Here’s a summary of the provided EU legislation:
Commission Delegated Regulation (EU) 2025/843
This regulation amends the rules on persistent organic pollutants (POPs) by adding UV-328 to the list of prohibited substances in Annex I of Regulation (EU) 2019/1021. It prohibits the production, placing on the market, and use of UV-328, but includes some exemptions with specific expiration dates for articles like land-based motor vehicles, industrial coatings, and aircraft parts. It also sets concentration limits for UV-328 as an unintentional trace contaminant that will become stricter over time, and articles already in use before the exemption expires can continue to be used.
Commission Delegated Regulation (EU) 2025/1399
This regulation modifies Annex I of Regulation (EU) 2019/1021, targeting perfluorooctanoic acid (PFOA), its salts, and PFOA-related compounds. It adjusts exemptions and limits for these substances, particularly in fire-fighting foams. The most notable changes include extending the exemption for the use of PFOA-containing fire-fighting foam in already installed systems until December 3, 2025, and increasing the temporary UTC limits for PFOA and related compounds in installed foams (1 mg/kg for PFOA or its salts and 10 mg/kg for PFOA-related compounds) until August 3, 2028. The regulation defines “firefighting foam” and allows continued use of articles already in use under previous exemptions.
Commission Implementing Regulation (EU) 2025/1345
This regulation corrects errors in the Estonian and Swedish language versions of Annex I to Regulation (EU) No 1178/2011, which deals with civil aviation aircrew licensing. It addresses inaccuracies regarding recency requirements for LAPL(H) holders and training requirements for PPL(A) and PPL(H) applicants, introduced by a previous regulation.
Commission Implementing Regulation (EU) 2025/1343
This regulation grants protection within the EU to the geographical indication (GI) ‘Gështenja e Malësisë së Madhe,’ a type of chestnut from Albania. This means that only chestnuts originating from that specific region can be sold under that name within the EU. It prevents misuse and ensures fair competition.
Commission Implementing Regulation (EU) 2025/1290
This regulation lays down the technical and organisational arrangements for setting up a electronic system for waste shipments. The regulation sets up requirements for exchange of data, access requirements, data storage and protection, interoperability of systems of EU member states.
Commission Implementing Regulation (EU) 2025/1401
This regulation modifies Implementing Regulation (EU) 2021/620 by updating the disease-free status and eradication programs for certain animal diseases in several Member States. Key changes include removing Slovenia and parts of Spain from the list of regions with disease-free status for bluetongue virus, altering the list of Netherlands zones with disease-free status for highly pathogenic avian influenza, and adding Sweden to the list of countries disease-free status for certain aquatic animal diseases
Commission Implementing Regulation (EU) 2025/1446
This regulation suspends certain commercial rebalancing measures—specifically, additional customs duties—on specific products originating in the United States. This suspension, which extends until August 6, 2025, is intended to facilitate cooperation with the United States in resolving ongoing trade disputes.
Commission Implementing Regulation (EU) 2025/1342
This regulation imposes a definitive anti-dumping duty on imports of multilayered wood flooring (MWF) originating from China. This follows an investigation into dumping practices. The regulation establishes specific duty rates for different Chinese producers and outlines requirements for invoices to benefit from these individual rates. It also addresses potential circumvention and retroactively collects provisional duties.
Council Regulation (EU) 2025/1409
This regulation establishes the conversion rate between the euro and the Bulgarian lev at 1.95583 lev per 1 euro. It sets the stage for Bulgaria to adopt the euro on January 1, 2026.
Council Regulation (EU) 2025/1408
This regulation amends Regulation (EC) No 974/98 to include Bulgaria as a Member State adopting the euro. It sets the date for the euro’s introduction in Bulgaria as January 1, 2026. This regulation also states, that will be no phasing out period for Bulgarian currency.
Regulation (EU) 2025/1355 of the European Central Bank (ECB/2025/22)
This regulation sets the oversight requirements for systemically important payment systems (SIPS) in the Eurozone. It requires operators of payment systems to be reliable and fulfill the requirements for legal soundness, governance, general business risk, cyber risk management, outsourcing, and to fulfill other requirements.
