November 2025 Regulatory Updates

What Changed

• - Indefinite exemption for equity options: Single-stock equity options and index options are permanently exempted from UK bilateral initial margin (IM) and variation margin (VM) requirements,...
• Legacy contracts relief: Firms falling below the Average Aggregate Notional Amount (AANA) threshold no longer need to exchange IM on outstanding legacy non-centrally cleared derivatives contracts.
• Third-country alignment: UK firms can adopt another jurisdiction’s threshold calculation periods and entry-into-scope dates for IM requirements when trading with counterparties subject to that...
• Minor drafting tweaks for consistency between PRA and FCA instruments, including FCA adding text on releasing collected IM, with no policy impact.

Suggested Considerations

• Review and update internal policies, procedures, and systems to cease IM/VM exchange for exempted single-stock equity options and index options post-27 November 2025; confirm no ongoing obligations for legacy contracts if below AANA thresholds.
• Assess cross-border transactions: Document use of third-country jurisdictions’ timelines for IM thresholds where applicable, ensuring compliance with UK rules remains intact.
• Conduct gap analysis on margin calculations, collateral management, and reporting; train front-to-back office teams on changes.
• Retain records of AANA calculations and threshold monitoring to justify exemptions or relief.
• For firms with collected IM on now-exempt legacy positions, evaluate release options per updated FCA instrument language.

References

• [1] regulationtomorrow.com/eu/pra-fca-ps23-25-margin-requirem...
• [2] bankofengland.co.uk/prudential-regulation/publication/202...
• [3] fca.org.uk/publications/policy-statements/ps25-16-margin-...
• [4] thecompliancedigest.com/uk-pra-and-fca-policy-statement-o...
• [5] jdsupra.com/legalnews/uk-regulators-finalize-amendments-t...
• [6] bis.org/press/p251212.htm
• [7] simmons-simmons.com/en/publications/cmin0jdjm00euujfo19kk...

What Changed

• This is not a formal rule change but supervisory guidance via roundtable insights reinforcing SS1/23 principles (effective since 2023). Key emphases include:
• Risk appetite: Boards must articulate AI/ML-specific model risk appetite pre-deployment to avoid exceeding tolerances, given higher uncertainty from opacity.
• Model inventories and tiering: Address inaccurate/incomplete inventories and aggregate risks from deploying similar AI/ML across portfolios/jurisdictions; challenge tiering for complexity.
• Model development: Assess trade-offs in performance vs. explainability/reliability; prefer simpler models where AI/ML gains are marginal; mitigate overfitting via representative datasets.
• Ongoing monitoring: Increase frequency beyond tier-dependent intervals (e.g., six months may suffice for traditional models but not dynamic AI/ML); define quantitative triggers for re-validation.

Suggested Considerations

• Review and strengthen board-level model risk appetite statements to explicitly cover AI/ML opacity and uncertainty; integrate into governance triggers like re-validation.
• Enhance model inventories for completeness, aggregate risk assessment, and cross-jurisdictional tiering challenges.
• Update model development policies to evaluate AI/ML trade-offs (e.g., explainability vs. performance) and ensure datasets prevent overfitting.
• Revise ongoing monitoring policies for more frequent, quantitative checks on AI/ML (e.g., beyond six months); define degradation triggers, fallback models, and kill switches.
• Participate in PRA initiatives like MRM roundtables or AI Consortium for dialogue; align first/second-line defenses per SS1/23.

Key Dates

References

• [1] bankofengland.co.uk/-/media/boe/files/prudential-regulati...
• [2] bankofengland.co.uk/prudential-regulation/publication/202...
• [3] validmind.com/blog/e-23-roundtable-key-takeaways/
• [4] articsledge.com/post/model-risk-management
• [5] finextra.com/blogposting/30372/the-pras-latest-view-on-ai...
• [6] marcusevans.com/conferences/model-risk/sponsor/agenda
• [7] cdao-fall.coriniumintelligence.com/hubfs/CDAO%20Fall%2020...
• [8] garp.org/risk-insights-resources

