Author: Selwyn Manning

Source: European Banking Authority

The European Banking Authority (EBA) today launched two public consultations on draft Guidelines and draft Regulatory Technical Standards (RTS) on initial margin model authorisation (IMMA) under the European Market Infrastructure Regulation (EMIR). These consultations mark an important step in ensuring that models used for the exchange of initial margin for non-centrally cleared derivatives are subject to a robust, efficient and harmonised authorisation process across the EU.  The consultations run until 17 June 2026.

Under the new EMIR 3 rules, counterparties using internal initial margin models must obtain prior authorisation from their competent authority (CA). The two regulatory products published today aim to support a transparent, predictable, and consistent approach to model assessment and authorisation throughout the Union. The draft Guidelines specify the minimum information and documentation that counterparties must submit for their application to be considered complete. These requirements build on the information already outlined in the Annex to the EBA’s No Action Letter on the application of EMIR, published in December 2024, which will cease to apply once the new Guidelines enter into force.

The Draft RTS set out the assessment techniques that CAs will apply when authorising initial margin models. They only apply to counterparties belonging to groups with an aggregate monthly average notional amount (AANA) of non-centrally cleared over-the-counter (OTC) derivatives exceeding EUR 750 billion. Where an internal model relies on a pro-forma model, it must be validated by the EBA prior to authorisation by the CA.

Consultation process

Responses to the consultation can be sent by clicking on the “send your comments” button on the consultation page.

All contributions received will be published after the consultation closes, unless requested otherwise. The deadline for the submission of comments is 17 June 2026

A public hearing on this consultation will take place on 4 May 2026 from 10:00 to 12:00 CEST. Deadline for registration is 30 April 2026 at 16:00 CEST.

Legal basis and background

Regulation (EU) 2024/2987 (EMIR 3) introduced the requirement to request prior authorisation for the use of initial margin (IM) models as a risk-mitigation technique for OTC derivative contracts not cleared by a central counterparty.

Article 11(3), sixth subparagraph, EMIR empowers the EBA, in cooperation with ESMA and EIOPA, to issue guidelines or recommendations with a view to ensuring the uniform application and authorisation process of the risk-management procedures.

Under Article 11(15) of EMIR the EBA in cooperation with ESMA is mandated to establish supervisory procedures for the initial and ongoing validation of the risk management procedures (i.e. Initial margin models) referred to in Article 11. This scope of firms captured includes credit institutions authorised in accordance with Directive 2013/36/EU and investment firms authorised in accordance with Directive 2014/65/EU that have, or belong to a group that has, a monthly AANA of non-centrally cleared OTC derivatives that exceeds EUR 750 billion. The calculation of AANA is set out in regulatory technical standards developed by the ESAs

The EBA’s Decision on the EU central validation of ISDA SIMM, published on 1 March 2026, provides further clarity on the EBA’s role in validating pro‑forma initial margin models prior to CA authorisation. Initial margin models that are based on pro forma models will need to first be validated by the EBA. 

Source: Government of the Netherlands

News item | 09-03-2026 | 11:30

Mr Berendsen said, ‘With this deployment, the Netherlands is showing solidarity with its allies and contributing to European cooperation to defend the international legal order.’

Ms Yeşilgöz-Zegerius said, ‘HNLMS Evertsen has unique capabilities in the area of long-range aerial threat detection, which enable the crew to protect themselves and allies. By operating jointly with France we are also strengthening operations at European level.’

This is a defensive deployment, prompted by the recent developments in the Middle East and the Iranian attacks on surrounding countries, including several partners of the Netherlands. In this way the Netherlands is contributing to European cooperation to defend the international legal order, and is also showing solidarity with its European partners.

Part of carrier strike group

Air defence and command frigate HNLMS Evertsen has been part of the carrier strike group centred on French aircraft carrier Charles de Gaulle since 4 February. Last week, France asked the Netherlands for continued support within the carrier strike group. HNLMS Evertsen’s sensors and weapon systems are well suited to defend naval formations against the threat from drones and missiles.

Source: European Banking Authority

The European Banking Authority (EBA) has published its final Report on the draft Implementing Technical Standards (ITS) on the supervisory reporting of third country branches under the Capital Requirements Directive (CRD VI). Overall, the reporting package aims to provide supervisors with high quality information while ensuring proportionality, clarity and operational feasibility for reporting entities. 

