11 May 2026
Schoenherr publication
czech republic
to the point: financial regulation | 4/2026
Welcome to our to the point newsletter. Every month, we look back at the most relevant developments in financial regulation in the CEE region.
In this edition, you will get a mix of updates:
- ESMA has launched a call for evidence on restricted subscription and private credit ratings, with responses due by 31 May 2026. ESMA is seeking evidence on the market practices, needs and risks associated with rating products that are not disseminated publicly in the same way as traditional public ratings, particularly in private market segments. The paper is addressed to financial market participants, and in particular credit rating agencies, issuers, investors and competent authorities involved in the issuance or use of credit ratings for regulatory purposes. Private credit, securitisation and structured finance market participants should be aware of the initiative, as it may lead to regulatory clarification or adjustment around information asymmetry, onward disclosure, governance, methodology and conflicts-of-interest safeguards.
- ESMA published several MiFIR Q&As on 1 April 2026 relating to consolidated tape providers (CTPs), including a clarification that the Article 22a MiFIR opt-in regime applies only to the CTP for shares and ETFs and not to bonds or OTC derivatives (ESMA Q&A 2825). ESMA also addressed when data contributors are required to submit regulatory data for individual financial instruments to the CTP, as well as how the CTP should handle and publish that information (ESMA Q&A 2823). These Q&As are operationally relevant for trading venues, APAs, systematic internalisers and investment firms preparing for the consolidated-tape architecture under the MiFIR review. Firms should ensure that CTP-related data governance, outsourcing arrangements and instrument-status processes are consistent with ESMA's evolving Q&A position.
- The European Commission has launched a public consultation on a draft delegated act amending the market risk framework for banks, i.e. the Fundamental Review of the Trading Book (FRTB), which is due to apply from 1 January 2027 under the Capital Requirements Regulation (CRR). The proposed amendments are intended to offset the negative capital impact of the FRTB for a period of three years and to support a more level playing field for EU banks active in trading activities. For institutions with material trading books, the draft delegated act therefore has implications for capital planning, the implementation of market risk models and the assessment of business-line profitability. The Commission expects formal adoption at the end of the four-week consultation period, on 19 May 2026, leaving banks with only a short window to assess whether the targeted amendments address their anticipated FRTB capital impact.
- EBA has opened consultations on revised Implementing Technical Standards for supervisory reporting and supervisory benchmarking, as part of a wider simplification package aimed at delivering a more streamlined and proportionate reporting framework for institutions. The package is expected to reduce the number of data points in EU harmonised reporting by around 50 %, while also reflecting new or updated requirements relating to IFRS 18, ESG and FRTB. The main consultation deadline is 10 July 2026, while comments on IFRS 18-related FINREP changes are due by 10 May 2026, and the revised framework is expected to apply from September 2027. In practice, banks should not treat the proposal as a simple burden-reduction exercise: reporting teams will need to map deleted, amended and newly introduced templates, assess data lineage and decide whether planned changes to the reporting system should be paused, accelerated or redesigned around the forthcoming framework.
- EBA has launched a consultation on revised guidelines on limits on exposures to shadow banking entities carrying out banking activities outside a regulated framework under the CRR. The revised guidelines align the existing framework with the updated large-exposure reporting rules, move the basis for limits from eligible capital to Tier 1 capital and remove the 0.25 % materiality threshold, while preserving the principal and fallback approaches for setting exposure limits. The consultation closes on 9 July 2026, and EBA will also use the feedback to inform broader policy work on institutions' exposures to shadow banking entities, including an assessment due by December 2027. Banks should review whether their counterparty identification, internal-limit setting and concentration-risk monitoring remain aligned with the updated CRR definition of shadow banking entities and the proposed Tier 1 capital basis.
- EIOPA has issued technical guidance explaining how to identify insurers and groups that qualify as Small and Non-Complex Undertakings under the revised Solvency II and how to calculate the relevant risk indicators. In practice, the new rules require obligated insurers and groups to check whether they meet specific quantitative and qualitative thresholds over two consecutive years based on defined reporting data; those that qualify may then apply a simplified regulatory regime. This reduces the intensity of requirements, especially in governance and risk calculations, so that obligations are better matched to the size, nature and complexity of their risks. At the same time, firms must ensure accurate classification and consistent reporting, while supervisors benefit from clearer criteria and harmonised methodologies to apply the framework across countries, enabling them to focus stricter oversight on larger, more complex and higher-risk entities.
- AMLA has launched two public consultations on draft instruments that set out how obliged entities should identify, assess and manage money laundering and terrorist financing risks. The draft RTS under arts 16 (4) and 17 (3) of the AML Regulation set minimum standards for group-wide AML/CFT frameworks, including cross-border situations and cases where obliged entities operate in third countries (AMLA group-wide consultation paper). The draft guidelines under art 10 (4) of the AML Regulation set minimum expectations for business-wide risk assessments across financial and non-financial obliged entities, with proportionality based on size, business model and risk profile (AMLA BWRA consultation). Financial groups should use the consultation period to compare existing group policies, branch and subsidiary controls, escalation lines and third-country arrangements against the emerging AMLA standards.
- The Czech Government has prepared a Draft Government Decree amending Government Decree No. 243/2013 Coll., on the investment of investment funds and on techniques for their management, aligning Czech investment fund rules with EU law, specifically implementing Directive (EU) 2024/2994 and simplifying existing requirements. For obligated entities such as investment funds and their managers, the new rules require the application of updated EU-defined limits and controls to manage concentration risk and counterparty default risk when using centrally cleared derivatives. At the same time, the government decree removes unnecessary national restrictions, clarifies what qualifies as an investment security, and streamlines investment rules, thereby reducing compliance complexity. A significant practical change is that certain specialised funds will now be permitted to invest in crypto-assets, but only within strict limits aligned with those for commodity investments, allowing managers to diversify while still adhering to risk caps.
- The National Bank of Hungary (NBoH), has issued Recommendation 4/2026 (III.25.) on procedures and policies for crypto-asset transfer services. The recommendation is addressed to crypto-asset service providers providing crypto-asset transfer services and ensures compliance with the ESMA Guidelines on procedures and policies relating to crypto-asset transfer services under art 82 (2) of Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 (MiCA). The NBoH expects providers to maintain clear policies on pre-contractual information, transfer initiation and approval, refusal and revocation, supported DLT networks, execution times, irreversibility warnings, fee breakdowns, post-execution information and liability for unauthorised or irregular transfers. The NBoH expects affected entities to apply the recommendation from 1 October 2026, so Hungarian crypto-asset service providers should use the intervening period to update customer-facing documentation, operating procedures and transfer-monitoring controls.
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Kristýna
Tupá
Counsel
czech republic