What Changed

• This is an enforcement action, not a rulemaking, so there are no new regulatory changes or requirements. It reinforces longstanding CEA and CFTC rules on:
• Mandatory registration as a Commodity Pool Operator (CPO) and Associated Persons (APs) for pools trading commodity futures (CFTC Regulation 4.13 exemptions do not apply here due to fraud and public...
• Prohibitions on fraud, misrepresentations, guarantees of profit, non-disclosure of risks, commingling funds, and operating pools as non-separate entities (CEA Section 4o, Regulations 4.20, 4.21).
• Compliance with prior CFTC orders barring trading or registration-required activities.

Suggested Considerations

• Verify registration: Check CFTC/NFA BASIC database before engaging with pools or advisors; unregistered status warrants avoidance.
• Implement controls: Segregate pool funds (Regulation 4.20), avoid commingling, disclose risks fully, prohibit profit guarantees/misrepresentations, and issue accurate statements.
• Conduct due diligence: Screen principals for prior CFTC orders; cease activities if barred.
• Train staff: On fraud red flags (e.g., Ponzi payments, high-yield promises) and report suspicions via CFTC hotline (866-FON-CFTC) or online tip form.
• For SEC-registered advisers: Evaluate eligibility for CFTC Letter 25-50 relief to avoid dual registration while ensuring pools limit to qualified eligible persons (QEPs).

Key Dates

References

• [1] cftc.gov/PressRoom/PressReleases/9140-25
• [2] cftc.gov/PressRoom/PressReleases/9168-26
• [3] sidley.com/en/insights/newsupdates/2025/12/us-commodity-f...
• [4] ropesgray.com/en/insights/alerts/2025/12/cftc-provides-in...
• [5] cftc.gov/PressRoom/PressReleases/9160-25
• [6] haynesboone.com/news/alerts/cftc-no-action-letter-provide...
• [7] cftc.gov/LawRegulation/EnforcementActions/index.htm
• [8] alston.com/en/insights/publications/2025/12/cftc-registra...

What Changed

• - New fee structures: Introduction of a periodic fee block for PISCES operators based on regulated income (baseline £2,200 annual fee, variable above £500,000 threshold); extension of fee-block A.13...
• Levy adjustments: Addition of targeted support to FSCS Class 2, Category 2.1 (life distribution/investment intermediation) for both FOS and FSCS levies based on annual eligible income; withdrawal of...
• PRA-FCA joint proposals (Chapter 4): Amended invoice due dates for firms paying £50,000+ in annual FCA/PRA fees ("payments on account") to prevent overdue labels from procedural mismatches.
• Other updates: Removal of £3 agent registration fee for payment institutions, RAISPs, and EMIs; policy tweaks like expanding skilled person reviews for motor finance to more lenders, pro-rating for...

Suggested Considerations

• Review current fee/levy exposure and model impacts of new blocks (e.g., PISCES, targeted support, DPC) and withdrawn FOS changes.
• Assess invoice processes if paying £50,000+ in FCA/PRA fees; prepare for aligned due dates.
• Submit consultation responses by deadlines, focusing on targeted support by 9 January 2026.
• Budget for potential fee increases; monitor Spring 2026 fee-rates CP.
• For applicants: Factor in new Category 4 fees for A.13 or crypto/DPC registrations.

Key Dates

References

• [1] fca.org.uk/publications/consultation-papers/cp25-33-regul...
• [2] jdsupra.com/legalnews/uk-fca-consults-on-regulatory-fees-...
• [3] regulationtomorrow.com/eu/fca-consults-on-regulatory-fees...
• [4] bankofengland.co.uk/prudential-regulation/publication/202...
• [5] finreg.aoshearman.com/uk-fca-consults-on-regulatory-fees-...
• [6] policymogul.com/consultations/13000/cp23-25-regulatory-fe...
• [7] lexisnexis.co.uk/legal/news/fca-pra-consult-on-2026-27-re...
• [8] bankofengland.co.uk/prudential-regulation/publication/ope...

