Welcome to the FIG Top 5 at 5

On 22 July 2026, the Central Bank of Ireland (“Central Bank”) published the terms of reference (“ToR”) for a review (“Review”) of its enforcement activities. The Governor of the Central Bank, Gabriel Makhlouf, commissioned the Review in light of various factors, such as, the increase in size, complexity and interconnectedness of the financial system over the last ten years, alongside changes in the regulatory and legislative frameworks. Additionally, the ToR reference the need for the Review, considering the Central Bank’s own changes to its approach to regulation and supervision and to its enforcement framework and processes. 

The Review will be carried out by Josephine Feehily (“Reviewer”), former Chair of the Revenue Commissioners and first Chair of the Policing Authority.

The ToR highlight the key role played by enforcement and its function regarding credible deterrence, accountability and high conduct standards, ultimately underpinning trust and public confidence in the financial system.

The Review will assess the Central Bank’s enforcement activities, taking into account:

• their overall effectiveness and efficiency;
• domestic and international best practice with reference to regulators carrying out similar functions; and
• applicable international standards and principles.

Objectives

With those factors in mind, the ToR sets out the objectives of the Review, some of which are as follows:

• to evaluate the effectiveness of the performance of enforcement activities having regard to the outcomes the Central Bank aims to achieve and the role of enforcement in the supervisory framework. This will include, for example, a consideration of the Central Bank’s structures and processes as to how enforcement activities are carried out and decisions are made;
• an assessment of the processes and criteria that are used when it comes to deciding whether a case should be selected for enforcement action and the continuation of such action;
• an evaluation of timeliness and efficiency in terms of how enforcement activities are carried out, bearing in mind, legal processes, the organisational priorities of the Central Bank and the available resources; and
• a consideration of the transparency of enforcement activities, with reference to the firms involved, the public and also individuals who might be affected.

Method

Interviews and assessments will be carried out by the Reviewer with Central Bank senior management together with staff involved in enforcement processes and decisions. In addition, if considered necessary, the Reviewer will engage with external stakeholders.

Next steps

The ToR state that the Reviewer will provide a report, which will include recommendations, to the Governor of the Central Bank by 31 January 2027. This will be published in due course.

On 24 July 2026, the Central Bank Act 1942 (Section 32D) Regulations 2026 (“2026 Regulations”) were published in Iris Oifigiúil.

Section 32D of the Central Bank Act 1942 (“1942 Act”) provides that the Commission of the Central Bank, with the approval of the Minister for Finance, may make regulations prescribing levies to be paid to the Central Bank of Ireland (“Central Bank“) by regulated entities.

On an annual basis, the Central Bank Commission signs a statutory instrument into law which lays out the framework for that year’s levying process and the basis on which individual regulated entities’ levies will be calculated. From that date, all regulated entities are liable to pay an annual levy as determined in the regulations.

The 2026 Regulations set out those levies pursuant to section 32D of the 1942 Act.

Under section 3, all regulated entities are liable to pay the Central Bank a levy contribution in respect of each authorisation, and in accordance with the schedule to the 2026 Regulations, one or more supplementary level contributions for each authorisation held during a relevant levy period on or before the due date. For entities which were subject to regulation for only part of the levy period, the amounts will be calculated in accordance with how many days it was regulated for.

Under section 5, a regulated entity must pay a levy contribution regardless of whether a levy notice has been issued by the Central Bank. Under section 7, if no levy notice is received by a regulated entity for the levy period by 11 September 2026, then payment will be due on 9 October 2026.

Section 10 provides for an appeal by the regulated entity in respect of the levy or supplementary levy contribution. The grounds of the appeal must be set out in writing, and include supporting documentation, and levies due on the portion of time that is not in question must be paid. If the Central Bank believes that the payment of the levy may make that entity insolvent, or where the entity is a bankrupt sole trader, the Central Bank may waive the obligation to pay the levy.

Schedule

The schedule to the 2026 Regulations (“Schedule”)  sets out the amounts payable as regards levies and supplementary levies, depending on the type of regulated entity and its impact category under the Central Bank’s probability risk and impact system (“PRISM”) framework. Additionally, the Schedule sets out the basis of calculation for levies including a minimum amount and a variable amount.

Category A of the Schedule sets out the basis of calculation for credit institutions – this includes:

• credit institutions authorised in another EEA state which have established a branch in Ireland; and
• credit institutions authorised in another EEA state operating in Ireland on a freedom of services basis.

Category B of the Schedule details the calculation basis for levies payable by insurance undertakings, including:

• insurance / reinsurance undertakings authorised in Ireland, with reference to the PRISM impact category;
• insurance undertakings authorised in another EEA state; and
• special purpose reinsurance vehicles.

Category C sets out the basis of calculation for levy contributions for intermediaries and debt management firms, while category D details the calculation of the levies for investment firms (other than investment product intermediaries). Category D also uses PRISM impact ratings.

Categories F and G deal with credit unions and high cost credit providers respectively.