Review of each of legal acts published today:
Commission Delegated Regulation (EU) 2025/843 of 5 May 2025 amending Annex I to Regulation (EU) 2019/1021 of the European Parliament and of the Council as regards UV-328
This Commission Delegated Regulation (EU) 2025/843 amends Annex I to Regulation (EU) 2019/1021 regarding persistent organic pollutants, specifically concerning the substance UV-328. The regulation incorporates decisions made at the international level under the Stockholm Convention to include UV-328 in the list of prohibited substances with specific exemptions. It aims to regulate the presence and use of UV-328 within the EU, considering its prior inclusion in Annex XIV to Regulation (EC) No 1907/2006 (REACH) and the absence of authorization applications for its use.
The regulation consists of two articles and an annex. Article 1 states that Annex I to Regulation (EU) 2019/1021 is amended in accordance with the Annex to this regulation. Article 2 specifies the date of entry into force of the regulation. The Annex adds a new entry to Part A of Annex I of Regulation (EU) 2019/1021, introducing UV-328 (2-(2H-benzotriazol-2-yl)-4,6-di-tert-pentylphenol) with its CAS and EC numbers, and outlines specific exemptions and concentration limits.
The most important provisions of this regulation are the introduction of UV-328 into the list of prohibited substances and the establishment of specific exemptions for its use in certain articles and applications. It sets concentration limits for UV-328 as an unintentional trace contaminant in substances, mixtures, or articles, starting at 100 mg/kg and decreasing to 1 mg/kg over four years. Exemptions are granted for the placing on the market and use of UV-328 in articles such as land-based motor vehicles, industrial coatings, mechanical separators in blood collection tubes, triacetyl cellulose film in polarisers, photographic paper, civilian and military aircrafts and spare parts for various applications, each with specific expiration dates. The regulation also clarifies that articles containing UV-328 already in use before the expiry of the exemptions can continue to be used.
Commission Delegated Regulation (EU) 2025/1399 of 5 May 2025 amending Annex I to Regulation (EU) 2019/1021 of the European Parliament and of the Council as regards perfluorooctanoic acid (PFOA), its salts and PFOA-related compounds
This Commission Delegated Regulation (EU) 2025/1399 amends Annex I to Regulation (EU) 2019/1021 regarding persistent organic pollutants, specifically concerning perfluorooctanoic acid (PFOA), its salts, and PFOA-related compounds. The regulation adjusts the existing exemptions and unintentional trace contaminant (UTC) limits for these substances, particularly in the context of fire-fighting foams. It aims to provide operators with sufficient time to transition to alternative foams while ensuring clarity on the types of foams covered under the regulation.
The regulation modifies Annex I of Regulation (EU) 2019/1021 by:
* Replacing a reference to ‘perfluorooctane sulfonic acid and its derivatives (PFOS)’ with ‘perfluorooctane sulfonic acid (PFOS), its salts and PFOS-related compounds’ to align with the wording in the PFOS entry.
* Introducing a temporary, higher UTC limit for PFOA and its related compounds in already installed fire-fighting foams, setting it at 1 mg/kg for PFOA or its salts and 10 mg/kg for individual or combined PFOA-related compounds until 3 August 2028.
* Setting a UTC limit of 10 mg/kg for the sum of PFOA, its salts, and PFOA-related compounds in fluorine-free fire-fighting foams installed after cleaning systems that previously contained PFOA foams.
* Extending the exemption for the use of PFOA-containing fire-fighting foam in already installed systems from 4 July 2025 to 3 December 2025.
* Adding a definition of “firefighting foam” to include any mixture used to fight fires with foam, including concentrates and solutions.
* Clarifying that articles containing PFOA, its salts, or PFOA-related compounds that were already in use under a valid exemption can continue to be used after the exemption expires.
* Deleting review clauses related to UTC limits for medical devices and substances used as transported isolated intermediates.
The most important provisions for practical use are the extended deadline for the fire-fighting foam exemption (until December 3, 2025) and the temporary increase in UTC limits for PFOA and related compounds in installed fire-fighting foams (1 mg/kg for PFOA salts, 10 mg/kg for PFOA-related compounds until August 3, 2028). Additionally, the clarified definition of “firefighting foam” and the allowance for continued use of articles already in use under previous exemptions provide important context for compliance.