What Changed

This is an enforcement action, not a rulemaking, so there are no new regulatory changes or requirements. It reaffirms existing CEA prohibitions on fraud, including Section 6(c)(1), 7 U.S.C. § 9(1), and 17 C.F.R. § 180.1(a)(1)-(3), covering material misrepresentations, omissions, and deceptive schemes in precious metals sales.

Suggested Considerations

• Conduct immediate fraud risk assessments on precious metals sales scripts, disclosures, and pricing markups to ensure no material misrepresentations or undisclosed overcharges.
• Enhance senior investor protections, including suitability reviews, cooling-off periods, and training on vulnerable customer targeting bans.
• Review controlling person policies for good faith oversight, documenting supervisory failures to avoid personal liability.
• Audit parallel SEC/CFTC exposures in commodity-linked activities, preparing for offset calculations in multi-agency actions.
• Update compliance manuals with this case as precedent for CEA fraud in physical commodities; monitor whistleblower notices for internal reporting incentives.

Key Dates

References

• [1] cftc.gov/PressRoom/PressReleases/9139-25
• [2] cftc.gov/media/12781/enfSafeguardMetalsLLCDecision093025/...
• [3] whistleblower.gov/notices/2025-015
• [4] oag.maryland.gov/News/Pages/Office-of-Maryland-Attorney-G...
• [5] nasaa.org/77724/states-cftc-final-judgment-precious-metal...
• [6] cftc.gov/media/12776/enfSafeguardMetalsLLCJudgementOrder0...
• [7] securities.utah.gov/2025/10/17/utah-division-of-securitie...
• [8] finance.idaho.gov/department-of-finance-cftc-and-29-state...

What Changed

• - Increased Protection Limits: Standard FSCS deposit limit rises from £85,000 to £120,000; THB limit from £1 million to £1.4 million, applying to failures from 1 December 2025.
• SCV System Updates: Firms must update SCV systems (used by FSCS for rapid compensation) to reflect new limits from 1 December 2025, including accurate contact details.
• Disclosure Materials: - Update information sheets on FSCS cover to reflect new limits and improve clarity/accessibility; provide to depositors as soon as practicable post-1 December 2025, by 31...
• Rulebook Amendments (DPP Rules): Exclude FSCS sticker/poster display in branches without in-person depositor dealings; tighten "third-party premises" scope (e.g., banking hubs); other clarifications.
• Supervisory Updates: SS18/15 and SoP1/15 amended for new rules, effective 1 December 2025, with guidance on third-party premises.

Suggested Considerations

• Immediate (pre-1 Dec 2025): Test and prepare SCV systems for new limits; review current contact data accuracy.
• By 1 Dec 2025: Implement SCV updates; apply amended SS18/15 and SoP1/15.
• Post-1 Dec 2025 to 31 May 2026: Revise and distribute updated information sheets, compensation stickers/posters (excluding non-in-person branches), and simplified exclusions lists; no proactive customer notification required but provide on request/in relevant circumstances.
• Ongoing: Ensure disclosures remain clear/accessible; monitor for PRA feedback on banking hub models.
• Document changes for audit trails; consider regtech for SCV automation.

Key Dates

References

• [1] connections.nortonrosefulbright.com/post/102lw49/pra-fina...
• [2] bankofengland.co.uk/prudential-regulation/publication/202...
• [3] regulationtomorrow.com/eu/pra-publishes-final-rules-in-re...
• [4] jdsupra.com/legalnews/uk-pra-increases-depositor-protecti...
• [5] prarulebook.co.uk/legal-instruments?rule=29388b3a62324812...
• [6] lexisnexis.co.uk/legal/news/pra-publishes-policy-statemen...
• [7] macroglobal.co.uk/blog/regulatory-technology/fscs-deposit...

What Changed

The PRA is considering policy reforms centered on six core principles: Capital Quality & Quantity: Alternative life capital structures must not lower the quality or quantity of capital required to support insurance risks. Risk Transfer Focus: Structures should enable patient capital investment aligned with long-term liability profiles, allowing investors to forgo immediate returns for substantial future gains. Capital Relief Priority: Alternative life capital should predominantly deliver capital relief proportionate to actual risk transfer—not balance sheet financing or illiquidity...

