-
- April 15, 2026
INVESTMENT SERVICES & CAPITAL MARKET
MIFID and MIFIR
ESMA sets out actions to simplify the retail investor journey and make investing more accessible
On 12 March 2026, ESMA published its takeaways from the 2025 Call for Evidence on the retail investor journey.
Taking into account the input from stakeholders, ESMA outlines a number of actions and operational improvements it will take forward to make it easier for retail investors to access suitable investment opportunities.
ESMA will focus on three areas:
- streamlining disclosure requirements and tackling information overload for investors;
- reducing complexity in suitability and appropriateness assessments;
- simplifying MIFID II requirements on sustainability preferences.
As part of this follow up work, consumer testing will be used to inform and validate improvements to disclosures and digital investor journeys, including for mobile-first users.
Responses indicate that retail investors encounter multiple regulatory and non‑regulatory barriers when starting to invest. There is therefore not one magic solution to make the EU’s capital markets more accessible.
Stakeholders highlighted the following aspects to be addressed:
Disclosures: too long, too complex, not digital-first. Stakeholders support the need for appropriate disclosures but find them not sufficiently effective due to volume, complexity, and fragmentation of information. They call for clearer and layered information, delivered in mobile-friendly formats.
Suitability and appropriateness assessments: valuable but heavy. Stakeholders value the investor protection benefits of suitability and appropriateness requirements, but ask for simplification and proportionality, particularly for simple products and those distributed through digital channels. Many also consider the integration of sustainability preferences as being overly complex.
Beyond regulation: trust, costs, and taxes matter. Respondents also highlighted several non-regulatory obstacles to investing: lack of trust, high fees and limited comparability of products, low financial literacy and cultural factors, and complex taxation, especially for cross-border investments.
The report will guide ESMA’s future technical advice on MIFID II delegated acts and potential updates to its guidelines, ensuring alignment with the final outcome of the Retail Investment Strategy (RIS).
ESMA Q&As clarify expectations in the run-up to the launch of EU’s Consolidated Tapes
On 1 April 2026, published Questions and Answers (Q&As) on the onboarding of data contributors to the EU’s Consolidated Tapes (CTs), and on the operational rules for the Consolidated Tape Providers (CTPs). The goal is to increase certainty for all market participants in anticipation of the go-live of the EU’s CTs for bonds and for equities.
The Q&As are available via ESMA’s online Q&A tool.
In collaboration with National Competent Authorities, ESMA reminds that trading venues and Authorised Publication Arrangements have the legal obligation to contribute data to the CTPs from the CTs’ go‑live.
In this context, ESMA expects the relevant data contributors to engage with the selected CTPs ahead of their formal authorisation, to ensure that the data transmission setup is in place before the CTs’ go‑live. This cooperation may include agreeing on the relevant transmission protocols and conducting connectivity and end‑to‑end testing.
ESMA expects the selected CTPs to put appropriate arrangements in place to safeguard the confidentiality and integrity of information received during this preparatory phase.
EMIR
ESMA final reports on RTS on margin transparency and cost of clearing under EMIR
On 2 March 2026, the European Securities and Markets Authority (ESMA) published the following final reports on draft regulatory technical standards (RTS) on margin transparency requirements and information on clearing fees and associated costs under the European Market Infrastructure Regulation (EMIR).
On 24 June 2025, ESMA issued consultation papers following the review of EMIR (EMIR 3), which strengthens requirements for central counterparties (CCPs) and clearing service providers (CSPs) on margin transparency requirements and for CSPs to disclose information on clearing fees and associated costs.
The final draft RTS on margin transparency requirements as required under Article 38 EMIR, specify the information to be provided by central counterparties (CCPs) on their margin simulation tools and by clearing service providers (CSPs) on their margin simulation requirements; and by both on their margin models. The aim is to improve transparency for clearing participants and enable them to better predict margin calls. The final draft RTS contain provisions on the information to be provided by a CCP to its clearing members, the CCP initial margin simulation tool and information to be provided by clearing members and clients providing clearing services.