Commission Implementing Regulation (EU) 2025/1345 of 14 July 2025 correcting certain language versions of Annex I to Regulation (EU) No 1178/2011 laying down technical requirements and administrative procedures related to civil aviation aircrew pursuant to Regulation (EC) No 216/2008 of the European Parliament and of the Council
This Commission Implementing Regulation (EU) 2025/1345 addresses errors in specific language versions of Annex I to Regulation (EU) No 1178/2011, which concerns technical requirements and administrative procedures for civil aviation aircrew. The regulation specifically corrects errors in the Estonian and Swedish language versions of Part-FCL (Flight Crew Licensing) related to recency requirements for LAPL(H) holders and training requirements for PPL(A) and PPL(H) applicants. These errors were introduced by Commission Implementing Regulation (EU) 2024/2076.
The regulation consists of a preamble outlining the reasons for the corrections, followed by two articles. Article 1 contains the corrections to the Estonian and Swedish language versions of Annex I to Regulation (EU) No 1178/2011. Article 2 states that the regulation will enter into force twenty days after its publication in the Official Journal of the European Union and confirms its binding and directly applicable nature in all Member States. This regulation does not introduce new requirements but rather corrects inaccuracies in existing ones.
The most important aspect of this regulation is that it ensures the accuracy and consistency of the legal text across different language versions. For Estonian and Swedish speakers involved in civil aviation, it is crucial to be aware of these corrections to ensure compliance with the correct requirements for flight crew licensing and recency.
Commission Implementing Regulation (EU) 2025/1343 of 11 July 2025 granting protection in the Union to the Geographical Indication Gështenja e Malësisë së Madhe registered in the International Register of Appellations of Origin and Geographical Indications of the Geneva Act
This Commission Implementing Regulation (EU) 2025/1343 grants protection within the European Union to the geographical indication (GI) ‘Gështenja e Malësisë së Madhe,’ which is registered in the International Register of Appellations of Origin and Geographical Indications under the Geneva Act. This means that the name ‘Gështenja e Malësisë së Madhe’ can only be used in the EU for chestnuts originating from the specified region in Albania. The regulation acknowledges that the necessary conditions for protection have been met and that no oppositions were received following the publication of the GI in the Official Journal of the European Union.
The regulation consists of a preamble outlining the legal basis and reasoning behind the decision, followed by two articles. Article 1 formally grants protection to the name ‘Gështenja e Malësisë së Madhe’ within the EU, specifying that it identifies chestnuts. Article 2 states that the regulation will enter into force twenty days after its publication in the Official Journal of the European Union and confirms that it is binding and directly applicable in all Member States. There are no direct changes to previous versions, as this is the initial implementation of protection for this specific GI following its international registration.
The most important provision is Article 1, which provides legal protection to the Geographical Indication ‘Gështenja e Malësisë së Madhe’ within the European Union. This protection prevents the misuse, imitation, or evocation of the name for chestnuts not originating from the specified geographical area, ensuring fair competition and protecting consumers from misleading products.
Commission Implementing Regulation (EU) 2025/1290 of 2 July 2025 laying down rules for the application of Regulation (EU) 2024/1157 of the European Parliament and of the Council as regards the requirements necessary for the interoperability between the central system for the electronic submission and exchange of information and documents related to shipments of waste and other systems or software, as well as other technical and organisational requirements necessary for the practical implementation of such electronic submission and exchange of information and documents
Here’s a breakdown of the Commission Implementing Regulation (EU) 2025/1290:
**1. Essence of the Act:**
This regulation sets the stage for a digital transformation in how the EU manages waste shipments. It establishes the technical and organizational rules needed for a central electronic system to work smoothly with national systems and other software used by businesses. The goal is to make it easier to exchange information, improve enforcement, and ultimately make waste shipment processes more efficient and transparent across the EU.
**2. Structure and Main Provisions:**
The regulation is structured around ensuring interoperability and practical implementation of electronic systems for waste shipment information exchange. Key aspects include:
* **General Provisions (Chapter 1):** Defines the scope, key terms (central system, local system, operators, etc.), and assigns ownership/responsibility for data within the systems. It also mandates competent authorities to declare how they will access the central system.