Suggested Considerations

• *For UK life insurers:
• *Assess capital needs: Evaluate whether alternative capital structures could address your firm's capital constraints, risk management objectives, or product innovation goals.
• *Prepare consultation response: Submit detailed feedback to the PRA by 6 February 2026 addressing the 15 consultation questions, particularly:
• Q12: Key risks from increased capital flexibility and mitigation approaches
• Q13: Views on balancing ease of authorisation against ongoing supervision intensity

Key Dates

References

• [1] bankofengland.co.uk/prudential-regulation/publication/202...
• [2] skadden.com/insights/publications/2025/12/the-pras-discus...
• [3] mayerbrown.com/en/insights/publications/2026/01/alternati...
• [4] skadden.com/insights/publications/2026/01/uk-prudential-r...
• [5] bankofengland.co.uk/prudential-regulation/regulatory-dige...
• [6] slaughterandmay.com/insights/financial-regulation-weekly-...
• [7] hoganlovells.com/en/publications/uk-insurance-horizon-sca...
• [8] regulationtomorrow.com/eu/funded-reinsurance-latest-uk-re...

What Changed

• This announcement itself introduces no new regulatory changes or requirements; it is a personnel update. However, it occurs amid broader Enforcement Division restructuring, including:
• Consolidation from one Deputy Director to four (three regional: Northeast, Southeast, West; one for specialized units), reducing reporting lines for a more unified nationwide enforcement program.
• Rescission in March 2025 of delegated authority for the Enforcement Director to issue formal orders of investigation, now requiring direct Commission authorization to align with priorities.
• Emphasis on transparency, such as sharing legal theories and evidence with defense counsel during Wells processes, rewarding cooperation, self-reporting, and remediation, while avoiding novel legal...

Suggested Considerations

• Review ongoing Northeast Regional Office investigations for potential leadership changes and engage early with new deputies on cooperation opportunities.
• Enhance internal self-reporting and remediation protocols to align with Enforcement's stated rewards for cooperation and robust Wells processes.
• Update compliance training on restructured reporting lines and Commission-authorized formal orders, ensuring defenses stick to established securities laws rather than novel theories.
• Monitor SEC staff directory for replacement announcements, such as potential roles for Samuel Waldon or others in the Northeast.

Key Dates

References

• [1] mcguirewoods.com/client-resources/alerts/2025/6/a-new-day...
• [2] sec.gov/newsroom/press-releases/2025-146-deputy-director-...
• [3] dechert.com/knowledge/onpoint/2025/6/under-new-leadership...
• [4] corpgov.law.harvard.edu/2026/01/21/sec-enforcement-2025-y...
• [5] skadden.com/insights/publications/2025/04/trump-administr...
• [6] perkinscoie.com/insights/update/sec-speaks-2025-four-key-...
• [7] morganlewis.com/pubs/2025/12/securities-enforcement-round...
• [8] clearygottlieb.com/news-and-insights/publication-listing/...

What Changed

• - Risk Adjustment Updates (Annex 2): Increases weight of 'Return on assets' (ROA) risk indicator from 7.5% to 10%; decreases 'Deposit-size Risk' from 15% to 12.5%; adjusts sliding scale bounds for...
• Formula Component Floor (Annex 1): Introduces a zero floor for Component 1 (max(0, A_{j,k})), preventing negative values from offsetting Component 2; retains both components but ensures no...
• Contribution Calculation Refinements: Annual contributions per compartment use updated formulas (e.g., formula (1) with max operator); contribution rates are uniform per compartment but...
• Repeals Prior Circulars: Repeals CSSF-CPDI 23/34 (4 June 2020) and CSSF-CPDI 20/21 (as amended), replacing the 2020-reviewed method.

