Welcome to the FIG Top 5 at 5

1. Central Bank publishes consultation on industry funding levy proposals

 

On 25 September 2026, the Central Bank of Ireland (“Central Bank”) published a consultation (“CP172”) on proposed changes to the methodologies used by the Central Bank for deciding on, and calculating, the industry funding levy (“Levy”) amount payable by firms in some industry categories.

The Central Bank is authorised to prescribe the annual Levy, to be paid by regulated entities to the Central Bank, by the Central Bank Act 1942 (as amended). The Levy funds the cost of the Central Bank’s financial regulation activities for the previous year, and in that regard, regulations are made on a yearly basis – for more information on the latest regulations, see FIG Top 5 at 5 dated 27 August 2026.

CP172 is concerned with how the Levy is distributed across firms within an industry category, not with the overall amount collected from that category.

2025 review

CP172 outlines that the Central Bank reviewed its Levy strategy over the course of 2025, engaging with a range of stakeholders, and looking at the approach taken by other countries.

Levy methodology changes formed a key proposal from that review and the Central Bank determined that changes to the methodologies that apply in some industry categories should be made.

Structure

CP172 contains six sections covering, an overview of the proposed Levy methodology changes (section 2) / the Levy methodology proposals (section 3) / implementation of the proposals (section 4) / other industry funding-related topics (section 5) / consultation questions and process (section 6). There are also three appendices – appendix 1 contains an overview of the Levy methodologies by industry category.

PRISM

CP172 acknowledges the changes implemented by the Central Bank when it comes to its approach to supervision, resulting in a move away from “the programmatic approach of the PRISM model”, highlighting that as PRISM impact is no longer the primary driver for the intensity of supervision, it is no longer appropriate to retain PRISM impact categorisation to decide on the Levy a firm pays. Instead, the Central Bank has taken the view that the Levy should be related to a firm’s scale in the context of its industry category.

Changes

CP172 proposes changes for those industry categories where the Levy is currently decided based on a firm’s PRISM impact categorisation and moving to an ad valorem approach – this covers insurance undertakings, investment firms and investment fund service providers. Changes are also put forward as regards retail credit firms and credit servicing firms, from the flat rate-based methodology currently used to an ad valorem approach. For the payment institutions and e-money institutions industry category, CP172 proposes the introduction of an additional metric (user funds held) to determine the ad valorem Levy payable.

Some of the reasons set out in CP172, for the proposed changes, are as follows:

• improved consistency in how the Levy is determined across industry categories;
• addressing the “cliff edges” that currently arise with PRISM impact-based scales, which CP172 highlights, can result in a substantial increase or decrease in the Levy a firm pays from one year to the next if their impact category changes;
• more proportionate contributions;
• more transparency for firms; and
• alignment with the development of the Central Bank’s approach to regulation and supervision.

Insurance undertakings

Some of the proposed changes here are as follows:

• firms that are authorised in Ireland will be allocated to one of four sub-categories: captive and non-captive insurers classified as small and non-complex undertakings (“SNCUs”) / life undertakings (including third country branches) / non-life undertakings (including third country branches) / reinsurance undertakings (including third country branches);
• firms that are authorised in another country EEA state will continue to be allocated to one of the existing subcategories B2, B3, B5a, B5b, B6 and SPRVs to B9, for the time being;
• a flat levy rate would apply to SNCU undertakings, while for life, non-life and reinsurance undertakings the Levy would comprise a minimum amount plus a variable amount, split 50% by reference to gross written premium and 50% by reference to technical provisions; and
• no change is currently proposed for insurance undertakings authorised in another EEA state or for special purpose reinsurance vehicles, although CP172 does flag that the Central Bank is reviewing its approach to firms operating on a freedom of establishment or freedom of services basis.

Investment firms

Some of the changes set out in CP172 are as follows:

• firms authorised in Ireland will be allocated to one of six subcategories: investment firms not holding client assets / investment firms holding client assets / trading firms / organised trading facilities and multilateral trading facilities / regulated market operators / broker dealers. CP172 sets out the basis for the calculation of the Levy payable for each of these sub-categories; and
• firms authorised in another EEA state, which have established a branch in Ireland, will continue to be allocated to category D11, although CP172 does flag that the Central Bank is reviewing its approach to firms operating on a freedom of establishment or freedom of services basis.