* **Interoperability Requirements (Chapter 2):** Focuses on the technical aspects of how the central system interacts with local systems and software. This includes:
* Operator and authority identification protocols.
* Defining roles within the system (notifier, carrier, competent authority, etc.).
* A testing process to ensure local systems can properly exchange data with the central system.
* Data exchange protocols and requirements for attached documents.
* Authentication of documents.
* Rules for generating notification, Annex VII document, and movement document numbers.
* Managing data related to pre-consented facilities.
* Defining additional functionalities of the systems.
* **Practical Implementation (Chapter 3):** Details the practical aspects of using the electronic system:
* Access requirements for different users (operators, authorities).
* Data storage requirements.
* Data exchange and synchronization protocols.
* Security and data governance measures.
* Personal data protection rules, including storage limitations.
* **Other Requirements (Chapter 4):** Outlines additional obligations for competent authorities, such as providing lists of pre-consented facilities and informing operators about system updates. It also details the Commission’s obligations, including publishing relevant information and providing support.
* **Final Provisions (Chapter 5):** Sets the entry into force date for the regulation.
**3. Main Provisions for Practical Use:**
* **Declaration of Access (Article 4):** Competent authorities must inform the Commission how they and operators in their Member State will access the central system. This is a crucial step for setting up the system and determining how different users will interact with it.
* **User Registration (Articles 6-8):** The regulation sets out detailed procedures for registering operators and authorities in the central system. This includes defining the types of users (master vs. standard) and the information required for registration.
* **Interoperability Testing (Article 11):** The testing process is essential to ensure that local systems can properly exchange data with the central system. Competent authorities need to successfully complete these tests before they can fully transition to using the API for data exchange.
* **Data Storage and Protection (Articles 24-25):** The regulation includes specific rules for storing personal data within the systems, including limitations on storage periods. It also outlines the responsibilities of competent authorities and the Commission as data controllers.
* **Harmonized data exchange:** The regulation provides a detailed description of data exchange for each operation in the waste shipment.
Commission Implementing Regulation (EU) 2025/1401 of 14 July 2025 amending Annexes I, VIII, XI, XV, XVI and XVII to Implementing Regulation (EU) 2021/620 as regards the approval or withdrawal of the disease-free status of certain Member States, zones or compartments thereof as regards certain listed diseases and the approval of eradication programmes for certain listed diseases
This is Commission Implementing Regulation (EU) 2025/1401. The regulation amends Implementing Regulation (EU) 2021/620, modifying the disease-free status and eradication programs of certain Member States or their zones/compartments for specific listed diseases. These changes are due to evolving epidemiological situations within the Union.
The regulation modifies Annexes I, VIII, XI, XV, XVI, and XVII of Implementing Regulation (EU) 2021/620. These annexes list Member States, zones, or compartments with approved disease-free status or approved eradication programs for listed diseases. The changes include:
* **Annex I:** Updates the list of Italian regions with approved eradication programs for *Brucella abortus, B. melitensis,* and *B. suis* in ovine and caprine animal populations, specifically adding the province of Alessandria in Piemonte.
* **Annex VIII:**
* Removes Slovenia entirely from the list of Member States with disease-free status for infection with bluetongue virus (BTV).
* Modifies the entry for Spain, removing the peninsular part of Spain from the list of zones with disease-free status for BTV, leaving only the Canary Islands.
* Narrows down the Spanish territory with an approved optional eradication program for BTV to only the Balearic Islands.
* **Annex XI:** Removes Cobb Europe B.V. (approval number 2951) from the list of compartments in the Netherlands with disease-free status for highly pathogenic avian influenza (HPAI), but leaves Institut de selection animale B.V. with approval number 2338.
* **Annexes XV, XVI, and XVII:** Adds Sweden to the list of Member States with disease-free status for *Marteilia refringens*, *Bonamia exitiosa*, and *Bonamia ostreae* respectively, covering the whole territory of Sweden.
