Welcome to the FIG Top 5 at 5

1. Governor of the Central Bank signs Central Bank Reform Act 2010 (Sections 20 And 22) (Amendment) Regulations 2026 – PCF Regulations

On 28 January 2026, the Governor of the Central Bank of Ireland (“Central Bank”) signed the Central Bank Reform Act 2010 (sections 20 And 22) (Amendment) Regulations 2026 (“PCF Regulations”).

As set out by the Central Bank, in its feedback statement (“Feedback Statement”) to its consultation on amendments to the fitness and probity regime (“CP160”), some changes were to be made to the pre-approval controlled functions (“PCF”) list identified in CP160. The changes have now been effected by the signing of the PCF Regulations. The PCF Regulations have removed two roles, as follows:

• PCF-24 head of traded markets; and
• PCF-25 head of international primary markets.

Safeguarding

The PCF Regulations have also introduced two new PCF roles, as follows:

• head of safeguarding for payment institutions and electronic money institutions (PCF-56); and
• head of safeguarding for crypto asset service providers (PCF-57).

The role of head of safeguarding came into operation on 10 February 2026.

In-situ process

With effect from 10 February 2026, individuals proposed for the PCF-56 and PCF-57 roles, are required to submit a PCF application via submission of the individual questionnaire (“IQ”). In situations where a firm has identified an individual who is deemed to be already carrying out the PCF-56 or PCF-57 role prior to 10 February 2026, an IQ does not need to be submitted.

However, the Central Bank has confirmed that the firm is still required to carry out the necessary due diligence on these PCF role holders as set out in the November 2025 guidance on the standards of fitness and probity. Once the due diligence is completed, the Central Bank has advised that the in situ submission can be completed via the fitness and probity section of the Central Bank portal.

Credit unions

As emphasised in the Feedback Statement, the separate PCF list will remain for credit unions.

Substantive review

As set out in CP160, the Central Bank will commence a review of the designation of PCF roles and the process adopted for applying for Central Bank pre approval, with a focus on the simplification and modernisation of the regulatory framework and particularly the importance of reducing regulatory burden for firms. The Central Bank will consult on proposed changes in 2026, with the introduction of revisions being implemented mid-2027 to coincide with a review of the senior executive accountability regime (“SEAR”).

2. Central Bank issues sole trader to single director company guidance and publishes industry notice on new authorisation process

On 4 February 2026, the Central Bank of Ireland (“Central Bank”) updated its dedicated brokers / retail intermediaries webpage by way of an industry notice (“Notice”) addressing the sole trader to single director company authorisation process.

New authorisation process

The Notice sets out that the Central Bank has introduced a new “streamlined” authorisation process for sole traders intending to become single director companies, explaining that this new process will apply in situations where the proposed single director company represents a continuation of an existing sole trader business. The process will not be available in certain circumstances, such as:

• changes to the business model or activities;
• the introduction of additional shareholders or directors;
• an expansion of regulatory authorisation; and
• where there are outstanding regulatory or supervisory issues, such as a risk mitigation programme.

Applicants are required to complete a confirmations based form, which the Central Bank has stated, is available on its portal.

Accompanying guidance

The Central Bank has also issued accompanying guidance for sole traders incorporating as single director companies (“Guidance”) under the Investment Intermediaries Act 1995, the European Union (Insurance Distribution) Regulations 2018, the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 and the Consumer Credit Act 1995.

The Central Bank strongly advises potential applicants to read the Guidance before submitting an application as its details the eligibility criteria and the circumstances whereby the new authorisation process may not be appropriate. Some of the areas addressed by the Guidance include:

• required notice to affected consumers under provision 3.11 of the Consumer Protection Code 2012 – on this point, the Notice and the Guidance highlight that notices should not be issued to consumers unless the sole trader is satisfied that there are no regulatory or compliance issues or concerns associated with the proposed transition. Where such issues exist, or where there is uncertainty, the Central Bank advises that sole traders should engage with the Central Bank before proceeding with the notification to consumers;
• professional indemnity insurance / complaints management / levies; and
• fitness and probity requirements.

1. ESAP Regulations are published in Iris Oifigiúil

On 13 February 2026, the following regulations, transposing the European Single Access Portal (“ESAP”) Regulation into Irish law, were published in Iris Oifigiúil:

SI No. 32 of 2026 European Union (European Single Access Point) Regulations 2026

SI No. 32  gives effect to Regulation (EU) 2023/2859 – the ESAP Establishing Regulation (“Regulation”). Further, it designates the Central Bank of Ireland, the Registrar of Companies, and the Pensions Authority as collection bodies for the collection of voluntary submissions of information.