Category M specifies the basis of calculation of the levy for retail credit firms and credit servicing firms, also making reference to PRISM impact rating.

Category N sets out the applicable details as regards payment institutions and e-money institutions, providing that all entities in this category will pay a levy combining a minimum levy of €6,625 and a variable element based on 100% of the total value of annual transactions processed.

Category Q deals with crypto-asset service providers, specifying a flat rate levy of €30,000, highlighting that this amount reflects a full year of authorisation. For firms that were authorised during the year, the levy will be applied on a pro-rata basis, in accordance with the period of time authorised.

On 27 July 2026, the Department of Finance (“Department”) launched a public consultation (“Consultation”) on the Irish transposition  of the legislative package regarding the crisis management and deposit insurance (“CMDI”) framework, which amends the Bank Recovery and Resolution Directive (“BRRD”), the Single Resolution Mechanism (“SRM”) and the Deposit Guarantee Schemes Directive (“DGSD”).

The legislative package was published in the official journal of the European Union in April 2026 – for more information, see FIG Top 5 at 5 dated 23 April 2026.

The relevant directives are as follows:

• Directive (EU) 2026/804 amending the DGSD as regards the scope of deposit protection, the use of deposit guarantee schemes funds, cross-border cooperation, and transparency;
• Directive (EU) 2026/806 amending the BRRD as regards early intervention measures, conditions for resolution and funding of resolution action and Directive 2014/24/EU as regards valuation services in resolution; and
• Regulation (EU) 2026/808 amending the SRM as regards early intervention measures, conditions for resolution and funding of resolution action.

Member states are required to transpose the directives by 11 May 2028.

Most of the amendments to BRRD and DGSD are to be transposed on a fully harmonised basis, however there are a number of provisions in the directives where member states are given discretion as to whether to apply those provisions.

The amendments to SRM will take direct effect but the regulation allows for some member state discretions.

Sections 4, 5 and 6 of the Consultation set out the discretions contained in the CMDI  package and they relate to the following:

• articles 32(2) and 109(4) BRRD – article 32(2) relates to a competent authority being required to take a resolution action only if it considers that certain conditions are met in article 32(1), while article 109(4) provides for the potential use of the DGS to contribute to a resolution action, providing that such action ensures that depositors continue to have access to their deposits, where a resolution tool is applied;
• articles 5(2), 7(5),10(2), 10(11), 11(3), 11(5), and 15a DGSD – these relate to various matters, for example:

• • whether Ireland should allow the DGS to cover depositors at branches that have been set up in third countries (article 15a);
  • whether Ireland should allow the DGS to use the available financial means for alternative measures to preserve the access of depositors to their deposits (article 11(5)); and
  • whether Ireland should allow the DGS to use alternative funding sources first before using the main available funds and before collecting extra contributions for credit institutions (article 10(11)).

• article 7(5) SRM – this article sets out the various tasks that the Single Resolution Board are responsible for to ensure the effective and consistent functioning of the SRM.

Next steps

The Consultation is open for feedback until 24 August 2026. The Department is seeking feedback on whether, and indeed how, the discretions should be availed of. Feedback received will be taken into consideration when deciding on the national discretions contained within the texts and when transposing the CMDI package as a whole into Irish law. The outcome will be published in due course.

1. EBA launches four consultations under revised deposit guarantee schemes directive

On 23 July 2026, the European Banking Authority (“EBA”) published four consultations on draft regulatory technical standards (“RTS”), implementing technical standards (“ITS”) and guidelines under the Deposit Guarantee Schemes Directive (“DGSD”), as amended by the DGSD III.

DGSD III was published in the official journal of the European Union in April 2026 – for more information, see FIG Top 5 at 5 dated 23 April 2026 and the update, above, on the consultation on the Irish transposition of the legislative package regarding the crisis management and deposit insurance (“CMDI”) framework.

The EBA, in a related press release, explains that the proposed rules are aimed at further strengthening depositor protection, preserving financial stability and further harmonising depositor protection standards in the EU.

The consultations are as follows:

Consultation on draft RTS on DGS payouts of client fund deposits

This consultation, reflecting a mandate under article 8b of the DGSD, sets out draft RTS specifying:

• the technical details related to the identification of clients for the purpose of repayment;
• the criteria and circumstances under which repayment is to be made to the account holder or directly to the client; and
• the rules to avoid multiple claims for payouts to the same beneficiary.

Consultation on draft ITS on information exchange

This consultation, reflects a mandate under article 16 of the DGSD, and sets out draft ITS proposing minimum requirements for information exchange between credit institutions, deposit guarantee schemes (“DGSs”), designated authorities and the EBA, to ensure that:

• relevant information is available and accurate;
• procedures are efficient and timely without creating unnecessary burden; and
• data on the use of DGS funds is collected and published in a transparent, user-friendly manner.