Retail credit and credit servicing firms

Firms will continue to be allocated to one of three sub-categories: retail credit firms / credit servicing firms / firms in wind-down. For each sub category, CP172 sets out the basis on which the applicable Levy will be calculated.

Payment institutions and e-money institutions

Currently, the Levy is based solely on the value of transactions, with an additional amount payable by any firm rated as ultra high impact from an anti-money laundering / combatting the financing of terrorism perspective.

Some key elements of the new approach are as follows:

• the Levy will be made up of a minimum amount plus a variable amount, with CP172 stating that it is proposed to set the minimum amount at a higher level than currently applies to “reflect the increase in the scale of firms operating in this sector in recent years and its importance in the financial system and the consequent greater supervisory attention.”;
• a further amount will be payable based on the number of PSD agents a firm has appointed; and
• in future, the variable amount will be based on the value of user funds held in addition to the value of transactions metric

CASPs

CP172 notes that a flat rate currently applies to the crypto asset service providers (“CASPS”) category but flags the Central Bank’s intention to move to an ad valorem approach in due course as the sector grows and regulatory returns mature. This will be the subject of a separate consultation.

Firms authorised in another EEA state

CP172 highlights that the scale of such activities has increased significantly in recent years, for example in the banking sector. CP172 goes on to note that different approaches to the Levy are currently adopted across industry categories and states that in the coming months a comprehensive review of the methodologies that apply and metrics used will be completed. The Central Bank will undertake a further consultation in respect of any material changes proposed. In the meantime, CP172 states that the current structures will continue to apply, although the quantum of the Levy amounts payable will be reviewed and increased where appropriate to ensure they reflect the scale of activities of some of the providers based overseas.

Phased implementation

In the interests of allowing firms to plan for the changes set out in CP172, it is proposed that the new methodologies are implemented over a four-year transition period. This will mean that PRISM impact categorisation will continue for Levy purposes during the transition. CP172 provides examples as to how amounts payable by a firm in an industry category, where the methodology is changed, would be calculated under the phased approach.

FAQs

The Central Bank has also published an FAQ page, addressing various matters, such as, the objectives and scope of CP172.

Next steps

CP172 is open for feedback until 8 January 2027. The Central Bank will hold an industry seminar to discuss the proposed changes during the consultation period. More information will be provided in due course.

 

 2. Central Bank updates MiFID communications webpage and publishes various MiFID forms

 

On 17 September 2026, the Central Bank of Ireland (“Central Bank”) announced that, from 24 September 2026, applicant firms seeking an authorisation and all other post-authorisations under the markets in financial instruments directive (“MiFID”) will be required to submit applications and related documentation through the Central Bank Portal (“Portal”).

The Portal is intended to offer a streamlined single submission platform, improved transparency on application status, secure messaging with the Central Bank, and the ability to retrieve previously submitted documentation.

To aid applicant firms with MiFID authorisation submissions, and all other post-authorisation submissions, the Central Bank has published a systems submission guidance document (“Guidance”). This Guidance provides step-by-step system guidance for submission on key authorisation and post-authorisation activities: authorisations / extensions / revocations / acquiring transactions.

The Central Bank has also highlighted the request changes self-service functionality, which allows firms to update key information directly via the Portal.

On foot of the change to the new Portal submission mechanism, the following forms have been updated to reference the Portal submission:

• application form for withdrawal (voluntary revocation) of authorisation of a MiFID investment firm;
• guidance note on application for withdrawal (voluntary revocation) of authorisation of a MiFID investment firm;
• MiFID investment firm authorisation application form; and
• authorisation guidance note on completing an application form for authorisation as a MiFID investment firm.

The Central Bank has also updated the following MiFID webpages on its website:

• revocations process for a MiFID investment firm authorisation under the European Union (Markets in Financial Instruments) Regulations 2017;
• MiFID Communications webpage; and
• forms for MiFID firms – as stated above, from the 24 September 2026, applicant firms seeking an authorisation and all other post-authorisations under MiFID will be required to submit application related documentation through the Portal.

