Global Regulatory Insights: Monthly Spotlight | Europe – May 2024

Here is a summary of the key regulatory updates for the European Union in May 2024:

Temu designated as Very Large Online Platform, increasing regulatory scrutiny and compliance obligations.
ESMA published templates and tools for voluntary dry run exercise to support the DORA implementation, enhancing financial entities' resilience against ICT-related risks.
ESMA published Final Report on rules on conflicts of interest of crypto-asset service providers (CASP) under the Markets in Crypto Assets Regulation (MiCA), promoting transparency and investor protection.
European Data Protection Board (EDPB) published its response to the European Commission on Article 15 DMA Consumer Profiling Reports, highlighting the need for strict data protection measures in consumer profiling practices.
ESMA issued a statement providing initial guidance to firms using Artificial Intelligence technologies (AI) when providing investment services to retail clients, ensuring transparency, fairness, and robust oversight mechanisms.

For more information on recent regulatory developments, you may refer to the key takeaways which include:

European Council adopted conclusions on corporate sustainability, emphasizing the importance of due diligence and responsible business practices.
ESMA launched consultations on commodity derivatives, non-equity trade transparency, and Consolidated Tape Providers, seeking feedback on regulatory frameworks for finance and markets.
European Council approved conclusions on cybersecurity, financial literacy, and financial sustainability, aiming to enhance the EU's digital and financial resilience.
* New regulations entered into force on waste shipments and environmental crime, aimed at reducing illegal waste trade and promoting recycling and enforcement.

To stay compliant with these regulatory developments, businesses and organizations should: [list of compliance tips]