Source: European Banking Authority

The European Banking Authority (EBA) today published its final Guidelines on instruments for the capital endowment requirement for third-country branches under the Capital Requirements Directive (CRD). The Guidelines set out the list of instruments that third-country branches may use to meet their capital endowment requirement and specify the minimum operational conditions that ensure these instruments are available when needed. The overall objective is to ensure that the capital endowment assets protect local depositors at the level of the third country branch, or they remain available to pay appropriate claims and satisfy local creditors in the event of resolution or winding-up of the third country branch.

To ensure that the capital endowment instruments are available to the third-country branch for unrestricted and immediate use to absorb risks or losses, the EBA has identified as eligible those financial instruments issued or guaranteed by central, regional, or local governments, central banks, public sector entities, multilateral development banks, or international organisations that would receive a 0% risk weight under the standardised approach for credit risk.

The Guidelines also clarify minimum operational conditions that third-country branches must meet so that the capital endowment instruments effectively serve their purpose and remain available in the event of resolution or winding-up of the third-country branch.

Legal basis and background

Article 48e(2) of Directive 2013/36/EU specifies the forms of instruments that could be used in the event of the resolution or winding up of the third-country branch, including  ‘any other instrument that is available to the third-country branch for unrestricted and immediate use to cover risks or losses as soon as those occur’. Article 48e(4) of Directive 2013/36/EU mandates the EBA to specify the requirements for such ‘other instruments’.

These final Guidelines build on the public consultation conducted in 2025, during which the EBA collected feedback on the list of eligible instruments and the related operational conditions. They contribute to the consistent implementation of the new third-country branch regime introduced by the CRD.

Source: European Banking Authority

The European Banking Authority (EBA) will start the central validation of the International Swaps and Derivatives Association Standard Initial Margin Model (ISDA SIMM) on 1 March 2026. The Decision on arrangements for ISDA SIMM validation, published today sets out the operational framework governing the EBA’s new validation function. This marks a key milestone in the implementation of the EBA’s new role as central validator of pro forma models, aimed at ensuring consistent, robust and transparent supervisory oversight of initial margin models across the EU.

Under the amended European Market Infrastructure Regulation (EMIR), the EBA is mandated to establish and operate an EU-level validation function for pro forma initial margin models used for non-centrally cleared over-the-counter derivatives.

With today’s announcement, the EBA confirms that  its central ISDA SIMM validation function is operational and ready to start as of 1 March 2026.

Coinciding with this announcement, the EBA publishes the Decision on arrangements for IMMV of ISDA SIMM, which will also enter into force on 1 March 2026. The Decision details the operational arrangements for the validation function, including onboarding and application procedures, governance and cooperation mechanisms with competent authorities and ISDA, and the criteria for ongoing monitoring and assessment of SIMM model changes.

Legal basis, background and next steps

In accordance with Article 11(12a) of EMIR, the EBA is required to set up a central validation function for the elements and general aspects of pro forma models used or to be used by financial counterparties and non-financial counterparties.

The ISDA SIMM qualifies as a pro forma model within the meaning of Article 11(12a), sixth subparagraph, of EMIR.

Pursuant to Article 89(13) of EMIR, the EBA shall publicly announce that it has set up its central validation function.

For the purpose of the Delegated Act mandated under Article 11(12a), seventh subparagraph, of EMIR, 1 March 2026 shall be the EBA readiness date.

The EBA has now obtained, through competent authorities, the list of financial and non-financial counterparties that exchange initial margin and use – directly or indirectly – ISDA SIMM pro forma model following the data collection launched on 7 November 2025.

In a first phase, those counterparties will be contacted directly by the EBA for onboarding onto the EBA ISDA SIMM validation system. The onboarding process will be conducted in stages.

In a second phase, onboarded counterparties will be invited to submit their applications for SIMM validation. This phase is expected to begin in August 2026.

The EBA expects to issue its first SIMM validation decision in Q4 2026, including the list of counterparties to which the validation decision applies. Pending the publication of the EBA’s validation decision, counterparties may continue to use initial margin models based on ISDA SIMM, provided that they have applied to their competent authorities for the authorisation of such models in accordance with EMIR and the EBA’s no-action letter published on 17 December 2024.

A dedicated section with further information on the validation process, timelines, and related arrangements will be soon made available on the EBA’s website.

Source: European Banking Authority

The European Banking Authority (EBA) today published its Opinion in response to the European Commission’s amendments to the draft Regulatory Technical Standards (RTS) specifying what constitutes an equivalent legal mechanism to ensure the completion of a residential property under construction within a reasonable timeframe, as laid down in the Capital Requirements Regulation (CRR).

On 9 January 2026, the Commission informed the EBA of its intention to endorse, with amendments, the final draft RTS submitted by the EBA on 5 August 2025.

