Tax & Finance

#ECOT2531461PReport to the President of the Republic on Ordinance No. 2026-255 Relating to the Transposition of EU Directive 2024/1619

🇫🇷France··Other·High Impact·View source ↗

AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.

🇬🇧 English

This ordinance implements measures to transpose EU Directive 2024/1619, which modifies existing regulations relating to banking capital requirements and supervision. It establishes stricter governance and supervision standards for banks, particularly focusing on environmental, social, and governance (ESG) risks. The ordinance modifies French monetary and financial laws to align with the directive's requirements, enhancing oversight capabilities of financial regulators.

AI-generated summary. May contain errors. Refer to official sources for legal decisions.

Key Changes

  • Strengthened governance and supervision for banks
  • Incorporation of ESG risks into internal governance
  • Enhanced oversight powers for the financial regulator

Obligations

What this law requires

high

Banks must integrate environmental, social, and governance (ESG) risks into their risk management frameworks and internal control procedures

Credit institutions, investment firms (Class 1 and 1bis), financing companies, financial holding companies
operational
high

Banks must prepare and submit prudential transition plans to supervisory authorities demonstrating their management of environmental and social risks

Credit institutions, investment firms (Class 1 and 1bis), financing companies
reporting
high

Third-country banking enterprises must establish at minimum a branch in the European Union to provide banking services within the EU

Third-country credit institutions and financing companies providing services in France/EU
operational
high

Supervisory authorities must obtain approval before key personnel appointments in banks are made and must have enhanced powers to control significant operations including major shareholdings and mergers

Autorité de contrôle prudentiel et de résolution (ACPR) and competent supervisory authorities
operational
high

Branches of third-country banking enterprises operating in the Union must comply with the prudential regime including authorization, governance, and capital requirements established by CRD VI

Third-country credit institutions operating through EU branches
operational

Affected Parties

Banks and financial institutionsRegulatory authorities

Tags

banking,regulation,ESG