1. ESAs publish Autumn 2026 update on risks and vulnerabilities in the EU financial system

 

On 23 September 2026, the European Supervisory Authorities (“ESAs”) published the Autumn 2026 joint committee, cross-sectoral, update on risks and vulnerabilities in the EU financial system (“Update”).

The Update identifies external dependencies, emerging technologies and private credit as key vulnerabilities for the EU financial system. In a related press release, the ESAs caution that reliance on non-EU providers and infrastructures could amplify the impact of geopolitical shocks and operational disruptions, with dependence on ICT service providers outside the EEA highlighted as an area of particular concern, together with growing cyber risks linked to increasingly capable AI models.

Insurance and IORPs

Insurance and the Institutions for Occupational Retirement Provision (“IORPs”) sectors demonstrate strong fundamentals in an evolving risk landscape. The Update highlights that median solvency ratios remain stable for both life and non-life insurers with non-life profitability having remained stable overall for non-life insurers. As regards IORPs, the Update highlights that ongoing transitions from defined benefit to defined contribution schemes could impact IORPs’ risk profiles and investment strategies over time. The Update states that no one risk dominates but geopolitical, market, demographic, climate and technology risks could “self-reinforce” requiring a forward-looking, system-wide approach to protect financial stability and policyholders.

Some further matters referenced by the Update include:

• geopolitical tensions and the Iran war add volatility and weigh on growth;
• higher defence spending and sovereign issuance may increase yields and reprice credit spreads;
• over the longer term, cyber risk repricing, stricter underwriting, and more exclusions, could reduce coverage availability; and
• more frequent and severe NatCat events could widen protection gaps, reinforcing the need for actions on prevention incentives, consumer risk awareness and European risk-pooling solutions.

Banking

The Update notes that European banks continue to operate from a position of strength in a rapidly evolving risk environment, with profitability remaining strong and resilient. Some further matters highlighted are as follows:

• capital ratios remain at high levels driven by organic capital creation;
• overall, asset quality is resilient but with “persistent divergencies”; and
• operational risks continue to rise with cyber and fraud risk being the main drivers, with the Update flagging that “Vastly enhanced threat capabilities of Frontier AI models raise concerns about the sector’s capacity to cope.”

Policy recommendations

In terms of policy recommendations, the Update advises that relevant authorities and financial institutions should be ready to respond to geopolitical challenges. Some of the recommendations are as follows:

• strengthen resilience to geopolitical risk, for example by using resilience testing;
• strengthen crisis preparedness and resolution coordination, for example, recovery plan dry runs; and
• enhance regulatory effectiveness and adaptability.

Monitoring and managing risks associated with external dependencies, private credit and AI is advised, with some of the recommendation being as follows:

• monitor and risk manage exposures to non-EEA entities, with a private credit focus;
• continue monitoring dependencies on non-EU / EEA service providers; and
• plan and prepare for risks stemming from the rapid development of AI and quantum computing.

 

2. ESMA publishes its annual work programme for 2027

 

On 28 September 2026,  the European Securities and Markets Authority (“ESMA”) published its 2027 Annual Work Programme (“Programme”). The Programme is based on the implementation of ESMA’s multi – annual strategy for 2023 – 2028.

The Programme highlights that it builds on existing priorities / activities, while also taking into account emerging priorities on foot of the market integration and supervision package (“MISP”) proposals and the ongoing progress as regards the simplification and burden reduction agenda. In this regard, its is highlighted that the Programme “marks a decisive shift from analysis and groundwork to implementation and concrete delivery, building on the foundations laid in 2025 and 2026 and bringing key strategic cycles to completion.”