The final draft RTS on information on clearing fees and associated costs as required under Article 7c(4) EMIR, specify further details of the information to be disclosed by CSPs regarding clearing fees to be charged to CCPs for providing clearing services and any other fees charged, as well as any associated costs, with the aim of increasing costs transparency.
The final reports will be submitted to the European Commission. The Commission has three months to decide whether to adopt the draft RTS in the form of Commission Delegated Regulations. Following adoption, they are then subject to non-objective by the European Parliament and the Council.
EBA consults on draft guidelines and RTS on initial margin model authorisation
On 17 March 2026, the European Banking Authority (EBA) launched two consultations on draft guidelines and regulatory technical standards (RTS) on the authorisation of initial margin models under the revised European Market Infrastructure Regulation (EMIR 3).
Under EMIR 3, counterparties must obtain prior approval from their competent authority to use internal models used to calculate initial margin for non-centrally cleared derivatives. The proposals aim to create an efficient and harmonised authorisation process across the EU for assessing these models.
The draft guidelines set out the minimum information and documentation required for a complete authorisation application, building on the Annex to the EBA’s December 2024 No Action Letter, which will cease to apply once the guidelines enter into force. The EBA expects to gradually roll out the application of the guidelines over a period of 18 months, staggering the application for different groups of counterparties based on the significance of their over-the-counter (OTC) trading activities.
The draft RTS specify the supervisory assessment techniques to be applied by competent authorities when authorising initial margin models. These will apply only to counterparties within groups whose aggregate monthly average notional amount of non-centrally cleared OTC derivatives exceeds EUR750 billion. Where an internal model relies on a pro forma model, prior validation by the EBA is required before authorisation by the competent authority.
The deadline for comments on the consultations is 17 June 2026, with a public hearing scheduled for 4 May 2026.
FINANCIAL CRIME
Anti-money Laundering
AMLA launches data collection exercise to test risk assessment models
On 16 March 2026, the EU Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) published a reporting package for its data collection and testing exercise, including an interpretative note, reporting template and recording and slides from a webinar explaining the requirements and next steps.
The exercise will test and calibrate AMLA’s risk assessment models for credit and financial institutions, which serve two purposes: to inform the selection, taking place in 2027, of up to 40 entities for AMLA’s direct supervision starting in 2028, and to ensure that money laundering risks of credit and financial institutions are assessed consistently by supervisors across the EU.
All entities taking part in this exercise have already been notified by their national competent authorities.
AMLA developed the reporting package in close cooperation with national supervisors and the sampled entities. Following an initial feedback round, AMLA circulated a draft version to sampled entities via national competent authorities, allowing them to familiarise themselves with the template and begin internal data mapping. The reporting package published today incorporates input from national supervisors and the private sector and serves as the reference package for the testing exercise.
AMLA published Participating firms are required to submit data by 22 April 2026.
FUNDS
UCITS and AIFD
Delegated Regulations regarding LMTs under AIFMD and UCITS Directive published in Official Journal
On 27 February 2026, the European Commission published two Delegated Regulations in the Official Journal of the European Union: (i) Delegated Regulation (EU 2026/465), supplementing the Alternative Investment Fund Managers Directive (Directive 2011/61/EU) (AIFMD); and (ii) Delegated Regulation (EU 2026/466) supplementing the Undertakings for Collective Investment in Transferable Securities Directive (Directive 2009/65/EC) (UCITS Directive).
These Delegated Regulations lay down regulatory technical standards (RTS) specifying the characteristics of liquidity management tools (LMTs), following the recent amendments made to the AIFMD and the UCITS Directive by Directive (EU) 2024/927 (AIFMD II).
The RTS specify the characteristics of the LMTs set out in the Annexes to the Directives, including suspension of subscriptions, repurchases and redemptions, redemption gates, extension of notice periods, redemption fees, swing pricing, dual pricing, anti-dilution levy, redemption in kind and side pockets. Under the amended Directives, managers must select at least two LMTs from the harmonised list for potential use, taking into account the fund’s investment strategy, liquidity profile and redemption policy.