Suggested Considerations

• Review and update internal systems/models for contribution calculations to incorporate new risk weights, bounds (Table 2), zero floor for Component 1, and revised formulas in Annexes 1-2.
• Validate data reporting for risk indicators (e.g., ROA, LCR, NSFR, NPL) against adjusted sliding scales; ensure alignment with EBA Guidelines for simplicity and resource efficiency.
• Prepare for FGDL invoices reflecting compartment-specific rates; monitor covered deposits for surveys (e.g., per Circular 25/49).
• Conduct gap analysis against repealed circulars (20/21, 23/34); update policies for mergers, deposit changes, and gap fillings (Γ_λ).

References

• [1] cssf.lu/wp-content/uploads/CSSF_CPDI_2548eng.pdf
• [2] cssf.lu/en/Document/circular-cssf-cpdi-25-48/
• [3] cssf.lu/en/regulatory-framework/
• [4] cssf.lu/wp-content/uploads/newsletter298.pdf
• [5] cliffordchance.com/content/dam/cliffordchance/PDFDocument...
• [6] cssf.lu/en/protection-of-depositors-and-investors/
• [7] cssf.lu/en/news/
• [8] cssf.lu/wp-content/uploads/newsletter297.pdf

What Changed

• - Modified Contribution Formula: Replaces prior methods (e.g., from Circulars CSSF-CPDI 16/01, 17/06, 20/21) with a new structure: Component 1 proportional to covered deposits growth (Γ_{j,k}) at...
• Risk Adjustment Introduction: ARW is calculated using a weighted score (minimum 75% on EBA core categories, plus 12.5% deposit-size risk and 10% others) from indicators like leverage ratio (bounds...
• Merger/Transfer Handling: For failed/merged institutions, contributions are redistributed proportionally to receiving institutions' deposit increases, capped by their own required amounts; no...
• Floor and Alignment: Introduces max(0, A_{j,k}) floor to avoid negative components; ensures EBA compliance, simplicity, and risk sensitivity.

Suggested Considerations

• Data Reporting: Submit accurate covered deposits data (e.g., as of 31 Dec 2025 per Circular 25/49) and risk indicator metrics (leverage, LCR, NSFR, NPL, etc.) to FGDL/CSSF for ARW calculation; prepare for annual surveys like CPDI 25/45 (31 Mar 2025 snapshot).
• Internal Calculations: Model contributions using new formula C_{j,k} = ARW_{j,k} * max(0, max(A_{j,k}) + T_j D_{j-2,k}) * μ; forecast based on historical deposits (D_{j-2,k}) and growth.
• Risk Monitoring: Track and improve key metrics (e.g., reduce NPLs below 3%, maintain LCR/NSFR >100%) to minimize ARW >1; review merger impacts.
• Payment: Pay FGDL invoices reflecting uniform rates per compartment, risk-adjusted amounts.
• Systems Update: Adapt finance/compliance systems for new inputs; align with EBA risk guidelines (https://www.eba.europa.eu/regulation-and-policy/single-rulebook/interactive-single-rulebook/1085).

Key Dates

References

• [1] cssf.lu/wp-content/uploads/CSSF_CPDI_2548eng.pdf
• [2] cssf.lu/wp-content/uploads/CSSF_CPDI_2548eng_tc.pdf
• [3] cssf.lu/wp-content/uploads/CSSF_CPDI_2548.pdf
• [4] cssf.lu/en/Document/circular-cssf-cpdi-25-48/
• [5] cssf.lu/en/Document/circular-cssf-cpdi-25-48-track-changes/
• [6] fgdl.lu/en/473/
• [7] cssf.lu/en/protection-of-depositors-and-investors/
• [8] cssf.lu/en/regulatory-framework/

What Changed

• This is an enforcement action, not a regulatory change, but it clarifies and strengthens application of existing AMF rules for conseillers en investissements financiers (CIFs) under French...
• Mandatory compliant documentation (e.g., investment proposals).
• Obligation to act honestly, fairly, and professionally in clients' best interests, including systems to prevent managers exploiting positions for undocumented investments.
• AML/CFT compliance, including prohibitions on directors receiving client funds in personal accounts.
• Annual training for directors and diligent cooperation with AMF inspections.