SI No. 33 of 2026 European Union (European Single Access Point) (No. 2) Regulations 2026

SI No. 33 gives effect to Directive (EU) 2023/2864  – the ESAP Omnibus amending Directive (“Amending Directive”). This SI amends various pieces of financial services legislation in the context of the Amending Directive, such as:

• European Union (Insurance and Reinsurance) Regulations 2015;
• European Union (Capital Requirements) Regulations 2014;
• European Union (Bank Recovery and Resolution) Regulations 2015;
• European Union (Markets in Financial Instruments) Regulations 2017;
• European Union (Investment Firms) Regulations 2021; and
• Pension Act 1990;
• Central Bank Act 1942

SI No. 34 of 2026 the European Union (European Single Access Point) (No. 3) Regulations 2026

SI No. 34 gives effect to Regulation (EU) 2023/2869 – the ESAP Omnibus amending Regulation (“Amending Regulation”). This SI amends various pieces of financial services legislation in the context of the Amending Regulation, such as:

• Pensions Act 1990;
• Companies Act 2014;
• Central Bank Act 1942;
• European Union (Market Abuse) Regulations 2016;
• European Union (Key Information Documents for Packaged Retail and Insurance-based Investment Products (PRIIPS)) Regulations 2017;
• European Union (Sustainability-related Disclosures in the Financial Services Sector) Regulations 2021;
• European Union (Investment Firms) (No. 2) Regulations 2021;
• European Union (Pan-European Personal Pension Product) Regulations 2022; and
• European Union (Markets in Crypto-Assets) Regulations 2024.

Consultation

The Department of Finance carried out a public consultation (“Consultation”) on the exercise of certain national discretions in the transposition of the ESAP Regulation, although the majority of the provisions of the ESAP were to be transposed on a fully harmonised basis due to it being a technical transposition. For more information, on the Consultation, see FIG Top 5 at 5 dated 19 September 2025.

The national discretions related to the designation of a collection body / bodies and the use of a qualified electronic seal. As regards collection bodies, the Consultation feedback document (“Feedback”) states that the Minister for Finance (“Minister”) designates the Central Bank of Ireland, the Companies Registration Office, and the Pensions Authority as the collection bodies for the collection of information submitted on a voluntary basis. As for the electronic seal discretion, the Minister determined that the collection bodies may choose whether to require the use of a qualified electronic seal when submitting information for the purposes of ESAP.

2. Delegated Regulation amending Solvency II Delegated Regulation published in OJEU

On 18 February 2026, Commission Delegated Regulation (EU) 2026/269 (“Delegated Regulation”), which amends Commission Delegated Regulation (EU) 2015/35 (“Solvency II Delegated Regulation”), was published in the official journal of the EU (“OJEU”).

The Delegated Regulation  amends the Solvency II Delegated Regulation as regards technical provisions, long-term guarantee measures, own funds, equity risk, spread risk on securitisation positions, other standard formula capital requirements, reporting and disclosure, proportionality and group solvency.

The European Commission adopted the Delegated Regulation in October 2025 – for more information, see FIG Top 5 at 5 dated 6 November 2025.

Next Steps

The Delegated Regulation will enter into force on 10 March 2026, being 20 days after its publication in the OJEU,  and will apply from 30 January 2027.

1. EIOPA publishes revised guidelines on supervisory review process and market and counterparty risk exposures

On 13 February 2026, the European Insurance and Occupational Pensions Authority (“EIOPA”) published two sets of updated guidelines. This publication comes on foot of the review of the Solvency II Directive (“Solvency II”), whereby EIOPA is reviewing all existing guidelines related to Solvency II to ensure that all guidelines are up to date and in line with the legal framework as amended by the review of Solvency II.

Additionally, EIOPA has stated that its review of the guidelines is also aimed at simplifying and shortening guidelines, where possible, particularly where the guidelines are relevant for (re)insurance undertakings.

This most recent guideline review relates to the following guidelines:

• Revised guidelines on supervisory review process

The current guidelines were first issued in 2015 and based on the practical experience of their application since then, areas for improvement have been identified, specifically as regards the enhancement of flexibility and adaptability. The final report on these guidelines explains that the main changes relate to two objectives:

• updating the guidelines to ensure alignment with the most recent developments and best supervisory practices; and
• integrating processes and best practices to address new emerging topics and trends that have come to the fore since 2015.

Some of the amendments include further clarification on the risk assessment framework, particularly as regards the impact assessment and risk classification of insurance undertakings and groups. The revised guidelines also contain more detailed specifications for the sections on supervisory measures including, enhanced guidelines on the ladder of intervention, and on the creation of a supervisory plan that determines the intensity of supervision, specifying a minimum level of supervisory engagement.

The guidelines also contain new sections covering matters such as business model analysis / joint on-site inspections / early intervention measures / pre-emptive recovery planning / supervision of conduct of business. In the context of emerging risks, a general guideline was introduced to remind supervisory authorities to integrate the assessment of emerging risks into the supervisory review process. Additionally, specific references have been made to the supervision of IT risks, SupTech and sustainability risks.