The Delegated Regulations were first adopted on 17 November 2025. They both enter into force on 19 March 2026, being the 20th day following publication in the Official Journal of the European Union, and will apply from 16 April 2026.
ESMA published its updated overview of cross-border distribution of investment funds
On 25 March 2026, the European Securities and Markets Authority (“ESMA”) published its updated overview of the cross-border distribution of investment funds in the European Economic Area (“EEA”).
Regulation (EU) 2019/1156 on facilitating cross-border distribution of collective investment undertakings requires ESMA to publish on its website the hyperlinks to the websites of competent authorities where they publish complete and up-to-date information on the applicable national laws, regulations and administrative provisions governing marketing requirements for AIFs and UCITS, as well as the summaries thereof, and the hyperlinks to the websites of competent authorities where they publish and maintain complete and up-to-date list of the fees and charges they levy for carrying out their duties in relation to the cross-border activities of fund managers.
This document is a helpful resource for fund managers distributing UCITS and AIFs on a cross-border basis in the EEA.
Money Market
ESMA publishes guidelines on stress test scenarios under the MMF Regulation
On 26 March 2026, ESMA published the official translations of its guidelines on stress test scenarios under the Regulation on Money Market Funds (MMF Regulation).
The guidelines apply to competent authorities, MMFs and managers of MMFs as defined in the MMF Regulation. They apply in relation to Article 28 of the MMF Regulation and establish common reference parameters for the stress test scenarios to be included in the stress tests conducted by MMFs or managers of MMFs in accordance with that Article. The guidelines apply from 26 May 2026 with respect to parts in red, and the other parts of the guidelines already apply from the dates specified in Articles 44 and 47 of the MMF Regulation.
SUSTAINABLE FINANCE
Taxonomy
European Commission issues call for technical advice to ESAs on Disclosures Delegated Act
On 4 March 2026, the European Commission issued a call for technical advice to the European Supervisory Authorities (comprising the European Banking Authority, European Insurance and Occupational Pensions Authority and European Securities and Markets Authority) (ESAs) on key performance indicators (KPIs) and other aspects of the Disclosures Delegated Act under Article 8 of Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment (Taxonomy Regulation).
The European Commission is seeking technical input to complete the review and simplification of taxonomy reporting under the Disclosures Delegated Act. The review will focus on measures that were not included in Delegated Regulation (EU) 2026/73 (Omnibus Delegated Act) and will take place alongside ongoing work to amend the Sustainable Finance Disclosure Regulation.
The European Commission requests delivery of the final advice by the ESAs by October 2026. The European Commission is aiming to adopt any amendments to the Disclosures Delegated Act in Q1 2027, with entry into force in Q3 2027. This is before the transitional relief for taxonomy reporting provided to financial undertakings in the Omnibus Delegated Act expires on 31 December 2027. The European Commission also notes that the more general review of taxonomy technical screening criteria is ongoing and is due to be finalised in Q3.
RISK MONITORING
EU financial markets enter 2026 amid high-risk environment
On 11 March 2026, ESMA published its first risk monitoring report of 2026, outlining the key risks and vulnerabilities in EU financial markets. ESMA finds that risks of market and systemic stress remain high despite resilient market performance in the second half of 2025.
ESMA’s risk assessment for the second half of 2025 has been completed well before the current shocks to the global economy from the war in the Middle East commenced in late February this year. Yet first market reactions in the EU and elsewhere to that war underline the transmission channels and sensitivities ESMA had highlighted in its risk monitoring.
The likelihood of sudden and significant market price swings continues, driven by increasing geopolitical tensions, stretched equity valuations, and an uncertain economic outlook in the EU. Rising price correlations across asset classes heighten contagion risk while cyber and hybrid threats continue to grow in scale and sophistication, increasing the risk of operational disruptions in financial markets.