The EBA considers that two of the Commission’s proposed amendments introduce substantive changes that are not consistent with the prudential safeguards underpinning the preferential treatment for residential property exposures.

First, the Commission proposed to increase the cap on the risk weight applicable to the protection provider from 20% to 30% under the Standardised Approach. The EBA considers that maintaining the original 20% threshold is important to preserve consistency within the overall prudential framework. As a general principle, the capital treatment of an exposure should not be more favourable than what is justified by the credit quality of the counterparty providing the protection. Allowing eligibility for protection providers attracting a 30% risk weight could, in certain cases, lead to a preferential capital treatment that is not fully aligned with this principle. In the EBA’s view, retaining the 20% cap is therefore essential both to safeguard the coherence of the capital framework and to ensure that the mechanism offers a sufficiently robust level of assurance for the effective completion of the property.

Second, the Commission proposed to remove the requirement that the completion guarantee be mandated by the law of the Member State where the residential property is being built. The EBA considers this requirement fundamental to ensuring that the mechanism qualifies as a legal mechanism, rather than a purely private contractual arrangement. Its removal could reduce legal certainty and dilute the robustness of the framework.

With this Opinion, the EBA reaffirms its commitment to safeguarding a harmonised and prudent application of the preferential treatment for residential property exposures.

Legal basis and background

This Opinion is issued under Article 10(1) of Regulation (EU) No 1093/2010, which requires the EBA to submit an opinion where the European Commission intends to endorse draft regulatory technical standards (RTS) with amendments.

The relevant provisions governing the prudential treatment of exposures secured by mortgages on immovable property under the Standardised Approach are laid down in Article 124 of Regulation (EU) No 575/2013 (Capital Requirements Regulation – CRR). That provision sets out the conditions and risk-weight parameters applicable to such exposures, including the circumstances under which exposures to residential property under construction may benefit from the preferential treatment (Article 124(3), point (a)(iii)(2)).

On 5 August 2025, the EBA submitted its final draft RTS to the Commission. On 9 January 2026, the Commission notified the EBA of its intention to endorse the RTS with amendments and shared a revised version. This Opinion constitutes the EBA’s formal response to these amendments. 

Source: European Banking Authority

The European Banking Authority (EBA) has decided to conclude its dedicated work on the monitoring of legacy instruments, in line with its long-standing expectation that such instruments should be eliminated over time. The phasing out of legacy instruments is essential to maintain a clear subordination ranking within institutions’ capital structures and to avoid unnecessary complexity in the prudential framework.

In the context of its broader monitoring of the quality of own funds and eligible liabilities, the EBA has over recent years devoted significant attention to legacy instruments, namely on own funds instruments benefiting from grandfathering provisions under the Capital Requirements Regulation (CRR1 and CRR2).

To support institutions and competent authorities in phasing out these instruments, the EBA has undertaken a series of actions. These encompassed the publication in 2020 and in 2022 of two Opinions on the prudential treatment of legacy instruments (Opinion on the prudential treatment of legacy instruments and Opinion on legacy instruments: outcome of its implementation) and the regular monitoring of the stock of such legacy instruments, including through assessments of individual cases.

Given the extensive work already carried out and with confidence that competent authorities will continue to monitor the remaining limited and specific cases on the basis of the guidance provided, the EBA will not prioritise the monitoring of legacy instruments, while maintaining its review of the quality of own funds and eligible liabilities.

Source: European Banking Authority

The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) today launched  a consultation on the revised joint Guidelines on the assessment of the suitability of members of the management body and key function holders. In parallel, the EBA is consulting on draft Regulatory Technical Standards (RTS) specifying the documentation and information that large institutions must submit to competent authorities. Together, these elements form the Suitability Package, which aims to harmonise suitability assessments and promote supervisory convergence across the EU. The consultations run until 25 May 2026.

The draft revised EBA-ESMA Joint Guidelines incorporate new requirements introduced by the revised Capital Requirements Directive (CRD) for large institutions. These updates cover, among other elements, the use of ex‑ante applications in cases where competent authorities carry out ex‑post assessments, as well as mandatory suitability assessments by competent authorities for key roles such as heads of control functions and chief financial officers. The Guidelines also further specify the new CRD requirements for third‑country branches. In addition, they reinforce the link with the anti-money laundering and countering the financing of terrorism (AML-CFT) framework by providing guidance for identifying reasonable grounds to suspect money laundering or terrorist financing (ML/TF) risks.

The EBA’s draft RTS set out the documentation and information that institutions must submit to competent authorities as part of the suitability assessment. They harmonise the minimum content of the suitability questionnaire, curriculum vitae and internal suitability assessment, ensuring that submissions are consistent, complete and comparable across the EU.