EIOPA has highlighted that, although the guidelines are not directly applicable to the insurance industry, it is expected that they will improve predictability for insurers as regards interactions with supervisory authorities.

EIOPA consulted on these guidelines in July 2025.

Next Steps

The revised guidelines will apply from 30 January 2027 and until that date the guidelines issued in 2015 are applicable.

• Revised guidelines on the treatment of market and counterparty risk exposures in the standard formula

The current guidelines have been applicable since 2015 and based on experience and insights gained since then, some areas for improvement have been identified.

Some of the changes are as follows:

• the EIOPA Q&A process has shown that the principles grounding some of the guidelines are suitable for a more general application and so guidelines 2 and 6 have been amended to take account of the broader applicability of their underlying principles;
• guidelines 1, 2 and 7 have been deleted as it was thought that the legal provisions of Solvency II are already clear enough and guideline 9 has been shortened;
• guideline 8, which deals with securities lending and similar arrangements, has been deleted as it was not in line with the Solvency II Delegated Regulation; and
• there is a new guideline dealing with the treatment of leveraged funds.

The final report on the revised guidelines explains that the amendments are aimed at clarification and streamlining and there is no reduction of supervisory expectations, nor do they provide new guidance as to the application of the legal framework.

EIOPA consulted on these guidelines in December 2024 – for more information, see FIG Top 5 at 5 dated 12 December 2024.

Next Steps

A consolidated version of the guidelines will be published on EIOPA’s website and they will apply two months after they have been translated into the official languages of the EU.

2. EIOPA publishes first set of guidelines and draft RTS under IRRD

On 16 February 2026, the European Insurance and Occupational Pensions Authority (“EIOPA”) published three sets of guidelines and three final reports containing draft regulatory technical standards (“RTS”) under the Insurance Recovery and Resolution Directive (“IRRD”).

EIOPA consulted on the guidelines and the draft RTS in April 2025 – for more information, see FIG Top 5 at 5 dated 1 May 2025.

The guidelines and the RTS published are as follows:

• Guidelines on the criteria for the identification of critical functions

These guidelines contain criteria as regards the identification of critical functions, that if disrupted, could have a severe impact on policyholders, beneficiaries and the wider economy, including financial stability. The identification of critical functions is therefore, EIOPA explains, a key element in the process of resolution planning. The final report on these guidelines states that the guidelines were refined, without changing the general approach taken in the April 2025 consultation paper.

• Guidelines on further details on the measures to remove impediments to resolvability and the circumstances in which each measure may be applied

This set of guidelines state that they are limited to the alternative measures set out in article 15(5) of IRRD. They allow for some flexibility for resolution authorities as regards application. Additionally, they contain a number of measures related to proportionality.

• Guidelines to specify further the matters and criteria for the assessment of the resolvability of undertakings or groups

These guidelines are aimed at the promotion of a level playing field between member states by providing a minimum framework of elements to be considered in the assessment of resolvability, while retaining discretion for resolution authorities to adjust the assessment to the specifics of the undertakings and groups under their remit.

• Final report on the draft RTS on criteria for pre-emptive recovery planning requirements and methods on determining market shares

These draft RTS set specific criteria for selecting which (re)insurers undertakings and groups should be required to prepare pre-emptive recovery plans and details the methods for calculating the market share of undertakings subject to these requirements, ensuring that at least 60% of the respective market is covered.

• Final report on the draft RTS on the content of pre-emptive recovery plans

The draft RTS contain the minimum elements that should be included in pre-emptive recovery plans, including the description of the undertaking or group, the framework of indicators, the range of remedial actions, and the communication strategy. The RTS are targeted at ensuring that insurers have a robust, effective plan to restore their financial position should there be a significant deterioration.

• Final report on the draft RTS on the content of resolution plans and group resolution plans

In setting out the minimum elements that are to be included in resolution plans and group resolution plans, these draft RTS aim to provide a framework that ensures operational preparation for resolution.

Burden reduction

EIOPA has stated that it has specifically taken account of simplification and burden reduction in drafting the above guidelines and RTS, setting out such measures in an annex, available here.

Next Steps

The draft RTS will be submitted to the European Commission, who will decide whether to adopt them  or not.

On 11 February 2026, the European Commission (“Commission”) launched a targeted consultation (“Consultation”) and a call for evidence (“CfE”) on the competitiveness of the banking sector in the EU. Amongst other matters, the Consultation and the CfE are seeking feedback on the domestic and global performance of EU banks.

