At the end of each month, the SAFE Regulatory Radar highlights a selection of important news and developments on financial regulation at the national and EU level.
Savings and Investment Union: First EU Financial literacy strategy
On 30 September 2025, the European Commission released two initiatives as part of the Savings & Investments Union: A communication on a European financial literacy strategy and a recommendation for the introduction of savings and investment accounts (SIAs). In member states, SIAs are offered by regulated financial services providers to complement an existing savings account and to offer individuals an easy opportunity to invest in a specific financial product. The financial literacy package aims to facilitate retail investment participation in capital markets and direct private savings toward growth-enhancing investments, preferably within the EU.
As the EU lacks legislative competence in both areas, the financial literacy communication complements national strategies and initiatives in four dimensions:
1) Coordination and best practice: Starting in 2026, the Commission will assemble thematic meetings of national experts. In regular practitioner workshops, for example, stakeholders can share best practices and build a functioning community of financial literacy actors. The Commission aims to support a voluntary, principles-based EU code of conduct for private and not-for-profit providers that countries can use for their national strategies.
2) Communication and awareness-raising:
The Commission will run an EU-wide campaign that complements national efforts and focuses on practical personal finance skills, such as budgeting, retirement planning, debt and risk management, and fraud/scam prevention. By 2026, jointly with member states, it will stand up a network of reputable “financial literacy ambassadors”.
3) Monitoring progress and assessing impacts:
The Commission will continue to feature financial literacy assessments, which can inform country-specific recommendations where appropriate. The Commission will closely collaborate with stakeholders, such as the Organisation for Economic Co-operation and Development (OECD), in the design of indicators and benchmarks.
4) Funding for financial literacy initiatives: The Commission will launch a website to help stakeholders navigate current EU funding channels and invites countries to make national funding more visible. A project funded by the Federal Ministry of Research, Technology and Space (“Bundesministerium für Forschung, Technologie und Raumfahrt”, BMFTR) and led by SAFE researcher Christine Laudenbach analyzes the distribution of the impact of financial literacy in Germany.
Some member states have already introduced savings and investment accounts to enable and incentivize retail investors to invest in capital markets. The SIA recommendation proposes that all member states establish SIA frameworks to enable frictionless access to financial markets and various asset classes, including shares and bonds. Risky assets, such as cryptocurrencies or derivatives, are to be excluded. The two main features of the SIA framework are the facilitated tax compliance (Article 7) and the beneficial tax treatment (Article 8) of the accounts. An accompanying staff working document compares existing SIA from 13 member states and three non-EU countries, highlighting the importance of tax incentives for citizens.
Carbon border adjustment mechanism: Reducing red tape for businesses
On 8 October 2025, the EU adopted Regulation (EU) 2025/2083, amending the Carbon Border Adjustment Mechanism (CBAM) framework (Regulation 2023/956) to reduce red tape for small importers, enhance enforcement, and clarify how carbon prices paid abroad affect CBAM liabilities. The amendment clarifies who must comply and when, and prepares the infrastructure (registry, platform, pricing, and verification) for the full financial phase-in across 2026–2027.
Companies that import less than 50 tons per year of carbon-intensive goods, such as iron and steel or fertilizers, will now be exempt from reporting obligations. Customs only clear goods for authorized declarants, and import data is cross-checked with the CBAM registry.
For certificate pricing, the default is the weekly average of EU Emissions Trading System (EU ETS) auction prices. A common central platform for selling and repurchasing CBAM certificates will go live on 1 February 2027.
The regulation also strengthens monitoring, anti-avoidance, and penalties. A newly established EU-level monitoring system for the 50-ton threshold allows authorities to disregard artificial arrangements aimed at staying below it, such as non-genuine splitting of consignments. Penalties align with the EU ETS excess-emissions penalty, with limited scope for reductions where errors arise from third-party information or minor overruns.
Updates:
- Members of the European Parliament set November vote on streamlined sustainability and due diligence rules: On 22 October, the European Parliament voted down the Legal Affairs Committee’s negotiating mandate on simplified sustainability reporting and due diligence rules, with 309 votes in favor, 318 against, and 34 abstentions. The European Parliament will now decide its position on the Commission’s Omnibus I proposal, at the 13 November 2025 plenary in Brussels. The Omnibus I directive was previously reported in the SAFE Regulatory Radar, February 2025.
- Anti-money laundering supervision: On 8 October 2025, the European Banking Authority (EBA) published a new report reviewing all EU and European Economic Area (EEA) authorities a new report. The EBA finds that most regulators now have dedicated anti-money laundering strategies, targeted supervisory plans, and improved coordination both domestically and cross-border. Read the previous report on the money laundering supervision in the SAFE Regulatory Radar in May 2025.
- ESMA updates Markets in Crypto-Assets Regulation (MiCA) Q&As: On 17 October 2025, the European Securities and Markets Authority (ESMA) updated its MiCA Q&As, adding two new items (Q&A 2653 and Q&A 2654). These additions clarify (i) how to differentiate between various execution services and (ii) the treatment of crypto-assets admitted to trading before 30 December 2024. Read the previous SAFE report on MiCA on the SAFE Regulatory Radar in January 2025.
- Commission's Amendments to Solvency II rules: On 29 October 2025, the European Commission published a review of measures to mobilize insurers’ capital and enhance their investment capacity. The Commission’s amendments to the Solvency II Delegated Regulation aim to boost long-term investing capacity while maintaining policyholder protection. They introduce a dedicated treatment for long-term equity, allowing insurers to support European companies more easily. The review also eliminates unnecessary prudential costs for securitization investments, supporting the June 2025 securitization package aimed at reviving the EU market.
- ESMA revises manual on post-trade transparency under MiFID II/MiFIR: On 10 October 2025, ESMA published an update of its manual on post-trade transparency under Markets in Financial Instruments Directive II (MiFID II)/Markets in Financial Instruments Regulation (MiFIR). The revision now includes a new section 6 on pre-trade transparency for equity instruments. The updated manual aims to clarify relevant provisions and support the competent authorities of member states and natural or legal persons. Read more on the manual of post-trade transparency in the SAFE Regulatory Radar in October 2024.
Public consultations
|
Sara Fadavi is Financial Policy Analyst at the SAFE Policy Center.