Some of the areas of focus of the Programme include:

• coordinating the preparedness and readiness of the EU’s financial sector for the T+1 settlement target date of 11 October 2027;
• as regards direct supervisory responsibilities, ESMA will advance its supervision of consolidated tape providers and external reviewers of European green bonds. It will also be focused on its increased supervisory responsibilities under the revised benchmarks regulation, including the supervision of EU benchmark administrators endorsing third-country benchmarks;
• 2027 will be the first year that ESMA will be supervising ESG rating providers. In that regard, ESMA will be assessing business models and potential risks to investors and market integrity as part of its risk-based supervisory approach;
• the Programme highlights ESMA’s continued focus on compliance with DORA across all of its direct supervisory mandates;
• the monitoring of markets is a critical priority for ESMA, particularly in the context of continued instability in global markets, heightened geopolitical tensions, and evolving macro-financial risks;
• as regards MiCA activities across 2027, ESMA will focus on promoting supervisory convergence for crypto assets service provider supervision and operational resilience. It is also flagged that, subject to the Board agreement, it intends to move to the next phase of the centralised system for market surveillance of crypto assets;
• ESMA will continue enhancing its data capabilities and promoting innovation, including by progressing the ESMA data platform, deploying AI-based supervisory tools. Additionally, ESMA will further supporting the roll-out of the European single access point;
• the holistic review of transaction reporting under the markets in financial instruments regulation, the European market infrastructure regulation and the securities financing transactions regulation is set to move into active implementation in 2027. This is aimed at establishing streamlined “report-once” frameworks that reduce the burden on reporting entities;
• ESMA will deliver key outputs under the retail investment strategy, including technical advice to the European Commission and technical standards on investor protection topics such as disclosures and costs and charges; and
• ESMA will also be responsible for guiding market participants and NCAs including in relation to the revised sustainable finance disclosure regulation framework and the changes introduced by the Omnibus package to the corporate sustainability reporting directive, the European and the EU Taxonomy.

Welcoming the publication of the Programme, Verena Ross, Chair of ESMA, stated:

“2027 marks an important milestone for the Savings and Investments Union (SIU) as many of ESMA’s strategic initiatives move into the delivery phase. While co-legislators continue their work on the Market Integration and Supervision Package (MISP), ESMA is already advancing on key elements of the SIU agenda including initiatives to simplify the regulatory, reporting and supervisory framework. ESMA also continues to modernise the way it supervises markets through greater use of data and technology.

This work programme reflects ESMA’s commitment to strengthening the Single Market, protecting investors and safeguarding financial stability. It enables ESMA to remain agile in the face of volatile and risky market conditions, while responding effectively to rapidly changing needs and priorities.”

1. Central Bank announces second reduction to insurance compensation fund levy to 0%

 

On 29 September 2026, the Central Bank of Ireland (“Central Bank”) announced the reduction of the Insurance Compensation Fund (“Fund”) levy (“Levy”) from 1% to 0% as of 1 January 2027.

This is the second change to the Levy in two years following last year’s reduction from 2% to 1% – for more information, see FIG Top 5 at 5 dated 9 October 2025.

In a letter sent to Mr. Simon Harris TD, Tánaiste and Minister for Finance, it is highlighted that the Central Bank is of the opinion that financial support from insurers is not currently required and should discontinue until at least the next anniversary of the review of the state of the Fund.

This reduction will affect many customers holding non-life insurance policies, such as home and motor insurance, if the insurance firm is regulated by the Central Bank.

Expectations

The Central Bank expects firms to act in the best interests of consumers. As regards firms which explicitly pass the levy on to policyholders as a separate charge listed within their documentation, the Central Bank expects that the reduction is reflected in the policy from 1 January 2027 onwards.

This expectation is also applicable to current policies which are paid in instalments into 2027 and where the Levy charge is explicitly stated within the policy, the Levy should be updated to reflect the reduction from 1 January 2027

Welcoming the reduction in the Levy, Deputy Governor at the Central Bank, Mary-Elizabeth McMunn, stated that:

“The Insurance Compensation Fund protects eligible policy holders in the event of their insurer going into liquidation. The changes announced today reflect the financial position of the fund and follows the full repayment of the outstanding loan balance to the Exchequer. The reduction of the levy will positively impact a large cohort of policyholders in Ireland. The Central Bank will continue to conduct annual reviews of the fund and, should circumstances change, the levy may change in the future.”

