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Financial Services Regulation and Compliance - Banking and Payments July 2026

Financial Regulation Advisory

Financial Services Regulation and Compliance - Banking and Payments July 2026

In July, the CBI published its Payments and E-Money Newsletter. The revised Distance Marketing Directive and CRD VI were transposed into Irish law. There were updates relating to CRD VI and Deposit Guarantee Schemes technical standards and guidelines.

Thu 06 Aug 2026

5 min read

Domestic

European Union (Distance Contracts for Financial Services) Regulations 2026

On 3 July, notice of the European Union (Distance Contracts for Financial Services) Regulations 2026 (DMD2 Regulations) was published in Iris Oifigiúil. The DMD2 Regulations transpose the revised Distance Marketing Directive (Directive (EU) 2023/2673) (DMD2) into Irish law via amendments to the Consumer Rights Act 2022. The DMD2 Regulations also amend other legislative acts to enact consequential amendments and revoke the European Communities (Distance Marketing of Consumer Financial Services) Regulations 2004.

CRD VI transposed into Irish law

On 14 July, notice of the European Union (Capital Requirements) (Amendment) Regulations 2026 (2026 CRD Regulations) was published in Iris Oifigiúil. The 2026 CRD Regulations transpose Directive (EU) 2024/1619 into Irish law via amendments to the European Union (Capital Requirements) Regulations 2014.

CBI Payments and E-Money Newsletter

On 21 July, the Central Bank of Ireland (CBI) published the second issue of its Payments and E-Money Newsletter, covering relevant updates since the start of January 2026. The newsletter discusses an EBA Q&A on the definition of e-money, expectations regarding material changes to a firm’s business model and consumer protection and anti-money laundering matters.

European

CRD VI: Final guidelines on the authorisation of third country branches

On 7 July, the European Banking Authority (EBA) published a final report on guidelines on the authorisation of third country branches under Article 48c(8) of the Capital Requirements Directive. The guidelines prescribe the information to be provided in an application for authorisation, the assessment process, the assessment criteria and the application forms and templates. The guidelines will apply from 11 January 2027.

ECB letter to banking CEOs on AI-enabled cyber risks

On 7 July, the European Central Bank (ECB) published a letter from the Chair of the Supervisory Board of the ECB to CEOs of significant institutions calling on the institutions to:

Assessment to be conducted on crypto asset service providers’ digital operational resilience

On 8 July, the European Securities and Markets Authority (ESMA) announced that it will conduct a common supervisory action (CSA) on the digital operational resilience of crypto asset service providers (CASPs), with a specific emphasis on custody services.

The CSA will focus on risks inherent to distributed ledger technology, including:

National competent authorities will carry out the CSA on a risk-based sample of CASPs. The exercise will run from H2 2026 to H1 2027. The findings will be consolidated into a final report, which will be submitted to ESMA’s Board of Supervisors following the conclusion of the exercise in H2 2027.

Digital euro: ECON Committee’s negotiating positions adopted by European Parliament

On 9 July, the European Parliament adopted the negotiating positions recommended by the Committee on Economic and Monetary Affairs on the three legislative proposals relating to the digital euro. This step clears the way for the European Parliament to begin negotiations with the Council of the EU.

CRD VI: Final draft RTS and ITS on corporate transactions requiring notification/approval

On 17 July, the EBA published a final report on draft regulatory technical standards (RTS) and draft implementing technical standards (ITS) concerning material acquisitions, material transfers of assets or liabilities, and mergers and divisions involving credit institutions or (mixed) financial holding companies. The RTS and ITS are mandated under Articles 27b(7), 27c and 27k of the Capital Requirements Directive and cover, for example, notification and information requirements and processes, assessment methodology and supervisory consultation processes. They will be subject to scrutiny by the European Parliament and the Council of the EU, before publication in the Official Journal of the EU.

Commission Communication on EU Banking Competitiveness

On 17 July, the European Commission published a ‘Communication on the Competitiveness of the Banking Sector and the Single Market in Banking’. The Communication, which forms part of the Commission's broader competitiveness agenda, sets out measures to amend the banking regulatory framework to address challenges posed by a fragmented market and complex regulatory framework. The aim is to build a stronger and more integrated and efficient single market for banking. The Commission intends to publish the package of measures in Q1 2027.

EBA consults on technical standards and guidelines under the revised Deposit Guarantee Schemes Directive

The EBA has launched four consultations on draft RTS, ITS and guidelines under the revised Deposit Guarantee Schemes Directive to further improve depositor protection. The consultations cover depositor information, data sharing, client fund protection and payouts, and investments by Deposit Guarantee Schemes. The consultation period will end on 23 October 2026. 

CRD VI: Commission Implementing Regulation on third-country branches reporting published in the OJ

On 27 July, ITS on reporting by third-country branches under Article 21c of the Capital Requirements Directive were published in the Official Journal of the EU via Commission Implementing Regulation (EU) 2026/1757. The ITS set out the formats, definitions and reporting frequency that third-country branches will need to follow to comply with the regulatory and financial reporting requirements in Article 48k of the Capital Requirements Directive. The ITS will apply from 28 March 2027.

Date published: 6 August 2026

This publication provides an overview of certain legal and regulatory developments that may be of interest to certain entities. It does not purport to provide analysis of law or legal advice and is strictly for information purposes only.