Suggested Considerations

• Audit documentation: Ensure all investment advice is fully documented and compliant; implement traceability for proposals.
• Strengthen governance: Deploy systems to detect/prevent conflicts, especially manager-led undocumented investments; enforce annual director training.
• Enhance AML/CFT: Prohibit personal receipt of client funds; conduct KYC and transaction monitoring.
• Improve inspection readiness: Train staff for diligent, honest cooperation with AMF; maintain secure archives.
• Senior manager reviews: Assess personal compliance liabilities; update senior managers regime policies.

Key Dates

References

• [1] amf-france.org/en/news-publications/news-releases/enforce...
• [2] amf-france.org/en/news-publications/news-releases/enforce...
• [3] steel-eye.com/news/carat-gp-amf-fine-cif-unidentified-pla...
• [4] amf-france.org/en/news-publications/news-releases/enforce...
• [5] amf-france.org/en/news-publications/news-releases/enforce...
• [6] amf-france.org/en/news-publications/news-releases/enforce...
• [7] amf-france.org/en/forms-and-declarations/listed-companies...
• [8] amf-france.org/sites/institutionnel/files/pdf/77659/en/Th...

What Changed

• - Retail deposits threshold raised from £50 billion to £75 billion, adjusted upward from the CP2/25 proposal of £70 billion to account for further GDP growth to Q2 2025 (rounded to nearest £5...
• Introduction of a three-year moving average for calculating retail deposits metric, replacing point-in-time values to mitigate volatility and aid capital planning, particularly for building societies.
• Non-UK assets threshold remains unchanged at £10 billion.
• Modifications by consent disapplying leverage ratio rules during review will cease on 30 June 2026. These changes are implemented via updates to the Leverage Ratio – Capital Requirements and Buffers...

Suggested Considerations

• Review and update internal retail deposits calculations to incorporate three-year moving average methodology starting 1 January 2026.
• Assess current and projected retail deposits against £75 billion threshold (and £10 billion non-UK assets) to determine leverage ratio applicability and adjust capital planning accordingly.
• Prepare to meet 3.25% leverage ratio minimum plus buffers if thresholds breached, including systems updates for averaging and reporting.
• For firms with modifications by consent: Plan transition back to full leverage ratio rules by 30 June 2026, including any necessary capital raises or disclosures.
• Update governance, risk models, and board reporting to reflect changes; conduct gap analysis against PRA Rulebook appendices in PS22/25.

Key Dates

References

• [1] regulationtomorrow.com/eu/pra-ps22-25-leverage-ratio-chan...
• [2] bankofengland.co.uk/prudential-regulation/publication/202...
• [3] bankofengland.co.uk/prudential-regulation/regulatory-dige...
• [4] addleshawgoddard.com/en/insights/insights-briefings/2025/...
• [5] jdsupra.com/legalnews/uk-pra-finalises-policy-on-increasi...
• [6] lexisnexis.co.uk/legal/news/pra-publishes-policy-statemen...
• [7] jdsupra.com/topics/policy-updates/threshold-requirements/
• [8] innovatefinance.com/policy-blogs/pra-consultation-cp2-25-...

What Changed

The proposed regulatory regime introduces several material requirements for systemic stablecoin issuers: Backing Asset Composition Systemic stablecoin issuers will be permitted to hold up to 60% of backing assets in short-term sterling-denominated UK government debt, with the remaining 40% held as deposits at the Bank of England.

Suggested Considerations

• *For Systemic Stablecoin Issuers:
• *Monitor and respond to consultation - Submit detailed comments on proposals before February 2026 deadline, particularly on:
• Alternative tools to achieve regulatory objectives
• Backing asset composition and holding limits
• Safeguarding regime design

Key Dates

References

• [1] skadden.com/insights/publications/2025/11/bank-of-england...
• [2] mayerbrown.com/en/insights/publications/2025/12/proposed-...
• [3] addleshawgoddard.com/en/insights/insights-briefings/2025/...
• [4] bankofengland.co.uk/paper/2025/cp/proposed-regulatory-reg...
• [5] bankofengland.co.uk/news/2025/november/boe-launches-consu...
• [6] reedsmith.com/articles/bank-england-consultation-paper-pr...
• [7] whitecase.com/insight-alert/bank-england-consults-regulat...
• [8] mofo.com/resources/insights/251203-uk-proposes-regulating...