SIU

The Consultation and the CfE will be taken into account by the Commission in its upcoming report on the competitiveness of the EU banking sector, which the Commission explains, is a part of the savings and investment union (“SIU”) strategy. The Report is expected to be published in Q3 2026 and is aimed at:

• assessing the situation of the banking system in the single market with a focus on competitiveness; and
• setting out an evidence based, positive and forward-looking agenda for the future of banking in the EU.

The Commission has stated that banks are a crucial component when it comes to achieving the objectives of the SIU, due to the fact that they are the main source of financing for most households and businesses in the EU. In addition, banks play a key role in channelling savings into productive investments.

Consultation

The Consultation and the CfE both acknowledge the increased resilience of the EU banking sector over recent years, noting that they are well capitalised and hold significant capital and liquidity buffers. However, it is noted that barriers remain – resulting in a fragmented single market and limiting the competitiveness of EU banks, with some of the identified challenges as follows:

• obstacles regarding seamless cross border activity;
• persistent regulatory and supervisory fragmentation, including differences in national implementation;
• the involvement of multiple authorities both at EU and national level; and
• barriers that constrain an efficient allocation of capital and liquidity across the EU.

Against that background, the Consultation seeks feedback to help inform the preparation of the Commission’s work in achieving a “true single market” in banking, improving capital mobility across the EU and fostering international competitiveness of the EU banking sector. Feedback is sought on three main areas:

1. banking competitiveness in the EU and globally – some of the areas addressed in the subsections include: cross-border activities in the EU banking sector / an international level playing field / digitalisation;

2. the single market and the banking union – some of the areas covered in the subsections include: the impact of prudential requirements on market integration / non-prudential barriers to market integration / sovereign exposures and risk reduction; and

3. complexity and effectiveness of the regulatory framework – some of the areas covered in the subsections include: prudential framework / macroprudential framework / crisis management framework / Proportionality / corporate governance.

CfE

Running in tandem with the Consultation, the CfE states that it aims to evaluate whether the current prudential, supervisory and crisis management frameworks are fit for purpose given evolving market dynamics, digitalisation and global competitive pressures. The CfE highlights that expert stakeholders are invited to submit their views via the Consultation, given the greater level of detail involved.

Next Steps

The Consultation is open for feedback until 19 April 2026, while the CfE is open for submissions until 12 March 2026.

On 12 February 2026, the European Banking Authority (“EBA”) published an opinion (“Opinion”) on the supervisory priorities at the end of the transition period under the EBA’s “No Action Letter” (“Letter”) on the interplay between the revised Directive on payment services in the internal market (“PSD2”) and the Regulation on markets in crypto-assets (“MiCA”).

June 2025 Letter

The Letter provided advice, which was requested by the European Commission, on the  interplay between PSD2 and MiCA in relation to crypto assets service providers (“CASPs”) transacting electronic money tokens (“EMTs”) that qualify as a payment service. The advice in the Letter was to the effect that CASPs could continue to provide these services by obtaining a second licence after a nine month transition period – which ends on 2 March 2026. For more information, see FIG Top 5 at 5 dated 12 June 2025.

February 2026 Opinion

The EBA explains that it has issued the Opinion to advise national competent authorities (“NCAs”) on how to prioritise their authorisation efforts once the transition period comes to an end on 2 March 2026. The Opinion sets out three situations, that may arise for a CASP under MiCA intending to continue carrying out EMT transactions that qualify as a payment service, when the transition period ends.

Briefly, those three scenarios are as follows:

• where a CASP has successfully obtained an authorisation as a payment institution (“PI”) or an electronic money institution (“EMI”) or has partnered with an authorised payment service provider (“PSP”) – in that case, the CASP may continue to carry out the EMT transactions in line with its PSP authorisation or that of its partner PSP;
• if a CASP has applied for authorisation as a PI / EMI, but has not yet been authorised, then the NCA, under PDS2, may allow the CASP to continue to carry out EMT transactions that qualify as payment services pending the CASP’s PSD2 authorisation. This is subject to a number of conditions being met. If the specified conditions are met, then the NCA must ensure that the CASP ceases all marketing related to EMTs that qualify as a payment service and does not provide such services to any new clients – this does not apply to CASPs that are permitted under national law, transposing article 143(3) of MiCA, to continue providing their services until 1 July 2026, or the date on which such entities are granted or refused authorisation under article 63 of MiCA; and
• finally, where a CASP has not submitted an application for authorisation as a PI / EMI or it has submitted such an application but has not met one or more of the conditions specified in the second scenario, above, an NCA is advised to require the CASP, as of 2 March 2026, to:
  • stop providing EMT services that qualify as a payment service under PSD2; and
  • offboard clients of EMT services that qualify as a payment service under PSD2.

The Opinion advises NCAs, where necessary,  to cooperate with the relevant national authority under MiCA and / or other national enforcement authorities to ensure compliance.