 

2. EIOPA publishes follow up note to its April 2025 document on better regulation and supervision

 

On 28 September 2026, the European Insurance and Occupational Pensions Authority (“EIOPA”) published a follow-up note (“2026 Note”) to its April 2025 document (“2025 Document”) setting out its approach regarding simplifying regulation and reducing administrative burdens to help boost European competitiveness.

That 2025 Document addressed the issue of simplification and burden reduction under three main headings, being, policy work / policymaking / supervision – for more information, see FIG Top 5 at 5 dated 10 April 2025.

Taking stock

The 2026 Note looks at the progress that EIOPA has made so far and also sets out EIOPA’s ongoing efforts and future plans when it comes to simplifying regulation and reducing unnecessary complexity without compromising financial stability, consumer protection or effective supervision.

Some of the key actions already taken by EIOPA as regards simplification and burden reduction are as follows:

• reducing quarterly reporting templates by 26% and annual reporting templates by 30% for solo undertakings under the revised Solvency II Directive, with even more substantial reductions for small and non-complex undertakings;
• implementing a new proportionality framework under Solvency II;
• making greater use of existing reported data where possible instead of creating new reporting obligations; and
• reviewing 25 sets of guidelines and shortening them by approximately one third, while, at the same time, adopting a simplification-driven approach to new level 3 measures, ensuring they are introduced only where there is a clear supervisory need.

Future plans

With reference to the three headings in the 2025 Document, some of the initiatives detailed in the 2026 Note are set out below:

Policy work – building on progress made, EIOPA will continue its work on simplification, burden reduction and the strengthening of supervisory convergence. Some matters highlighted are as follows:

• EIOPA’s advisory committee on proportionality is further strengthening its approach to proportionality by developing a methodology, together with a set of guiding principles, to support its consistent application across the work of all EIOPA’s working group structures;
• experience gained from applying DORA will inform the review planned for 2028, including possible simplification of information registers, cyber incident reporting and the designation process for critical ICT third-party providers;
• EIOPA will finalise its report on potential legislative and non-legislative measures for integrated data reporting by the end of 2026, continue working with the European AI Board and the European AI Office to promote coherence between horizontal and sectoral legislation;
• EIOPA will postpone the next EU-wide bottom-up insurance stress test from 2027 to 2028 – this is targeted at easing pressure during the initial implementation of Solvency II and the insurance recovery and resolution directive (“IRRD”), while continuing to develop top-down stress testing;
• as regards the retail investment strategy (“RIS”), EIOPA will focus on implementing the new framework by delivering technical advice to the European Commission (“Commission”), developing regulatory and implementing technical standards, issuing guidelines and developing new IT tools;
• as regards the new insurance distribution directive (“IDD”) disclosures, EIOPA will leverage and ensure consistency with existing disclosure templates, such as the non-life insurance product information document; and
• EIOPA will identify targeted opportunities to simplify requirements under the IDD with a future review in mind. This work will seek to remove unnecessary complexity and streamline requirements where appropriate.

Policymaking – some of the matters highlighted here, include:

• EIOPA continues to support simplification from the earliest stages of the EU legislative and regulatory cycle;
• EIOPA highlights that, in its technical input to the Commission and the co-legislators, it looks to identify unnecessary complexity, assess the feasibility and proportionality of proposed requirements, and promote legislation that takes implementation considerations into account from the outset. Additionally, the 2026 Note emphasises that adequate consultation periods and realistic implementation timelines are equally as important for effective implementation; and
• EIOPA will support the Commission regarding the identification of overlapping application dates, compressed transitional periods or the simultaneous implementation of major initiatives that could place undue pressure on NCAs, EIOPA or market participants.

Supervision – some of the matters highlighted here, include:

• supervisory unity can help ensure clear expectations, consistent supervisory approaches and timely and effective enforcement. It also promotes simplification and burden reduction as it allows EIOPA and NCAs to coordinate actions from the start;
• taking account of the fact that supervisory unity of itself might not always be enough to achieve consistent outcomes, the 2026 Note suggests that consideration could be given to strengthening the mandate of the EIOPA board of supervisors, including, the ability to intervene and adopt directly enforceable measures where an NCA is unable or unwilling to act; and
• the 2026 Note highlights that where harmonisation alone is not enough to ensure consistent and effective supervision across the EU, then a more centralised approach may be needed, emphasising that the guiding principle should “be to harmonise where possible and centralise where needed.”