The most important provisions are those concerning the changes to disease-free status and eradication programs, as these directly impact trade, movement of animals, and disease control measures within the affected Member States and zones. Specifically, the removal of disease-free status for bluetongue in Slovenia and parts of Spain, and the changes regarding avian influenza in the Netherlands, will likely trigger stricter animal health controls and potential trade restrictions. The recognition of Sweden as disease-free for certain aquatic animal diseases may facilitate trade of relevant products from Sweden.
Commission Implementing Regulation (EU) 2025/1446 of 14 July 2025 suspending commercial rebalancing measures concerning certain products originating in the United States imposed by Implementing Regulation (EU) 2025/778 and amending Implementing Regulation (EU) 2023/2882
This Commission Implementing Regulation (EU) 2025/1446 suspends certain commercial rebalancing measures concerning specific products originating in the United States. These measures were initially imposed by Implementing Regulation (EU) 2025/778, which itself introduced additional customs duties on certain US goods in response to US trade policies. The current regulation aims to provide an opportunity for cooperation with the United States to resolve trade disputes.
The regulation consists of three articles. Article 1 suspends the application of Articles 2 and 3 of Implementing Regulation (EU) 2025/778 until August 6, 2025. Article 2 amends Implementing Regulation (EU) 2023/2882 by extending the suspension period for additional customs duties until the same date. Article 3 stipulates that the regulation will enter into force the day after its publication in the Official Journal of the European Union. This regulation builds upon a series of previous regulations, including those from 2018, 2020, 2023 and earlier in 2025, which initially imposed, then suspended, and now further suspends additional customs duties on specific products from the United States.
The most important provision is the suspension of additional customs duties imposed by Implementing Regulation (EU) 2025/778 until August 6, 2025. This means that, during this period, certain products originating in the United States will not be subject to these additional duties when imported into the European Union. Businesses involved in trade between the EU and the US should take note of this suspension, as it affects the cost of importing specific goods from the US. The Commission may review the suspension and potentially shorten it depending on developments in trade relations with the United States.
Commission Implementing Regulation (EU) 2025/1342 of 11 July 2025 imposing a definitive anti-dumping duty and definitively collecting the provisional duty imposed on imports of multilayered wood flooring originating in the People’s Republic of China
Here’s a breakdown of Commission Implementing Regulation (EU) 2025/1342:
**1. Essence of the Act:**
This regulation imposes a definitive anti-dumping duty on imports of multilayered wood flooring (MWF) originating from China. It finalizes the provisional duties that were put in place earlier and specifies the exact anti-dumping duty rates for various Chinese producers and exporters. The regulation follows an investigation into alleged dumping practices and resulting injury to the Union industry.
**2. Structure and Main Provisions:**
* **Background:** The regulation outlines the procedure, starting with the initiation of the anti-dumping investigation, registration of imports, and the imposition of provisional measures.
* **Product Definition:** It confirms the definition of the product concerned (MWF) and the like product produced by the Union industry.
* **Dumping:** A significant portion of the regulation deals with the determination of dumping. This includes:
* Establishing the normal value (price in the exporting country) using a methodology that accounts for significant distortions in the Chinese economy.
* Selecting Türkiye as a representative country for determining undistorted costs and prices.
* Calculating benchmarks for factors of production (raw materials, labor, etc.) and for selling, general & administrative (SG&A) expenses and profit.
* Comparing the normal value to the export price to calculate dumping margins.
* **Injury:** The regulation analyzes the injury suffered by the Union industry due to the dumped imports, considering factors like:
* Union consumption, production, sales, market share, and prices.
* The impact of imports from China on these indicators.
* **Causation:** It establishes a causal link between the dumped imports and the injury to the Union industry, considering other potential factors.
* **Level of Measures:** The regulation determines the level of anti-dumping duties needed to remove the injury, based on the injury margin.
* **Union Interest:** It assesses whether imposing anti-dumping measures is in the overall interest of the Union, considering the interests of the Union industry, importers, users, and consumers.
* **Definitive Anti-Dumping Measures:** The regulation sets out the definitive anti-dumping duty rates for specific Chinese companies and a general rate for all other companies. It also includes provisions to prevent circumvention of the duties.
