Regulatory Simplification 2026: What Financial Institutions Should Expect

Throughout 2025, the European Commission intensified its efforts to simplify regulatory obligations and reduce unnecessary administrative burdens across the financial sector. These initiatives aim to improve competitiveness and operational efficiency while maintaining strong supervisory outcomes.

With several simplification measures expected to take effect from early 2026, financial institutions will need to reassess their internal controls, reporting frameworks, and compliance processes.

Key Areas of Simplification

• Reporting Obligations – Greater alignment and consolidation of templates across prudential, supervisory, and sustainability-related frameworks, reducing duplicated submissions.

• Securitization Transparency – More proportionate disclosure expectations for simple structures and revised information flows for investors.

• Supervisory Coordination – Enhanced cooperation between ESAs to limit inconsistent requests and improve predictability for supervised entities.

Opportunities and Considerations

While administrative burdens may ease, institutions must remain vigilant to ensure their interpretations remain aligned with supervisory expectations. Simplification does not reduce accountability; prudential, operational, and conduct-related risks remain central to supervisory priorities.

How can Osmia Consulting help you ?

Osmia Consulting helps institutions redesign their compliance and reporting frameworks to benefit from regulatory simplification, combining efficiency with robust controls to ensure traceability and consistency. We assist clients by mapping revised obligations, adapting internal processes, strengthening governance and documentation, and ensuring alignment with supervisory expectations.

Please feel free to contact us for a comprehensive compliance assessment.