1. EBA consults on draft ITS on joint decisions on institution specific capital and liquidity requirements

 

On 25 September 2026, the European Banking Authority published a consultation (“Consultation”) on draft implementing technical standards (“ITS”) on conditions of application of the joint decision process for institution-specific prudential requirements under article 113 of directive 2013/36/EU (“CRD”).

Article 113 of CRD establishes the framework for joint decisions within supervisory colleges as regards institution‑specific prudential requirements for cross‑border banking groups. In 2014, the EBA developed ITS setting out harmonised procedures, timelines and templates for the joint decision process.

Since 2014, there have been a number of developments as regards the prudential and supervisory framework, with the result that, the EBA now proposes a comprehensive revision of the ITS on joint decisions. Some of those developments include:

• amendments introduced by CRD V which explicitly extended the scope of joint decisions to include pillar 2 guidance (“P2G”) and leverage‑ratio related elements; and
• supervisory practices have evolved towards a more risk‑based, proportionate and continuous approach, supported by revisions to the EBA guidelines on the supervisory review and evaluation process (“SREP”).

In addition, it is highlighted that the 2014 ITS are not sufficiently granular such that they now align with current supervisory practices.

The revised ITS:

• update the scope of application to reflect the current legal framework under article 113 CRD, including the explicit coverage of P2G and leverage‑ratio elements;
• aim to better align the joint decision process with the revised SREP framework, particularly as regards proportionality, focusing on key supervisory concerns;
• support a more holistic and coordinated assessment of institutions’ prudential requirements and guidance;
• explicitly incorporate supervisory measures of a qualitative nature in the joint decision process, reflecting established college practices and supporting transparency and coherence in their communication to institutions; and
• streamline and simplify templates, by introducing a single, reduced and integrated risk assessment report.

Next steps

The Consultation is open for feedback until 4 January 2027. The EBA will hold a virtual public hearing on 10 November 2026 – interested parties can register here by 9 November 2026.

 

2. Commission call for advice from ESAs on private credit activities and exposures of EU banks and NBFIs

 

On 24 September 2026, the European Banking Authority (“EBA”) published a letter received by the European Supervisory Authorities (“ESAs”)  from the European Commission (“Commission”), together with an accompanying call for evidence (“CfA”). The CfA seeks the ESAs technical advice by way of a targeted assessment of the private credit activities and exposures of EU banks and non-bank financial intermediaries (“NBFIs”).

Context

The CfA highlights that it comes in the context of rapid growth in private credit, as NBFIs have expanded lending to corporates and individuals (sometimes with banks involved on the funding side), with non-bank credit to non-financial counterparties in the EU now reaching around 21% of total credit (72% in the US).

The CfA states that since the start of 2026, several US private credit funds, offering quarterly redemption windows, have seen redemption requests well above historical averages and have activated redemption gates, which the CfA flags as a possible early warning sign on credit quality of private credit activities. It is also highlighted that supervisors currently have limited visibility into EU banks’ and NBFIs’ exposures to private credit, including cross-border exposures and interconnections between banks and NBFIs.

Focus of advice

The Commission has requested that the advice focus on:

• identifying common definitions of private credit activities;
• mapping exposures;
• identifying data gaps in the existing reporting framework on a best effort basis;
• assessing the level of retail investor’s participation; and
• mapping the interconnection between banks and NBFIs through private credit activities.

The CfA asks that, in providing the advice, that the ESAs take account of the objective of ensuring adequate risk identification on a system-wide basis and improved monitoring by identifying information to be included in the regulatory reporting.

Next steps

The Commission has asked the ESAs to deliver the technical advice within 6 months of receiving the CfA.