* **Retroactivity:** It retroactively collects the provisional duties imposed earlier, based on findings that importers were aware of the dumping and that there was a surge in imports that could undermine the effectiveness of the duties.
**3. Main Provisions for Practical Use:**
* **Anti-Dumping Duty Rates (Article 1):** This is the core of the regulation. It lists the exact anti-dumping duty percentages that will be applied to imports of MWF from specific Chinese companies. Importers need to know these rates to calculate their costs.
* **Invoice Declaration (Article 1(3)):** To benefit from the individual duty rates, importers must ensure that their commercial invoices include a specific declaration signed by an official of the Chinese exporting company. This is a key requirement for customs authorities.
* **Product Exclusions (Article 1(4)):** The regulation clearly states which types of flooring are *not* subject to the anti-dumping duty (e.g., bamboo flooring, mosaic floors).
* **Retroactive Collection (Article 3):** Importers should be aware that the provisional duties imposed earlier will be definitively collected.
* **Special Monitoring (Section 9):** The Commission will be monitoring imports of certain other CN codes (4412 52 00 and 4412 92 00) and imports from other third countries in order to prevent circumvention.
Council Regulation (EU) 2025/1409 of 8 July 2025 amending Regulation (EC) No 2866/98 as regards the conversion rate to the euro for Bulgaria
This Council Regulation (EU) 2025/1409 amends Regulation (EC) No 2866/98 to establish the conversion rate between the euro and the Bulgarian lev. This regulation is a necessary step for Bulgaria to adopt the euro on 1 January 2026. The conversion rate is set at 1.95583 lev per 1 euro, which mirrors the current central rate of the lev within the Exchange Rate Mechanism (ERM II).
The regulation consists of two articles. Article 1 amends Article 1 of Regulation (EC) No 2866/98 by inserting the conversion rate for the Bulgarian lev. Article 2 specifies that the regulation will come into force on 1 January 2026 and is binding in its entirety and directly applicable in all Member States. This regulation adds Bulgaria to the list of countries with a fixed conversion rate to the euro, which is a change from the previous version of Regulation (EC) No 2866/98.
The most important provision is the establishment of the conversion rate of 1.95583 lev per 1 euro. This fixed rate is crucial for financial transactions, accounting, and all economic activities within Bulgaria as it transitions to using the euro.
Council Regulation (EU) 2025/1408 of 8 July 2025 amending Regulation (EC) No 974/98 as regards the introduction of the euro in Bulgaria
This Council Regulation (EU) 2025/1408 amends Regulation (EC) No 974/98 to include Bulgaria among the Member States adopting the euro. It sets the date for the introduction of the euro in Bulgaria as 1 January 2026, with euro banknotes and coins becoming legal tender on the same day. The regulation specifies that there will be no phasing-out period for the Bulgarian currency.
The regulation consists of two articles. Article 1 amends the Annex to Regulation (EC) No 974/98 by inserting an entry for Bulgaria, specifying the euro adoption date (1 January 2026), the cash changeover date (1 January 2026), and confirming that there will be no phasing-out period. Article 2 stipulates that the regulation will enter into force on 1 January 2026 and is binding in its entirety and directly applicable in all Member States.
The most important provision is the inclusion of Bulgaria in the Annex to Regulation (EC) No 974/98, which legally establishes the country’s adoption of the euro on 1 January 2026, and the fact that there will be no phasing out period.
Regulation (EU) 2025/1355 of the European Central Bank of 2 July 2025 on oversight requirements for systemically important payment systems (ECB/2025/22) (recast)
Here’s a breakdown of the key aspects of the Regulation (EU) 2025/1355 of the European Central Bank (ECB/2025/22) on oversight requirements for systemically important payment systems (SIPS), which is a recast of a previous regulation.
This regulation aims to ensure the smooth operation of payment systems within the Eurosystem by setting out criteria for identifying systemically important payment systems and establishing oversight requirements for their operators. It focuses on maintaining the stability and efficiency of these systems, which are crucial for the financial stability of the Eurozone. The regulation addresses various risks associated with SIPS, including legal, credit, liquidity, operational, and cyber risks, and provides a framework for their comprehensive management. It also emphasizes the importance of governance, access criteria, and transparency in the operation of SIPS.
