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European Commission’s 2026 Work Programme: UCITS Eligible Assets Directive review deprioritised; simplification, competitiveness and tax/ESG initiatives for financial services and fund managers

Published on: 05 November 2025

Published by a LexisNexis Ireland - Banking & Financial Services expert
Legal News
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The European Commission’s 2026 Work Programme

Published on 21 October 2025, the European Commission’s 2026 Work Programme (the ‘Work Programme’) outlines a bold yet practical and comprehensive legislative plan for the year ahead. Centred on competitiveness, simplification and strategic consolidation, it marks a clear reorientation of priorities across financial services and investment funds, signalling a recalibration. Although the Commission still advances both the digital and sustainability transitions, the Work Programme conspicuously lowers the priority of some reviews, among them the much-awaited reassessment of Commission Directive 2007/16/EC (the ‘Eligible Assets Directive’, or ‘EAD’). Despite prior traction, the EAD review—defining which assets UCITS funds may hold—has slipped down the legislative schedule and been deferred in practical terms. This move follows ESMA’s technical advice of 26 June 2025, recommending a stricter look-through methodology and narrower, more precise definitions for specified eligible assets in particular...

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