Radar archive — August 2026
AIFMD II liquidity-risk framework takes effect for Cyprus managers
CySEC issued Circular C793 on the revised liquidity risk management framework introduced by the amending Directive (EU) 2024/927, setting out the enhanced obligations now applying to Cyprus managers of open-ended funds. It complements the tool-selection requirements by strengthening ongoing liquidity-risk governance.
Implications for capital — Cyprus fund managers now operate under the EU's upgraded liquidity-risk standard, aligning Cypriot vehicles with the wider AIFMD II regime.
MiCA ends the optional crypto-advice regime for French advisors
The AMF updated its doctrine to reflect that, under MiCA, giving personalised recommendations on crypto-assets now requires authorisation as a crypto-asset service provider (CASP), superseding the optional DASP approval that financial investment advisors previously relied on. Its 2022 guidance on the point is now obsolete.
Implications for capital — Advisors offering crypto-asset recommendations must hold CASP authorisation, narrowing who may advise on or structure crypto allocations in France.
Luxembourg imposes prior notification on banks' material operations
Implementing the Law of 5 May 2026 (transposing EU Directive 2024/1619, CRD VI), the CSSF launched guidance requiring credit institutions and financial holding companies to notify material operations in advance, covering acquisitions and disposals of material holdings, material transfers of assets and liabilities, and mergers and divisions. Operations likely to have a significant prudential impact, or to raise money-laundering or terrorist-financing concerns, additionally require CSSF assessment.
Implications for capital — Structural reorganisations, carve-outs and M&A within Luxembourg banking groups now carry a supervisory pre-clearance step, affecting the timing and feasibility of moving assets and liabilities between regulated entities.
Source: Commission de Surveillance du Secteur Financier (CSSF)
FCA finalises a slimmed-down UK transaction reporting regime
In PS26/15 the FCA confirmed final rules cutting the transaction reporting fields from 65 to 52, removing foreign-exchange derivatives from scope (affecting over 400 firms) and dropping reporting for around 7 million instruments tradeable only on EU venues. The historic error-correction period shortens from five years to three. The regime is projected to cut annual industry costs from about £493m to £385m and takes effect 3 April 2028, with early adoption permitted.
Implications for capital — The reporting perimeter for UK-executing firms narrows and diverges further from EU MiFIR, altering the compliance surface for cross-border trading desks and the instruments that generate a UK reporting obligation.
Source: Financial Conduct Authority