As 2026 begins, our Regulatory team has mapped the key legal and regulatory developments affecting managers of investment funds (including private equity, private credit, hedge and other alternative funds), insurers and other financial institutions operating in the UK, U.S. and EU. We have distilled the main dates into an easy-to-read timeline with brief commentary on
FinReg Monthly Update
Welcome to the FinReg Monthly Update, a regular bulletin highlighting the latest developments in UK, EU and U.S. financial services regulation.
Key developments in December 2025:
Asset Management / Wealth Management
18 December – AIFMD 2.0 Liquidity Management Tools: European Securities and Markets Authority (“ESMA”) published an amended version of its guidelines on
Cryptoassets Regulation in the UK Draft Legislation Published
On 15 December 2025, HM Treasury took a significant step towards establishing a UK regulatory regime for cryptoassets by laying the draft ‘Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2005’ (the “Draft Order”) before Parliament.
The Draft Order aims to set the statutory foundation for a new UK cryptoasset regulatory regime
CSRD Agreed: A Major Recalibration of the EU Sustainability Reporting Regime
On 16 December 2025, the European Parliament adopted a significantly streamlined version of the Corporate Sustainability Reporting Directive (“CSRD”). This represents a very significant recalibration of the EU’s sustainability reporting regime.
CSRD’s evolution
The CSRD represents the EU’s flagship framework for mandatory sustainability reporting. Originally designed to apply to a broad range of EU and
Edging Closer to CSRD Clarity on Scope
On 9 December 2025, negotiators from the European Parliament (EP), the Council of the European Union (the Council) and the European Commission reached a provisional political agreement on the final text of their “Omnibus” package amending the Corporate Sustainability Reporting Directive (CSRD).
Though the final text is not yet published, the publicly-available press-releases confirm a
FCA Consults on Client Categorisation and Conflicts of Interest Regimes
Background
On 8 December 2025, the United Kingdom’s Financial Conduct Authority (“FCA”) published a consultation paper (CP25/36) on amending its rules on client categorisation and conflicts of interest (the “Consultation Paper”).
The Consultation Paper is seeking to reset how firms distinguish between retail and professional clients, as the rules currently stem
FinReg Monthly Update
Welcome to the FinReg Monthly Update, a regular bulletin highlighting the latest developments in UK, EU and U.S. financial services regulation.
Key developments in November 2025:
Asset Management / Wealth Management
17 November – Liquidity Management RTS: The European Commission has adopted Delegated Regulations containing regulatory technical standards (RTS) on liquidity management tools under the Alternative
SFDR 2.0 Officially Launched by European Commission
On 20 November 2025, the European Commission officially launched their legislative proposal (“Proposal”) for the updates to the Sustainable Finance Disclosure Regulation (“SFDR”). In a significant departure from the current SFDR disclosure regime, the European Commission proposes a categorisation regime for funds in its place.
The timing remains uncertain but we
Opportunity to shape the EU Taxonomy in European Commission’s Call for Evidence
On 7 November 2025, the European Commission published a call for evidence on proposals to amend the European Union’s Taxonomy legislation. In particular, the call is in relation to two delegated regulations amending the Taxonomy Climate Delegated Act ((EU) 2021/2139, the “Taxonomy Climate Delegated Act”) and the Taxonomy Environmental Delegated Act ((EU) 2023/2486
Tougher CSRD Position Endorsed by European Parliament – What Happens Next
On 13 November 2025, the European Parliament (“Parliament”) adopted its negotiating position on the review of the Corporate Sustainability Reporting Directive (“CSRD”), as part of the European Union’s (“EU”) broader simplification agenda for companies in the so-called “Omnibus”. The Parliament’s position raises the company-size thresholds for entities in scope