Beyond the risk drivers, ESMA’s report sets out market developments and conditions across key segments of EU financial markets during the second half of 2025. It also provides deep dives on selected topics such as EU sovereign bonds’ sensitivity to unexpected events, funds’ exposure to private finance, EU listings trends, and physical risk and catastrophe bonds.
Market developments
Securities markets and crypto-assets
Record-high global equity valuations in the second half of 2025 and early 2026 increased the risk of disorderly market corrections. European sovereign bond spreads versus Germany narrowed, although liquidity weakened slightly amid macroeconomic uncertainty. At the same time, credit-quality signals in the EU remained mixed, with growing concerns especially around US private credit. The October flash crash triggered an extended sell-off in crypto markets, although stablecoins continued to grow, albeit at a slower pace.
Infrastructures and services
Financial firms and infrastructures are increasingly targeted by cyber and hybrid threats and vulnerable to operational dependencies likely to propagate shocks. CSDs experienced a surge in settlement fails for ETFs in April, and UCITS and equities in August and September.
Asset management
Equity funds saw strong performance. This was largely driven by valuations, through increased exposure to the US market. The growth of private finance funds contributes to the funding of the real economy, but requires monitoring given opacity and interconnectedness concerns.
Consumers
As investors continued shifting from active to passive strategies, ETF inflows remained high. The growing influence of social media on younger investors increases bubble risks, while leveraged products, such as turbos, often deliver negative returns for retail investors.
Structural developments
Market-based finance
Equity issuance remained weak as IPO activity continued to decline and secondary offerings provided limited support. ESMA’s analysis found no clear evidence of rising delistings in Europe, but it highlighted a persistent downward trend in IPOs.
Sustainable finance
A cooling in global climate policy sentiment weighed on ESG investing, even as ESMA’s fund naming guidelines improved portfolio transparency. Meanwhile, rising awareness of physical climate risks drove catastrophe bond issuance to record highs in 2025, with EU funds increasingly offering exposure to these instruments.
Financial innovation
Tokenisation adoption remained low but gained momentum, including with the growth of tokenised money market funds. Interest in quantum computing applications increased, although applications remain experimental and far from commercial use.
ESAs spring risk update highlights geopolitical pressures and rising private finance risks
On 27 March 2026, the European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) published their spring 2026 Joint Committee update on risks and vulnerabilities in the EU financial system. The update focuses on the challenges arising from ongoing geopolitical tensions and developments in private finance.
Geopolitical tensions continue to pose significant risks
The ESAs warn that ongoing geopolitical tensions, namely the war in the Middle East, pose significant risks to the global financial landscape through higher energy prices, potential inflationary pressures and weaker economic growth. The ESAs had previously warned about the risks of sudden repricing and liquidity reductions at times of elevated equity market valuations and compressed spreads in bond markets. Such developments can exacerbate market vulnerabilities, triggering volatility and revaluations.
Higher interest rates may further tighten funding conditions and affect asset quality. Tensions around the Strait of Hormuz and airspace closures raise multi-line risk, although war exclusions are expected to limit net losses for insurers. More broadly, geopolitical events and cyber-attacks could generate shocks and disruptions to critical infrastructures.
Risks linked to private finance
The update also highlights emerging risks in private finance driven by limited data, low transparency, prolonged growth and complex, opaque interconnections with the broader financial system. These factors increase the potential for sudden market shifts in investor liquidity and spillovers to other parts of the financial system.
Recent developments in certain US private credit funds, linked to AI replacing more traditional software businesses, illustrate potential vulnerabilities related to changes in investor sentiment.
EU financial sector remains resilient overall
Despite the challenging geopolitical environment, European financial markets have continued to demonstrate resilience. The insurance and Institutions for Occupational Retirement Provision (IORP) sectors maintain robust capital and funding positions. In the banking sector, capital ratios remain high, while liquidity positions and asset quality are solid. Direct exposures to countries most affected by the war remain limited.
Supervisors and market participants to maintain vigilance
Given the ongoing geopolitical tensions, the Joint Committee of the ESAs calls on supervisors and market participants to maintain a high level of readiness. This includes proactive risk assessments with appropriate tools, the prudent management of sovereign exposures and the inclusion of geopolitical context in risk management. Possible indirect effects stemming from energy prices and exposures to highly affected sectors should also be closely monitored.
