August 2026 Regulatory Updates

What Changed

• - Large associations, associations recognised as being of public utility and foundations are now subject to the accounting regime applicable to “medium‑sized undertakings” under the amended...
• Annual accounts for affected entities must include a non‑abridged balance sheet, a profit and loss account (at least in abridged format), and notes to the accounts containing disclosures required by...
• Affected entities must use statutory LRCS layouts for the balance sheet and profit and loss account and file their annual accounts in classic format with the Luxembourg Trade and Companies Register...
• Large associations, public‑utility associations and foundations remain exempt from the mandatory use of the Standard Chart of Accounts (Plan Comptable Normalisé – PCN) and from eCDF standard data...
• Affected entities may voluntarily adopt the PCN; if they do not adopt PCN, they must maintain an internal chart of accounts and ensure robust, documented mapping between internal accounts and...

Suggested Considerations

• Identify all Luxembourg associations, public‑utility associations and foundations within or related to the group that are impacted by the Law of 7 August 2023 and confirm their size classification (small, medium‑sized, large) and whether they fall under the “medium‑sized undertakings” regime.
• Review existing accounting policies, charts of accounts and annual accounts formats for affected entities to ensure alignment with LRCS statutory layouts, including non‑abridged balance sheet, appropriate profit and loss format, and required notes disclosures.
• Decide at governing‑body level whether each affected entity will voluntarily adopt the PCN or maintain an internal chart of accounts, documenting the rationale, governance approvals and compliance impacts of the chosen option.
• Where PCN is not adopted, design, implement and document a robust mapping from the internal chart of accounts to the statutory LRCS balance sheet and profit and loss layouts, ensuring audit‑ready documentation and traceability.
• Update accounting systems and reporting tools for affected entities to support LRCS statutory layouts, consistent layout adaptations, and classic‑format filing with the RCS, including necessary changes to interfaces and data capture.

Key Dates

References

• [1] cnc.lu/en/publication-of-qa-cnc-26-038/
• [2] linkedin.com/posts/stephane-schirrecker-6b52912_new-qa-cn...
• [3] cssf.lu/en/2026/06/cssf-communique-concerning-certain-cnc...
• [4] cssf.lu/en/
• [5] cnc.lu/en/publication-of-non-financial-information-and-di...
• [6] cssf.lu/wp-content/uploads/cssf18_698eng.pdf
• [7] cssf.lu/en/regulatory-framework-for-investment-fund-manag...
• [8] cssf.lu/en/2023/06/publication-of-qas-by-the-commission-d...

What Changed

• - Large not‑for‑profit associations, associations recognised as being of public utility and foundations are required to prepare annual accounting documents consisting at a minimum of annual accounts...
• These entities fall within the regime applicable to “medium‑sized undertakings”, which drives the required content and level of detail of their annual accounts (balance sheet, profit and loss account...
• The law and the CNC Q&A confirm that large associations, public‑utility associations and foundations are not legally required to use the Standard chart of accounts (Plan comptable normalisé, PCN) or...
• Although exempt from mandatory PCN use and eCDF standard data collection, these entities must still file their annual accounts with the Luxembourg Trade and Companies Register (RCS) using statutory...
• Large associations, public‑utility associations and foundations are exempt from the obligation to file the PCN trial balance (balance générale) via the eCDF platform, even though they may still...

Suggested Considerations

• Identify whether the organisation qualifies as a large association, an association recognised as being of public utility or a foundation under the Law of 7 August 2023, and document the classification decision with reference to Articles 18, 36 and 52 of that law.
• Update internal accounting policies to require annual accounts to be prepared in accordance with the regime for undertakings referred to in Article 47 LRCS, including minimum content (balance sheet, profit and loss account and notes) and disclosure requirements.
• Decide formally whether to adopt the PCN on a voluntary basis or to maintain an internal chart of accounts, and record this decision in accounting governance documents approved by the board or governing body.
• Where PCN is not adopted, design and implement a detailed and documented mapping from internal general ledger accounts to LRCS statutory balance sheet and profit and loss layouts to ensure accurate preparation and filing of annual accounts.
• Review and, where necessary, redesign annual accounts templates to comply with LRCS layouts while making only permitted adaptations (for example, titles and subtotals) that maintain clarity, comparability and consistency over time.