In addition, the revised package introduces targeted simplification and streamlining measures designed to reduce administrative burden and provide greater flexibility and clarity for institutions and supervisors.

Consultation process

• Stakeholders are invited to submit their comments on the revised joint EBA and ESMA Guidelines on the assessment of the suitability of members of the management body and key function holders using “send your comments” button on the consultation page. The deadline for the submitting comments is 25 May 2026. All contributions received will be published following the end of the consultation, unless requested otherwise. A public hearing on the Guidelines will take place on 15 April 2026 from 14:00 to 15:30.
• The EBA also invites stakeholders to provide comments to the draft RTS on documentation and information to be submitted to competent authorities using the “send your comments” button on the consultation page. The deadline for the submission of comments is 25 May 2026. A public hearing on the RTS will take place on 15 April 2026 from 15:30 to 16:30. All contributions received will be published following the end of the consultation, unless requested otherwise.

Legal basis and next steps

The draft joint EBA-ESMA Guidelines have been developed on the basis of Article 91 (11) and 91a(8)) of Directive 2013/36/EU (CRD) and Article 9 of Directive 2014/65/EU (MiFID II). Once the revised Guidelines enter into force, they will repeal the 2021 Guidelines.

The draft RTS have been developed on the basis of Article 91 (10) of Directive 2013/36/EU (CRD)d.

Source: Government of the Netherlands

News item | 23-02-2026 | 16:15

Tom Berendsen, Minister of Foreign Affairs

Tom Berendsen is the new Minister of Foreign Affairs. He succeeds David van Weel. Berendsen was a Member of the European Parliament from 2019, where he was head of the CDA delegation. 

Minister Berendsen: “The world around us is changing, and our freedom and prosperity are under pressure. I am optimistic that together with our European and international partners we can protect our position in the world. By looking beyond our own borders and working together with countries that share our values. And by forging new strategic partnerships. This way, we make the Netherlands and Europe stronger – for ourselves and for generations to come.”

Follow the Minister of Foreign Affairs on social media

Sjoerd Sjoerdsma, Minister of Foreign Trade and Development Cooperation

Sjoerd Sjoerdsma is Minister of Foreign Trade and Development Cooperation. He succeeds Aukje de Vries. Sjoerdsma was a member of parliament for D66 for over 11 years. Before that, he worked as a diplomat at BZ. With the new government, the title of Minister for Foreign Trade and Development has been changed to Minister of Foreign Trade and Development Cooperation.

Minister Sjoerdsma: “International cooperation is crucial for the Netherlands. Amid the global turbulence, we are therefore opting for a robust trade policy, and we will be investing in development cooperation again. We will ensure that our partners benefit, while also firmly protecting values such as democracy and human rights. This is how we will strengthen our prosperity, resilience and security.”

Follow the Minister of Foreign Trade and Development Cooperation on social media

Source: European Banking Authority

The European Banking Authority (EBA) today published the follow-up to its 2022 peer review report on ICT risk assessment under the supervisory review and evaluation process (SREP). The follow-up Report shows that competent authorities have made notable progress in strengthening ICT risk assessment, driven largely by the implementation of the Digital Operational Resilience Act. At the same time, further work and continued investment remain necessary to ensure consistent and effective ICT risk supervision across the European Union (EU).

The follow-up exercise reviewed the recommendations issued to competent authorities in 2022, including a targeted follow-up on relevant benchmarking questions. It assessed progress in light of the application of DORA since January 2025, and the forthcoming integration of the ICT SREP Guidelines into the revised SREP Guidelines – one of the key recommendations of the 2022 report. In conducting this review, the EBA primarily relied on related supervisory convergence work.

The findings confirm that competent authorities are enhancing their ICT supervisory capacity and expertise, increasingly using horizontal analyses, and systematically applying supervisory tools. In relation to benchmarks, improvement was observed in the use of the ICT risk sub-categories, which are now broadly implemented by almost all authorities.

More broadly, the Report encourages competent authorities to fully integrate ICT risk methodologies and ICT risk sub-categories into supervisory processes, along with continued efforts to enhance supervisory convergence and operational resilience across the EU.

Legal basis and background

The follow-up Peer Review has been conducted in accordance with Article 30 of the EBA Regulation (Regulation (EU) No 1093/2010), which requires a review committee to prepare a follow report two years after the publication of the initial peer review and submit it to the Board of Supervisors. The follow-up report shall include an assessment of, but not be limited to, the adequacy and effectiveness of the actions undertaken by the competent authorities that are subject to the peer review in response to the follow-up measures of the peer review report.