Regulation is being refined rather than expanded, according to the latest edition of The CUBE Read, the RegTech firm’s fortnightly analysis of regulatory change in financial services.
Covering 3 to 16 October 2026, CUBE identifies three developments reshaping the work of compliance and risk teams: rules are becoming more proportionate, supervision more connected, and change more traceable.
The first trend is proportionality. CUBE notes that the European Banking Authority (EBA) has proposed reducing data points in EU bank reporting by roughly half. It would keep a single regime for all banks while easing requirements for small and non-complex institutions. The European Central Bank put forward a higher threshold for small banks and fewer supervisory reviews. Meanwhile AMLA, the EU’s anti-money laundering authority, sent final draft private-sector standards to the European Commission. These include lighter due diligence for lower-risk cases, with conditions attached to remote verification. CUBE says the European Supervisory Authorities’ 2027 plans follow the same path, targeting DORA oversight and PRIIPs KID simplification alongside a focus on AI and digital-asset tokens. EIOPA also consulted on outcomes-focused supervision of insurance investment product sales without layering on new requirements.
For CUBE, this makes relevance the critical question. When rules scale with the firm, teams need to know precisely which thresholds, reporting scopes and standards apply to them. The firm argues that businesses should move away from spreadsheet tracking towards structured, profile-based coverage.
The second theme is joined-up supervision. CUBE highlights AMLA’s proposal for cross-border information sharing without prior consent, supported by a central database of AML/CFT measures and entity-level data. EIOPA asked supervisors to scrutinise the full financing structure of private equity-backed insurers. In crypto, ESMA told firms to stop servicing stablecoins that fall short of MiCA within three months, while AMLA urged the Commission to address gaps around staking, DeFi and asset-referenced token issuers. The FSB also flagged uncertainty over how global stablecoins are treated across borders. CUBE argues that firms answering to multiple supervisors need a single, consistent view spanning Europe, the US, Canada, Asia and Australia.
The third development concerns the full lifecycle of rules. At proposal stage, the FCA set out transition arrangements for its transaction reporting regime due on 3 April 2028, and ASIC proposed net tangible asset models for digital asset platforms. Final texts followed, including MAS’s AI guidelines, effective October 2027, and 12 sound practices on AI adoption from the FSB. On guidance, ESMA flagged poor practice in impact and climate transition claims, and the FCA told motor finance lenders to prepare for the scheme being quashed ahead of a February 2027 hearing.
CUBE says tracking each rule from consultation to final guidance gives teams time to model scenarios, prepare for deadlines and evidence their decisions.
The through line, according to CUBE, is a more workable regulatory picture. Relevance sets the workload, a connected view keeps pace with coordinated supervisors, and lifecycle tracking turns each stage into planning time.
For more, read the story here.
Copyright © 2026 RegTech Analyst
Copyright © 2026 RegTech Analyst
