms of the number of affected entities / clients or due to widespread news coverage.

Overview of major incidents in the EU

Some of the matters highlighted in section 3 of the Report are as follows:

• 2025 saw a total of 3,383 major incidents reported, with the Report highlighting that this equates to 0.18 major incidents per financial entity;
• the majority of major incidents occurred in the credit and payments sectors, with the Report emphasising that this does not reflect a weakness in these sectors, but rather, relates to differences in market structure, the existence of similar reporting requirements prior to DORA, and the highly digital and customer facing nature of services provided in these sectors;
• a third of major incidents had a cross-border impact with around one third of these affecting one or two member states. In about 8% of all major incidents, more than ten countries were impacted, with the Report noting that this highlights the interconnectedness of the financial sector and the borderless nature of ICT risks;
• when it comes to the type of incidents, system failures accounted for 51% of all major incidents, followed by external events at 27% and payment related incidents at 18%. The Report points out that this illustrates the critical role of outsourced services, the interconnectedness of the financial system, and the importance of robust third-party risk management, oversight and coordination;
• in the vast majority of cases, the Report shows that the impact on clients was either absent or minor. Overall, the impact of major incidents on clients, transactions and financial counterparties was limited in most cases. In practical terms, the Report goes on to note, most incidents either did not affect clients, transactions or counterparties at all, or affected them only to a relatively small extent;
• there was a low occurrence of cybersecurity incidents, with the Report stating that this might suggest that existing security safeguards and detection mechanisms were effective in preventing cyber incidents from escalating into major events;
• the Report highlights that a harmonised framework for major incident reporting is a key component as regards ensuring timely supervisory awareness of ICT risks, supporting effective coordination among CAs, and strengthening the overall resilience and stability of the EU financial system; and
• divergent reporting practices across sectors and jurisdictions were observed, with the Report pointing to the early stage of implementation of the new major incident reporting framework introduced by DORA as a factor in this.

Resilience

The Report emphasises that, in general, the number of major incidents should not be seen as indicating structural weaknesses, noting that operational incidents are to some extent unavoidable, when factors such as increased digitalisation are taken into account. In fact, the Report emphasises that financial entities have demonstrated resilience in the way in which they quickly identified, responded to and contained major incidents.

Deep dive

The “deep dive” focuses on two major cross-border events that took place in 2025, creating “visible peaks” in the reported incidents, as follows:

• an incident in February 2025 where TARGET services experienced a major incident that made T2 and T2S unavailable for around ten and eight hours respectively, causing around one hour of partial disruption in TARGET instant payment settlement; and
• the electrical blackout in the Iberian Peninsula in April 2025, that lasted for about ten hours.

Looking ahead

The Report highlights that the introduction of a new IT tool in 2026 for reporting of major incidents by CAs to the ESAs, together with automated validation checks and feedback mechanisms, is expected to improve data quality, collection and processing. In addition, the ESAs expect that the DORA register of information will further support additional analysis, together with the reporting by CAs of major incidents.

Next Steps

The Report confirms that the ESAs will continue to monitor and analyse major incidents, offering additional guidance to CAs aimed at supporting super convergence when it comes to major incident reporting and ICT third party risk management.

 

2. AMLA consults on draft guidelines on ongoing monitoring of a business relationship

 

On 3 June 2026, the Anti-Money Laundering Authority (“AMLA”) published a consultation (“Consultation”) on draft guidelines (“Guidelines”) on the ongoing monitoring of a business relationship under article 26(5) of the Anti-Money Laundering Regulation (“AMLR”).

The Consultation explains the importance of ongoing monitoring in that it is an essential part of customer due diligence. Additionally, it serves to maintain an accurate understanding of a customer and also helps to identify changes that may indicate money laundering or terrorist financing (“ML / TF”) risks including, risks related to the non-implementation or evasion of targeted financial sanctions.

The Guidelines set out practices that apply to all obliged entities (“OEs”), in the financial and non-financial sector, clarifying how ongoing monitoring, including the monitoring of transactions and activities, should be designed and implemented in practice.

The Guidelines have been drafted to take account of varying business models and data availability while also bearing proportionality in mind together with a need to be technologically neutral.