Financial institutions, authorities and investors are also encouraged to closely monitor and manage risks associated with private markets, considering limited transparency, rising exposures, and potential shifts in risk profiles, linked to the upcoming Solvency II 2027 changes.
COMMISSION INFRINGEMENT DECISIONS
European Commission takes action to ensure complete and timely transposition of EU directives
On 27 March 2026, the European Commission announced that it was taking action against several EU member states that have failed to notify it of measures they have adopted to transpose EU directives into their national laws. In particular, it has sent letters of formal notice to:
- Belgium, Bulgaria, Cyprus, Denmark, Estonia, Greece, Spain, France, Italy, Latvia, Luxembourg, Lithuania, Malta, the Netherlands, Poland, Portugal, Romania, Slovenia and Sweden for failing to fully transpose the European Single Access Point (ESAP) Omnibus Directive (Directive 2023/2864); and
- Belgium, Bulgaria, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Cyprus, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Austria, Poland, Portugal, Romania, Slovakia, Finland and Sweden for failing to fully transpose the amending Sixth Capital Requirements Directive (Directive 2024/1619)
The member states concerned now have two months to respond, complete their transposition and notify their measures to the European Commission. In the absence of a satisfactory response, the European Commission may decide to issue a reasoned opinion.
MARKET ABUSE
SEC confirms exemption for directors and officers of EEA Foreign Private Issuers
On 5 March 2026, the United States Securities and Exchange Commission (SEC) published the decision to exempt directors and officers of European Economic Area (EEA) foreign private issuers (FPIs) from the reporting requirements under Section 16(a) of the US Securities Exchange Act of 1934.
The SEC’s decision means that directors and officers of EEA FPIs will not be required to comply with these specific US reporting obligations. The announcement ensures continued alignment with the EU regulatory framework, which already provides for substantially similar disclosure requirements for persons discharging managerial responsibilities set in the Market Abuse Regulation (MAR).
CYSEC DEVELOPMENTS
Circular C758: ESMA launches a Common Supervisory Action with NCAs on MiFID II
On 05 March 2026, CySEC issued Circular C758, to inform Cypriot Investment Firms (‘CIFs’) of the launch of ESMA’s Common Supervisory Action for 2026 (“CSA 2026”), conducted with national competent authorities (“NCAs”), concerning the conflicts of interest in the distribution of financial instruments.
The objective of the CSA 2026 is to assess how firms comply with their obligations under MiFID II to identify, prevent and manage conflicts of interest when providing investment products to retail clients.
The assessment will focus on the following areas:
- The possible impact of staff remuneration and inducements on what products are offered to investors.
- The role of digital platforms in guiding investors toward specific products and whether this is aligned with their best interests.
- The ways firms manage potential conflicts between their own profits and the needs of retail investors.
In the context of CSA 2026, CySEC plans to carry out on-site inspections and/or desk-based reviews on a sample of CIFs that fall within the scope of the exercise and provide investment services to retail clients. CySEC will therefore evaluate how these firms comply with the MiFID II conflicts of interest requirements, while also ensuring the consistent application of EU rules and enhancing investor protection in line with ESMA’s objectives, in consideration of the regulatory framework listed in paragraph 4 of the Circular.
Therefore, CySEC expects CIFs to comply with the content of the Circular, as it will form part of CySEC’s supervisory review for the purposes of the CSA 2026.
Law Providing for the Procedure for Reporting Actual or Potential Violations of Regulation (EU) No. 596/2014 to the Cyprus Securities and Exchange Commission (Law 12(Ι)/2026)
On 6 March 2026, Law 12 (I) 2026 (hereinafter ‘the Law’) was published in the Official Gazette of the Republic of Cyprus, where the Law sets out the formal procedure for reporting breaches (or suspected breaches) of Regulation (EU) No. 596/2014, which is the Market Abuse Regulation (MAR).The Law align the national framework with Article 32(1) of Regulation (EU) No. 596/2014 to ensure its effective implementation, and with Commission Implementing Directive (EU) 2015/2392 for the harmonisation of procedures concerning the reporting of actual or potential infringements to the competent authorities.