Consultation on draft ITS on depositor information

Article 16 of the DGSD III mandates the EBA to develop ITS on depositor information. Accordingly, the ITS proposed in this consultation:

• amend the currently used information sheet that credit institutions provide to prospective and current depositors;
• outline what formats and channels should be used by credit institutions to communicate with depositors to ensure that information is easily accessible, such that, depositors are aware of deposit protection; and
• specify the content and procedures for communicating with depositors and in specific situations where depositors require timely, accurate and consistent information and clear communication on the consequences and next steps.

Consultation on draft guidelines on investment of available financial means

Under article 10 of the DGSD III, the EBA is mandated to develop guidelines that assist DGSs with the diversification of their available financial means and on how DGSs can invest in low-risk assets applicable to the available financial means of the DSG. Accordingly, these guidelines specify how DGSs should set and implement investment strategies that support the timely availability of funds for payouts or other DGS interventions, while preserving sufficient flexibility to accommodate different existing practices and market conditions.

Next steps

All four consultations are open for feedback until 23 October 2026. The EBA will hold a public hearing on all four proposed RTS, ITS and guidelines on 24 September 2026 – interested parties can register here.

 2. AMLA publishes final report on ITS on supervisory cooperation in direct supervision under AMLAR

On 21 July 2026, the Anti-Money Laundering Authority (“AMLA”) published its final report (“Report”) on draft implementing technical standards (“ITS”) on cooperation within the AML / CFT supervisory system for the purposes of direct supervision under article 15(3) of regulation (EU) 2024/1620 (“AMLAR”).

The Report highlights that, from 2028, the AMLA will be responsible for the direct supervision of obliged entities in the financial sector that operate in at least six member states and that have a high money laundering and terrorist financing risk profile.

Consultation

The AMLA consulted on the draft ITS in December 2025 – for more information, see FIG Top 5 at 5 dated 15 January 2026.

The Report highlights that feedback was mainly related to requests for clarification rather than changes to the overall structure of the ITS or policy choices. Section 4 of the Report sets out how the ITS were amended to take account of comments received during the consultation, with some of the areas covered being as follows:

• the process of periodic assessment for the purpose of selection for direct supervision under section 2 of the draft ITS;
• decision on the selection of obliged entities under section 3 of the draft ITS; and
• the composition and functioning of the joint supervisory teams under section 5 of the draft ITS.

Content

The draft ITS consider how the AMLA and national financial supervisors will cooperate during the selection process and when transferring supervisory powers for institutions or groups that will be directly supervised by the AMLA.

In that regard, the ITS provide clear rules for the identification of firms that the AMLA will supervise:

• national supervisors will gather and quality-check the data;
• the AMLA will carry out the risk assessment and make the selection, with the results published on its website; and
• when an entity moves from or to the AMLA’s supervision, the transferring authority will provide the firm’s full supervisory history to the receiving authority.

Proportionality

The AMLA highlights that the draft ITS have been drafted with proportionality in mind, in that entities are asked for detailed data only when they have been identified as being eligible for direct supervision. 

Next steps

The draft ITS will now be submitted to the European Commission for adoption before being published in the official journal of the EU.

1. Commission delegated regulation on third country branch reporting under CRD IV published in OJEU

On 27 July 2026, Commission delegated regulation (EU) 2026/1751 (“Delegated Regulation”) was published in the official journal of the European Union (“OJEU”).

The Delegated Regulation lays down implementing technical standards (“ITS”) for the application of directive 2013/36/EU (“CRD IV”), as amended by directive (EU) 2024/1619 (“CRD VI”) as regards third country branches (“TCBs”) reporting.

CRD VI introduced a new framework requiring non-EU banks to establish a TCB in the EU if they intend to provide core banking services into EU member states. Further, TCBs are required to periodically report certain regulatory and financial information to their competent authorities.  Article 48l(1) of  CRD IV, which was introduced by CRD VI, requires the EBA to develop draft ITS to define uniform formats, definitions, and reporting frequencies for these requirements.

The European Banking Authority (“EBA”) published its final report on the ITS in March 2026 – for more information, see FIG Top 5 at 5 dated 12 March 2026. 

Next steps

The Delegated Regulation will enter into force on 16 August 2026, being 20 days after its publication in the OJEU.

2. Commission delegated regulation on establishment and assessment of order execution policies under MiFID II published in OJEU

On 23 July 2026, Commission delegated regulation (EU) 2026/825 (“Delegated Regulation”) was published in the official journal of the European Union (“OJEU”). The Delegated Regulation supplements directive 2014/65/EU (“MiFID II”) and sets out regulatory technical standards (“RTS”) with regard to the criteria to be taken into account in establishing and assessing the effectiveness of order execution policies of investment firms.

Delegated Regulations (EU) 2017/575 and (EU) 2017/576 are repealed

The MiFID II Directive set outs a “best execution” obligation for investment firms to ensure that those firms execute client orders on terms that are the most favourable to their clients.

The European Commission adopted the Delegated Regulation in April 2026 – for more information, see FIG Top 5 at 5 dated 16 April 2026.

Next steps

The Delegated Regulation will enter into force on 12 August 2026, being 20 days after its publication in the OJEU and it will apply from 12 February 2028.