The European Securities and Markets Authority (ESMA) has published a risk analysis article examining the systemic importance of cyber risk in EU financial markets, with a focus on measurement and stress simulation. It highlights the growing frequency and sophistication of cyber incidents and the challenges they pose for financial stability, particularly in terms of risk assessment and monitoring. The article introduces conceptual frameworks to understand how individual cyber events can become systemic, focusing on exposures, shock propagation and impact. Drawing on data from the Securities Financing Transactions Regulation (Regulation (EU) 2015/2365) (SFTR), it also underscores the role of the Digital Operational Resilience Act (DORA), which establishes a harmonised framework for digital operational resilience and a reporting regime for major information and communication technology (ICT) incidents by EU financial institutions.

The Health and Safety Executive (HSE) has published its annual statistics on work-related ill health and workplace injuries for 2023—2024. The report reveals that 1.7m workers reported suffering from work-related ill health, with approximately half of these cases relating to stress, depression or anxiety. The data shows 33.7m working days were lost due to work-related ill health or injury. Additionally, 138 workers were killed in work-related accidents, while 604,000 sustained self-reported non-fatal injuries. The economic impact is significant, with the estimated annual costs of workplace injury and new cases of work-related ill health reaching £21.6b in 2022—2023, a decrease of £1.6b compared to the previous year. Despite improvements over the past 50 years, the HSE emphasises the need for continued efforts to enhance workplace safety and health across Britain

Practice Management analysis: This year’s Mental Health Awareness Week (MHAW), which runs from 8–14 May, will be exploring the difference between ‘surviving or thriving’. Elizabeth Rimmer, CEO of LawCare, says there is still significant stigma about mental health in the legal profession which stops people seeking help.

This week's edition of PI & Clinical Negligence weekly highlights includes the minutes of the Civil Procedure Rule Committee (CPRC) annual open meeting of 8 May 2025. We look at the recent Privy Council decision on unlawful detention and vicarious liability, a Court of Appeal finding that a local authority was not liable in negligence or public nuisance for injuries caused by items left by an unidentified third party and a landmark High Court ruling addressing recoverability of deputyship fees under the Fatal Accidents Act. We also bring you two new Practice Notes that provide insights into claims involving occupational stress and a new Checklist covering contributory negligence. We also feature our specialised Quantum Database and case submission Portal. In addition, we have our usual round-up of other news, cases, webinars and New Law Journal articles of interest.

The Solicitors Regulation Authority (SRA) has published a thematic review based on visits to 25 law firms and discussions with 36 compliance officers, examining how compliance officers for legal practice (COLPs) and finance/administration (COFAs) carry out their regulatory duties. The review found that while most firms had internal compliance controls, only one COLP could fully describe their regulatory obligations and many officers lacked clarity on reporting and record-keeping requirements. Despite 1,377 internal breach reports being available, 86% of compliance officers had not made issues known to the SRA in the preceding three years. The SRA also identified that 44% of firms did not have a deputy compliance officer and that compliance officers typically spent only around 26% of their time on compliance responsibilities, with around 52% reporting stress related to the role and limited support/resources available. The findings will inform the SRA’s ongoing consumer protection work and development of enhanced guidance and support for compliance officers.

The European Parliament’s Committee on Employment and Social Affairs has adopted recommendations calling on the European Commission to propose legislation establishing minimum requirements to prevent and reduce work-related psychosocial risks, including stress, burnout, harassment and mental and physical disorders. The proposed legislation would impose binding duties on employers to assess psychosocial risks regularly, implement prevention and support measures, protect workers from violence and discrimination, ensure human oversight of workplace algorithms and support employees returning after related absences. It would also recognise psychosocial risks as a cause of occupational disease and presume that resulting harm is work-related unless the employer proves otherwise. The recommendations were adopted by 41 votes to 12, with 4 abstentions, and are expected to be considered by Parliament in October 2026.

A round-up of financial services developments, including (among other things) PRA and BoE publish policy and supervisory statements on resolution reporting and disclosure.

IP analysis: Artificial intelligence (AI) tools are increasingly being explored by patent offices worldwide as a means of improving efficiency, consistency, and search quality. For patent applicants and attorneys, understanding how these tools are used, and just as importantly how they are not used, is essential. This article considers the current position at the UK Intellectual Property Office (UKIPO) the European Patent Office (EPO) and the United States Patent and Trademark Office (USPTO). All three offices stress the continued importance of human judgment emphasising that patent examiners, and indeed applicants, must critically assess any outputs generated by AI-assisted tools. This review, by Anton Baker of D Young & Co, gives examples of current tools being developed and used by the offices.

The Bank of England (BoE) has published a discussion paper examining the effectiveness and impact of potential reforms to the UK gilt repo market, developed in consultation with the Financial Conduct Authority (FCA), HM Treasury (HMT) and the UK Debt Management Office (DMO). The paper focuses on two key proposals: greater central clearing of gilt repo transactions and minimum haircuts on non-centrally cleared trades. The discussion paper highlights the role of the gilt repo market in supporting financial stability, liquidity management and monetary policy transmission. It identifies vulnerabilities such as limited dealer intermediation capacity during stress, zero or near-zero haircuts, and the build-up of leveraged positions. Responses are sought by 28 November 2025.

The European Securities and Markets Authority (ESMA) has published its final report setting out draft Regulatory Technical Standards (RTS) concerning the active account requirement (AAR) under the European Market Infrastructure Regulation (EU) 2024/2987 (EMIR 3). Based on feedback received during the public consultation, ESMA has adjusted the operational conditions and stress-testing requirements associated with the AAR. The report outlines simplified reporting requirements, clarifies the representativeness obligation, and provides further detail on the operational conditions. ESMA will submit the report and draft RTS to the European Commission, which has a three-month period for endorsement. The RTS will then be subject to review by the European Parliament and the Council of the EU.

The Health & Care Professionals Council (HCPC) has published a blog on the subject of the importance of maintaining fitness to practise, wellbeing and seeking help where necessary. In the blog post, Head of Fitness to Practise, Laura Coffey, states: ‘We are increasingly aware of the demand and pressures on health and care professionals and indeed most recently with the added impact of the global [coronavirus (COVID-19)] pandemic. Increasing workload on professionals and healthcare services, combined with growing external scrutiny of their practise has often been linked directly to high stress and poor wellbeing.’ She also highlights that the HCPC is currently consulting on the standards of proficiency, and that ‘one key area of change being proposed within this consultation is the importance of our registrants maintaining fitness to practise as well as considering the role of mental health and being able to seek help where necessary’. This includes whether the standards should ‘mention mental health or wellbeing explicitly’.

Ireland—Banking & Financial Service analysis: This article, was written by A&L Goodbody’s Asset Management and Investment Funds Team. UCITS Eligible Assets, sustainability-related claims, sustainability risks and disclosures, UCITS Q&As, NBFI, sustainability reporting, taxonomy and financial services reporting, outsourcing, ESG, ESMA newsletter, AML/CFT.