**Structure and Key Provisions:**
* **Part I (Subject Matter, Scope, and Definitions):** Defines key terms like ‘payment system,’ ‘SIPS operator,’ and various types of risks. It also specifies the scope of the regulation.
* **Part II (Identification Criteria and Process):** Sets out the criteria for identifying a payment system as a SIPS, including quantitative thresholds based on the value and volume of payments processed, as well as qualitative considerations. It also outlines the process for identifying and notifying SIPS operators.
* **Part III (Requirements Imposed on SIPS Operators):** This is the core of the regulation, detailing the specific requirements for SIPS operators. These include:
* **Legal Soundness:** Ensuring a high degree of legal certainty for all material aspects of the SIPS.
* **Governance:** Establishing effective governance arrangements with clear lines of responsibility and accountability.
* **Framework for Comprehensive Management of Risks:** Implementing a sound framework to identify, measure, monitor, and manage various risks.
* **Credit Risk:** Managing credit exposures to participants.
* **Collateral:** Accepting only high-quality assets as collateral (with exemptions for Eurosystem SIPS).
* **Liquidity Risk:** Holding sufficient liquid resources to ensure timely settlement.
* **Final Settlement:** Ensuring final settlement takes place no later than the end of the intended settlement date.
* **Money Settlements:** Preferring settlement in central bank money.
* **Participant-Default Rules and Procedures:** Establishing clear rules and procedures to manage participant defaults.
* **General Business Risk:** Maintaining robust management and control systems for general business risks.
* **Custody and Investment Risks:** Holding assets with supervised entities and establishing a prudent investment strategy.
* **Operational Risk:** Establishing a robust framework to manage operational risk, including a business continuity plan.
* **Cyber Risk:** Implementing a comprehensive cyber resilience framework and strategy.
* **Outsourcing:** Managing risks associated with outsourcing functions.
* **Access and Participation Criteria:** Establishing non-discriminatory access criteria.
* **Tiered Participation Arrangements:** Managing risks arising from tiered participation.
* **Efficiency and Effectiveness:** Ensuring the SIPS meets the needs of the markets it serves.
* **Communication Procedures and Standards:** Using internationally accepted communication standards.
* **Disclosure of Rules, Key Procedures, and Market Data:** Ensuring transparency through disclosure.
* **Part IV (Competent Authorities):** Defines the powers of competent authorities (ECB or national central banks) to oversee SIPS operators.
* **Part V (Corrective Measures and Sanctions):** Specifies the corrective measures and sanctions that can be imposed for non-compliance.
* **Part VI (Review of Application of this Regulation):** Provides for a periodic review of the regulation’s application.
* **Part VII (Repeal and Final Provisions):** Repeals the previous regulation and sets out final provisions, including the regulation’s entry into force.
**Main Provisions for Practical Use:**
* **Identification Criteria (Article 3):** Payment system operators need to assess whether they meet the quantitative criteria (payment values, volumes, cross-border activity) or could be designated as SIPS based on qualitative factors.
* **Legal Soundness (Article 8):** SIPS operators must ensure their rules and procedures are legally sound and enforceable in all relevant jurisdictions.
* **Governance (Article 9):** SIPS operators must establish clear governance structures with defined roles and responsibilities for the board and management.
* **Risk Management Framework (Article 10):** SIPS operators must implement a comprehensive risk management framework to identify, measure, monitor, and manage various risks.
* **Cyber Risk Management (Article 21):** SIPS operators must establish a comprehensive cyber resilience framework and conduct regular testing, including TIBER-EU threat-led penetration tests.
* **Outsourcing (Article 22):** SIPS operators must carefully manage risks associated with outsourcing, ensuring written contracts and exit strategies are in place.
* **Access Criteria (Article 23):** SIPS operators must establish and publicly disclose non-discriminatory access and participation criteria.
* **Cooperation with Competent Authorities (Article 28):** SIPS operators must cooperate with competent authorities and ensure compliance with the regulation.
This regulation is a significant piece of legislation for payment systems operating within the Eurozone, requiring them to adhere to stringent oversight requirements to ensure their stability and efficiency.