Structure

The Guidelines are composed of a general guidelines section, Guideline 1 and Guideline 2. The general section deals with key principles regarding ongoing, risk-based monitoring, including periodic reviews, event triggers and transaction and activity monitoring. Additionally, they address the matter of proportionality.

Guideline 1

Guideline 1 deals with keeping customer documents, data and information up to date, explaining that updating customer information is an ongoing activity and includes, for example, periodic reviews, and updates triggered by specific events, such as, changes in a customer’s behaviour or circumstances.

Further, Guideline 1 also sets out details as to the sources that may be used to update customer information with the overall objective being to aid OEs when it comes to maintaining up to maintaining accurate customer information in a way that is proportionate, risk‑focused, and practical for day‑to‑day operations.

Guideline 2

This Guideline relates to the way in which OEs should design and operate an effective monitoring framework to detect unusual or suspicious transactions and activities, highlighting that monitoring should be based on the nature, risks and complexity of the business, and the size of the OE.

Next Steps

The Consultation is open for feedback until 3 September 2026, with the AMLA seeking input on all proposals, particularly on the questions summarised in section 5.2 of the Consultation.

The AMLA will hold a public hearing on the Consultation on 2 July 2026 – interested parties can register here.

1. Parliament updates procedure files indicating it will consider RIS proposals during 11-12 November 2026 plenary session

 

On 9 June 2026, the European Parliament (“Parliament”) updated two procedure files as follows:

• procedure file relating to the amendment of the regulation on key information documents for packaged retail and insurance-based investment products (“PRIIPs”); and
• procedure file relating to the proposed directive on retail investor protection, which amends, amongst others, MiFID II, the Insurance Distribution Directive and Solvency II.

Both procedure files, which from part of the retail investment strategy (“RIS”) legislative proposals, have been updated to show an indicative plenary sitting date, for first reading, of 11 November 2026.

The Parliament and the European Council reached political agreement on the RIS in December 2025 – for more information, see FIG Top 5 at 5 dated 15 January 2026.

 

2. Commission adopts delegated regulation on prudential framework for banks’ market risk under CRR

 

On 4 June 2026, the European Commission (“Commission”) adopted a delegated regulation (“Delegated Regulation”) amending the capital requirements regulation (“CRR”), as regards temporary targeted operational relief measures and targeted multipliers for the calculation of an institutions’ own funds requirements for market risk.

The Commission consulted on the Delegated Regulation in April 2026 – for more information on the Delegated Regulation, see FIG Top 5 at 5 dated 30 April 2026.

Press release and Q&As

The Commission has also published a press release, with Maria Luis Albuquerque, Commissioner for Financial Services and the Savings and Investments Union, stating that:

“Europe’s banks must be able to compete on equal terms with their international peers. These targeted and time-limited measures help preserve a level playing field in global financial markets while maintaining our commitment to the Basel standards. They provide certainty for EU banks, support the objectives of the Savings and Investments Union, and give us the necessary time to monitor developments in other major jurisdictions before determining the most appropriate long-term approach.”

A set of Q&As has also been published, addressing technical implications – available here.

Next Steps

The Delegated Regulation will now be scrutinised by the European Parliament and the European Council and, if neither institution objects, it will be published in the official journal of the EU and enter into force the day after such publication.

The amendments introduced by the Delegated Regulation will apply from 1 January 2027, while the temporary targeted measures will cease to apply after 31 December 2029.

 

3. Parliament and Council reach agreement on simplified rules amending MiFID for small mid-cap companies

 

On 9 June 2026, the European Parliament (“Parliament”) announced, by way of a press release (“Press Release”), that it, and the European Council (“Council”) have reached a  provisional agreement on proposals introducing the concept of small mid-cap enterprises (“SMCs”) and extending various exemptions to them that, until now, have been available to small and medium enterprises (“SMEs”).

The proposals, which will amend the MiFID II directive, are aimed at avoiding “situations where a company’s obligations drastically increase when they grow beyond the SME threshold, and to support companies in scaling up.”

The Press Release highlights that SMCs are defined in principle as companies with fewer than 1,000 employees and either up to €200 million in turnover or up to €172 million in total assets – the Commission has proposed lower thresholds.

Next Steps

The provisional agreement must be formally adopted by Parliament and Council before it enters into law