Key Dates

References

• [1] cnc.lu/en/publications/doctrine/qa-cnc-26-038-large-assoc...
• [2] cnc.lu/en/publication-of-qa-cnc-26-038/
• [3] cnc.lu/publications/doctrine/qa-cnc-26-038-grandes-associ...
• [4] cnc.lu/publication-du-qa-cnc-26-038/
• [5] cssf.lu/en/
• [6] linkedin.com/posts/stephane-schirrecker-6b52912_new-qa-cn...
• [7] cssf.lu/en/2026/06/cssf-communique-concerning-certain-cnc...
• [8] cssf.lu/en/publication-data/

What Changed

• - Counterparties whose average aggregate notional amount (AANA) of non-centrally cleared OTC derivatives falls below the EUR 8 billion threshold will no longer be required to exchange initial margin...
• The current framework, under which below-threshold counterparties are exempt from initial margin for new trades but must continue to exchange initial margin for pre-existing “legacy” contracts, will...
• Article 28(1) of Delegated Regulation (EU) 2016/2251 will be amended to explicitly extend the exemption from initial margin requirements to outstanding contracts where one of the two counterparties...
• The RTS introduce a clearer operational framework for entry into and exit from the initial margin regime based on the annual AANA calculation for March–May, including scenarios where one or both...
• Once a counterparty falls below the EUR 8 billion threshold under the revised rules, firms will be permitted to terminate related initial margin processes, including ceasing ongoing calculation,...

Suggested Considerations

• Map all EMIR in-scope entities within the group and identify those whose AANA of non-centrally cleared OTC derivatives is close to or below the EUR 8 billion threshold, to assess which relationships may benefit from the expanded exemption.
• Review current collateral and margin frameworks to identify legacy contracts where initial margin is still being exchanged solely because the regime requires continuation despite the counterparty having fallen below the EUR 8 billion threshold.
• Prepare an internal policy update so that, once the RTS enter into force, initial margin requirements are switched off for counterparties below the EUR 8 billion threshold on both new and existing uncleared OTC derivatives, subject to group risk appetite.
• Update EMIR margin procedures and AANA calculation processes to ensure accurate annual determination of whether each counterparty is above or below the EUR 8 billion threshold, including documentation of the March–May calculation methodology.
• Review and amend collateral agreements, credit support annexes (CSAs) and associated legal documentation to incorporate the revised treatment for below-threshold counterparties, including terms for stopping margin exchange and potentially releasing segregated collateral.

Key Dates

References

• [1] esma.europa.eu/press-news/esma-news/joint-rts-amendments-...
• [2] esma.europa.eu/sites/default/files/library/esas_2019_20_-...
• [3] esma.europa.eu/document/emir-rts-various-amendments-bilat...
• [4] esma.europa.eu/sites/default/files/2026-08/ESA_2026_07_Fi...
• [5] esma.europa.eu/press-news/consultations
• [6] ashurst.com/en/insights/financial-services-speedread-4-au...
• [7] esma.europa.eu/press-news/esma-news/esas-publish-joint-qa...
• [8] sip.lex.pl/komentarze-i-publikacje/poradniki/sprawozdanie...

What Changed

• - The EDMC now has a new Chair (Nicholas Segal) and Deputy Chair (Peter King), replacing Sir William Blair and Philip Marsden whose terms ended in July 2026.
• The appointments are the outcome of an external recruitment process commenced in October 2025, aligned with the EDMC’s governance framework and five‑year renewable term structure.
• The scope of the EDMC’s remit continues to cover contested enforcement decisions across the Bank’s statutory regimes: Prudential Regulation, Financial Market Infrastructures, Resolution,...
• The EDMC Procedures, published in January 2024, remain the operative framework for how contested enforcement cases are handled, including panel constitution, hearing processes, and decision‑making...
• The EDMC continues to operate with functional separation from investigation teams and the Bank’s executive, preserving independence in contested enforcement decisions.

Suggested Considerations

• Map all existing and potential enforcement exposures to the EDMC’s statutory remit, covering prudential regulation, FMI, resolution, securitisation, wholesale cash distribution, critical third parties and notes issuance.
• Review internal enforcement‑response playbooks to ensure they explicitly recognise the EDMC’s independent role and the January 2024 EDMC Procedures, including how contested cases will be heard and decided.
• Update board and senior management briefings on BoE/PRA enforcement to reflect the change in EDMC leadership and likely implications for contested case strategy and settlement versus contest decisions.
• Assess ongoing and anticipated enforcement matters for which the firm might contemplate contesting; incorporate the EDMC’s composition and procedures into litigation and regulatory strategy planning.
• Train Legal, Compliance and relevant business teams on the practical implications of the EDMC Procedures (panel size, hearing processes, written and oral representations, decision timelines) with scenario‑based exercises for contested cases.

Key Dates

References

• [1] bankofengland.co.uk/prudential-regulation/publication/202...
• [2] finreg.aoshearman.com/Bank-of-England-Establishes-Enforce...
• [3] 3vb.com/sir-william-blair-appointed-chair-of-bank-of-engl...
• [4] bankofengland.co.uk/about/people/court-of-directors/gover...
• [5] mondovisione.com/media-and-resources/news/bank-of-england...
• [6] elischolar.library.yale.edu/cgi/viewcontent.cgi?article=1...
• [7] talents.studysmarter.co.uk/companies/the-bank-of-england/...
• [8] treasury.govt.nz/sites/default/files/2018-04/rbnz-rev-ban...