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:
18 December – AIFMD 2.0 Liquidity Management Tools: European Securities and Markets Authority (“ESMA”) published an amended version of its guidelines on
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
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
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
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
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:
17 November – Liquidity Management RTS: The European Commission has adopted Delegated Regulations containing regulatory technical standards (RTS) on liquidity management tools under the Alternative
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
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
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
On 6 November 2025, the long-awaited “SFDR 2.0” has finally surfaced in a leak and, as many in the market expected, it represents a major reset of Europe Union’s (“EU”) sustainable finance framework. The proposal, still in draft form from the European Commission, aims to simplify the original Sustainable Finance Disclosure Regulation (“SFDR”). Yet for