1. Central Bank publishes guidance for CASPs on EU sanctions transaction bans and reporting obligations

 

On 23 September 2026, the Central Bank of Ireland (“Central Bank”) published specific guidance (“Guidance”) for crypto asset service providers (“CASPs”) as regards requirements around reporting obligations under Regulation (EU) 833/2014 on restrictive measures (“Regulation”), particularly in relation to transaction bans.

The Guidance identifies articles 5ad, 5ba and 5bb of the Regulation as being particularly relevant to CASPs, in terms of compliance obligations, but does highlight that this list is not exhaustive and that firms must ensure that they are up to date in terms of such compliance obligations.

Commission clarification on transaction ban

The Guidance outlines that the Central Bank sought clarification from the European Commission (“Commission”) as regards expectations around the transaction ban. On foot of such engagement, the Guidance confirms CASP specific guidance when it comes to incoming transactions, as follows:

• where it is impossible for an EU operator to refuse an incoming transaction from an entity subject to the transaction ban, for example, due to technical issues, the CASP should hold the assets rather than return them, as returning them would itself breach the Regulation;
• funds can be returned to the sender only where appropriate due diligence has been completed and the firm has verified that no sanctioned entity or platform will be involved in the return, for example where the sender provides a verified “clean” address unaffiliated with the prohibited platform;
• due to the fact that the ban applies only to entities listed in the Regulation, a transaction can proceed following appropriate due diligence if no listed persons or entities are involved, whether directly or indirectly. In this regard, each transaction must be assessed individually; and
• CASPs are required to report and supply any information to the NCA within two weeks of acquiring it.

Reporting requirements in Ireland

• any breaches, or potential circumvention of the transaction bans, must be reported to the Central Bank, and separately to An Garda Síochána; and
• reports should be submitted using the financial sanctions return (“FSR”) via the external Central Bank portal, supported by an existing FSR guidance document.

Completing the FSR and upcoming updated FSR form

The Guidance acknowledges that some CASPs are having difficulty completing certain fields on the FSR as regards transaction bans, noting that the current guidance document does not deal with CASP specific circumstances. In that regard, the Guidance flags that an updated FSR form, better suited to CASP requirements, is being developed and will be made available on the Central Bank’s external portal in due course. CASPs are advised to continue to update the FSR on a best-efforts basis and submit it via the external Central Bank portal. In advance of the availability of the updated FSR form, the Guidance sets out detailed instructions for the submission of future FSRs.

 

2. EBA publishes response to May 2026 Commission consultation on review of MiCA

 

On 24 September 2026, the European Banking Authority (“EBA”) published its response (“Response”) to the European Commission’s (Commission”) May 2026 targeted consultation on the review of the regulation on markets on crypto assets (“MiCA”) – for more information, see FIG Top 5 at 5 dated 21 May 2026.

Areas covered

The Response addressed four areas:

• scope and definitions;
• requirements applying to asset referenced tokens (“ARTs”) and electronic money tokens (“EMTs”) and their issuers;
• the appropriateness of the legal framework for crypto asset service providers (“CASPs”); and
• policy areas beyond the current scope of MiCA.

Recommendations

Some of the recommendations made / matters highlighted in the Response are as follows:

• the existing MiCA requirements for issuers of ARTs and EMTs are broadly appropriate, however, in the case of third-country multi-issuer schemes the EBA recommends that the Commission consider regulatory changes to strengthen the framework aimed at mitigating the significant to very significant risks posed by these schemes. Additionally, the Response recommends that the Commission should review whether the reserve requirements for issuers, in particular the minimum amount in the form of deposits, could be reduced;
• the Response highlights challenges as regards the classification of crypto-assets under MiCA, noting that this can result in avoidable costs and delays for firms in product rollout – impeding innovation and competitiveness. Accordingly, the Response recommends that the Commission look at steps aimed at clarifying the scope of, and the definitions in, MiCA;
• consideration should be given to the regulation of crypto asset lending, including where CASPs facilitate access to decentralised lending protocols; and
• the reporting framework for issuers and CASPs should be reviewed to ensure effective supervision and risk monitoring.

Next steps

In a related press release, the EBA highlights that it will continue to support the Commission’s review of MiCA in the interests of a “robust, proportionate and future-proof regulatory framework for the EU crypto-asset sector.”