What Changed

This is an enforcement action, not new legislation, but it reinforces existing CJA 2010 requirements for VASPs: ongoing transaction monitoring, immediate STR filing to the Financial Intelligence Unit (FIU) and Revenue Commissioners upon suspicion of money laundering or terrorist financing, and adoption of internal policies/controls to prevent/detect financial crime.

Suggested Considerations

• Conduct Gap Analysis: Review transaction monitoring systems for configuration errors, back-testing historical data, and ensuring 100% coverage of high-risk transactions.
• Enhance Controls: Implement robust internal policies, automated alerts, and governance to detect/prevent ML/TF; test systems regularly for faults affecting >1% of volume.
• Accelerate STR Processes: Ensure real-time suspicion flagging and filing; remediate delays via prioritized back-monitoring with FIU coordination.
• Board/Compliance Reporting: Document remediation plans, as Coinbase did, and prepare for audits/enforcement; train staff on VASP-specific risks under MiCA/AMLA.
• Third-Party Review: Engage independent auditors to validate fixes, mirroring Coinbase's post-error cooperation.

Key Dates

References

• [1] wp.nyu.edu/compliance_enforcement/2025/11/24/central-bank...
• [2] centralbank.ie/news/article/press-release-enforcement-act...
• [3] flagright.com/post/coinbases-record-eu21-5-m-fine-in-irel...
• [4] centralbank.ie/docs/default-source/news-and-media/legal-n...
• [5] centralbank.ie/news-media/legal-notices/enforcement-actions
• [6] pinsentmasons.com/out-law/news/central-bank-ireland-fines...
• [7] vinciworks.com/blog/coinbase-fined-e21-4m-for-transaction...
• [8] coinbase.com/blog/resolving-past-transaction-monitoring-e...

What Changed

• - Introduces new modules in the revised SAQ to align with supervisory points of focus, building on prior expansions (e.g., credit/counterparty risk, liquidity risk, climate-related risks from CSSF...
• Emphasizes REA's independent assessment in the AML/CFT report, requiring exhaustive, transparent evaluations of ML/FT risks across institutions, branches, majority-owned subsidiaries abroad, and tied...
• REA must verify and amend descriptive elements provided by management for the Financial Instruments and Funds Report and AML/CFT report, including quantitative metrics like pending file ratios.
• Confirms the three-part LFR framework: institution-completed SAQ, REA's client assets protection report (per Article 7 of Grand-ducal Regulation of 30 May 2018), and REA's AML/CFT report; no Agreed...
• Enhances REA responsibilities for collateral arrangements and client fund protections under relevant laws.

Suggested Considerations

• Complete and submit revised SAQ annually, incorporating new modules on supervisory focuses like ML/FT risks and providing detailed data to REA.
• Authorized management: Supply accurate descriptive information to REA for reports, covering client protections, collateral, and AML/CFT procedures across group entities.
• REA: Independently assess and report on ML/FT risks and client assets with transparency, quantitative details, and verified management inputs; avoid imprecise language.
• Ensure AML/CFT report details methodologies (e.g., sampling techniques) and covers branches/subsidiaries/tied agents.
• Review prior LFR submissions against this update to align with suppressed redundancies and new emphases.