The Law highlights the following:
- Establishes how individuals or entities can report violations.
- Defines the channels and mechanisms for submitting reports to CySEC, including specialized contact points and dedicated communication channels.
- Ensures protections for whistleblowers, guaranteeing confidentiality, safeguards, and measures to protect employees from retaliation.
- Outlines the process followed by CySEC in handling and investigating reports, including the reception, monitoring and investigation of reported violations.
- Specifies procedures for record-keeping related to reports of violations, ensuring proper documentation and traceability.
- Includes procedures for the protection of personal data, ensuring compliance with data privacy requirements when processing reports.
- Details the rules for transferring data within and outside the competent authority while maintaining confidentiality.
- Provides for the review and updating of internal procedures by CySEC to ensure efficiency and compliance.
- Sets out the criminal and civil liability for breaches, along with the associated consequences, including fines and imprisonment.
- Confers authority on CySEC to issue guidance and instructions to ensure the effective implementation of the law.
The Law ensures compliance with EU obligations on detecting and preventing market abuse in financial markets and entered into force upon its publication in the Official Gazette of the Republic.
CySEC Consultation Paper CP-03-2026 on amendments to CySEC Directive on the prevention and suppression of money laundering and terrorist financing (Register of beneficial owners of express trusts and similar legal arrangements)
On 6 March 2026, the Cyprus Securities and Exchange Commission issued Consultation Paper CP-03-2026 proposing amendments to its Directive on the Register of Beneficial Owners of Express Trusts and Similar Legal Arrangements.
The proposed changes aim to align the Directive with recent amendments to the Prevention and Suppression of Money Laundering Law (L.188(I)/2007) and ensure compliance with Directive (EU) 2024/1640, particularly following relevant case law of the Court of Justice of the European Union.
Key proposed amendments include:
- Removal of provisions linked to Article 61C(12)(d) of the AML Law, in line with forthcoming legislative changes.
- Restriction of public access to beneficial ownership information in trust registers. Access will only be granted to persons demonstrating a legitimate interest, reflecting EU legal developments.
- Technical amendments to specific paragraphs of the Directive (e.g. definitions, access provisions, and deletion of certain sections) to ensure consistency with the updated legal framework.
The consultation applies to trustees, settlors, protectors, and beneficial owners of trusts and similar legal arrangements. Stakeholders were invited to submit comments by 24 March 2026.
Circular C759: ESMA Guidelines on Outsourcing to Cloud Services Providers
On 13 March 2026, CySEC issued Circular C759, to inform affected persons that it has adopted the Guidelines issued by the European Securities and Markets Authority (“ESMA”) on outsourcing to Cloud Service Providers (the “Guidelines”). This Circular replaces Circular 457, which was issued on 9 July 2021 on the same subject.
The Guidelines now focus exclusively on certain depositaries that are not subject to the DORA Regulation. This revision does not introduce any amendments to the text or the requirements of the Guidelines but solely restricts their scope of application to ensure that they remain relevant. They are addressed both to competent authorities and to supervised entities, which are referred to in the Circular as affected persons.
They consist of nine (9) in total and apply from the date of their publication on ESMA’s website in all official languages of the European Union.
Circular C760: ESMA Guidelines on stress test scenarios under the money market funds (MMF) Regulation
On 13 March 2026, CySEC issued Circular C760, to remind the Regulated Entities, that the European Securities and Markets Authority (‘ESMA’) issued on February 24, 2025 an updated version of its Guidelines on stress test scenarios under the MMF Regulation (‘the Guidelines’), in the official translations in all EU official languages. Furthermore, this Circular replaces the previous Circular (C637) on the same topic, issued on April 22, 2024.
The Guidelines apply to: (i) national competent authorities, (ii) money market funds and (iii) managers of money market funds as defined in the MMF Regulation. Also, they apply in relation to Article 28 of the MMF Regulation and establish common reference parameters for the stress test scenarios to be included in the stress tests conducted by MMFs or managers of MMFs in accordance with that article.
The Guidelines apply since two months after the date of their publication on ESMA’s website in all EU official languages. With respect to the parts in the Guidelines shown in red – the other parts of the Guidelines already apply from the dates specified in Articles 44 and 47 of the MMF Regulation.
Circular C762: FATF Report: Targeted Report on Stablecoins and Unhosted Wallets
On 18 March 2026, CySEC issued Circular C762, to inform Regulated Entities regarding the FATF’s publication of the FATF Report: Targeted Report on Stablecoins and Unhosted Wallets (the ‘Report’) on 3 March 2026.
The Report identifies and analyses the illicit finance risks linked to criminals’ misuse of stablecoins, particularly through peer-to-peer (P2P) transactions via unhosted wallets. It also sets out recommended actions for countries and the private sector aimed at enchasing existing controls to safeguard the integrity of the financial system.
CySEC urges Regulated Entities to duly take into account the Report and to consider the specific money laundering and terrorist financing risks that may arise from such arrangements. Regulated Entities are expected to enhance their understanding of the risks associated with stablecoins and unhosted wallets transfers and to enhance their risk-based approach under the Prevention and Suppression of Money Laundering Activities Law (L.188(I) 2007), as amended.
Amendment Law to the Prevention and Suppression of Money Laundering Laws (2007–(No. 2) of 2025)
On 20 March 2026, Law 25 (I) 2026 (hereinafter ‘the Law’) was published in the Official Gazette of the Republic of Cyprus and amends the Prevention and Combating of Money Laundering Laws of 2007 up to No.2. of 2025. The Law aligns with Article 74 of the Directive (EU) 2024/1640, on the mechanisms that Member States must establish to prevent the use of the financial system for the purposes of money laundering or terrorist financing, amending Directive (EU) 2019/1937, and amending and repealing Directive (EU) 2015/849. The Law introduces amendments to the existing framework.
In relation to Article 61A & Article 61B, paragraph (a) of subsection (6), subparagraph (iii) is replaced with the following subparagraph“(iii) A natural person or association of persons, with or without legal personality, who demonstrates that they have a legitimate interest in accessing information regarding beneficial owners for the purpose of preventing and combating money laundering and terrorist financing.’’ Provided that:
- The information accessible is limited to the name, month and year of birth, country of residence, nationality of the beneficial owner and the type and extent of the rights held; and
- The processing of such information is subject to the provisions of Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data.
Moreover, in relation to Article 61C, the subsection (12) is amended as follows:
- In paragraph (c), immediately after “demonstrates legitimate interest,” the phrase “for accessing information on the beneficial owner” is added and paragraph (d) is deleted.
The Law entered into force upon its publication in the Official Gazette of the Republic. The law is published in Greek, and any English translation is unofficial.
Circular C764: Suspension of redemption of UCITS and AIF units on 3 and 6 April 2026
On 27 March 2026, CySEC issued Circular C764, to inform Regulated Entities that the redemption of UCITS and AIF units is suspended on 3 and 6 April 2026. It is provided that the suspension refers to UCITS and AIFs that hold assets in transferable securities listed in regulated markets and whose net asset value is calculated on a daily basis.
CySEC reached the above decision after taking into consideration the below:
- Article 20(1) of the Open-ended Undertakings for Collective Investment Law (the “UCI Law”),
- Article 43(3) of the Alternative Investment Funds Law (the “AIF Law”),
- The fact that 3 and 6 April 2026 are public holidays due to the Catholic Easter in most international stock markets,
- The fact that the settlement system for payments TARGET2 is closed on those days, and
- The need to safeguard the interests of unit-holders of UCITS and AIFs and the proper functioning of the market.
It is noted that the obligations under article 20(2) of the UCI Law and article 43 of the AIF Law continue to apply.