Key Dates

References

• [1] cssf.lu/wp-content/uploads/cssf25_897eng.pdf
• [2] dlapiper.com/en/insights/publications/2024/01/new-cssf-ci...
• [3] cssf.lu/en/Document/circular-cssf-25-897/
• [4] ogier.com/news-and-insights/insights/luxembourg-cssf-circ...
• [5] cssf.lu/en/Document/faq-on-the-revised-long-form-report-f...
• [6] stradalex.lu/en/slu_src_publ_leg_cssf/document/cssf-2025-...
• [7] cssf.lu/en/Document/agreed-upon-procedures-to-be-performe...
• [8] cssf.lu/en/prudential-reporting-credit-institutions/

What Changed

• The circular introduces a three-component reporting framework that fundamentally alters the compliance landscape:
• Self-Assessment Questionnaire (SAQ): A digital, annually-completed questionnaire that institutions must prepare directly, covering domains within CSSF and ECB prudential supervision competence
• Agreed Upon Procedures (AUP) Reports: Reports prepared by approved statutory auditors (réviseurs d'entreprises agréés) on specific compliance areas
• Separate REA Report on Financial Instruments Protection: A dedicated auditor assessment on safeguarding of client financial instruments Scope of SAQ Coverage: The questionnaire addresses prudential...

Suggested Considerations

• *For Credit Institutions:
• *Establish SAQ Governance: Designate authorized management responsible for reviewing and electronically signing the SAQ before submission; ensure accuracy and true-and-fair representation of information
• *Data Preparation: Align SAQ responses with prudential reporting figures (FINREP/COREP/LAREX) under IFRS as of financial year closure
• *Digital System Access: Obtain access credentials to the CSSF digital solution and familiarize compliance teams with the platform interface and submission workflow
• *Module Completion: Complete all applicable SAQ modules as configured in the CSSF digital solution; note that module applicability and exemptions are institution-specific and recorded directly in the system

Key Dates

References

• [1] cssf.lu/wp-content/uploads/cssf22_821eng.pdf
• [2] pwc.lu/en/regulatory-compliance/banking-and-psf/cssf-circ...
• [3] cssf.lu/en/Document/circular-cssf-22-821/
• [4] cssf.lu/wp-content/uploads/ABBL-CSSF_LFR_webinar_101122.pdf
• [5] cssf.lu/en/2022/10/publication-of-circular-cssf-22-821-on...
• [6] dlapiper.com/en/insights/publications/2024/01/new-cssf-ci...
• [7] stradalex.lu/en/slu_src_publ_leg_cssf/document/cssf-2022-...
• [8] cssf.lu/en/Document/self-assessment-questionnaire-to-be-s...

What Changed

• - CSSF 21/765: Updated provisions following amendments to CSSF Regulation No 12-02, refining notification and operational requirements for branches and FOPS.
• CSSF 22/827: Further amendments to align with CRD and MiFID II changes, including enhanced notifications for programme alterations (e.g., one-month prior written notice for changes in operations,...
• CSSF 25/898: Latest update (noted in CSSF Newsletter No 298, November 2025), incorporating recent legal/regulatory developments, such as refined reporting via eDesk portal, AML/CFT compliance...

Suggested Considerations

• Notifications: Submit initial branch/FOPS notification to home authority (including operational programme); notify changes (e.g., services, locations) at least one month in advance to both home authority and CSSF.
• Reporting: Complete and sign SAQ (accurate, concise, true/fair view) via eDesk within six months post-year-end; provide REA-appraised AML/CFT and conduct reports, detailing branch procedures/controls.
• Supervision cooperation: Facilitate home/CSSF on-site inspections (with professional secrecy guarantees); ensure branch compliance with Luxembourg laws (e.g., LFS Article 46(2)).
• Ongoing: Maintain branch infrastructure, update for legal changes, and align with CSSF user guides for eDesk authentication.

Key Dates

References

• [1] bakermckenzie.com/en/insight/publications/2026/01/luxembo...
• [2] cssf.lu/wp-content/uploads/cssf07_325eng.pdf
• [3] cssf.lu/wp-content/uploads/newsletter300.pdf
• [4] cssf.lu/en/Document/circular-cssf-07-325/
• [5] cssf.lu/wp-content/uploads/newsletter298.pdf
• [6] cms.law/en/lux/publication/from-2025-to-2026-key-takeaway...
• [7] loyensloeff.com/insights/news--events/news/luxembourg-reg...
• [8] caceis.com/regwatch/december-2022/