Introduction to EU REACH 'EU REACH' is an abbreviated term for Regulation (EC) 1907/2006 of the European Parliament and of the Council concerning the registration, evaluation, authorisation and restriction of chemicals. EU REACH came into force on 1 June 2007 to replace a number of EU Directives and Regulations with a single piece of legislation and applies directly within all the Member States of the EU. EU REACH assigns the burden of responsibility for understanding and managing the risks associated with chemicals placed on the EU market, and their use, to those manufacturing and/or importing goods containing chemicals. The primary aims of EU REACH are to: • ensure a high-level of protection of human health and the environment • allow the free movement of substances on the EU market • enhance the competitiveness and innovation of the EU chemicals industry, and • promote the use of methods other than vivisection and/or animal testing for the assessment of the hazardous properties of substances This Practice Note forms part of a set of guidance covering EU REACH.

Introduction to EU REACH 'EU REACH' is an abbreviated term for Regulation (EC) 1907/2006 of the European Parliament and of the Council concerning the registration, evaluation, authorisation and restriction of chemicals. EU REACH came into force on 1 June 2007 to replace a number of EU Directives and Regulations governing chemicals with a single piece of legislation. It applies directly to all the Member States of the EU. EU REACH assigns the burden of responsibility for understanding and managing the risks associated with chemicals placed on the EU market, and their use, to those manufacturing and/or importing goods containing chemicals. The primary aims of REACH are to: • ensure a high level of protection of human health and the environment • allow the free movement of substances on the EU market • enhance the competitiveness and innovation of the EU chemicals industry, and • promote the use of alternative methods for the assessment of the hazardous properties of substances such as quantitative structure-activity relationships This Practice Note forms part of a set of guidance

This Practice Note sets out the obligations of cryptoasset service providers (CASPs) under the EU’s Recast Wire Transfer Regulation 2 (Recast EU WTR2) (also referred to as the Recast Funds Transfer Regulation 2 (Recast EU FTR2)) and the European Banking Authority’s (EBA) Travel Rule Guidelines, applicable from 30 December 2024. It provides practical guidance on tackling key challenges for CASPs such as self-hosted addresses and a lack of standardised messaging infrastructure. Background On 20 July 2021, the Commission presented an ambitious package of legislative proposals to strengthen the EU’s anti-money laundering (AML) and countering the financing of terrorism (CTF) rules. The aim of this AML package was to improve the detection of suspicious transactions and activities, and close loopholes used by criminals to launder illicit proceeds or finance terrorist activities through the financial system. The AML package consists of: • Regulation (EU) 2024/1624 on the prevention of the use of the financial system for the purposes of money laundering (ML) or terrorist financing (TF) (AML Regulation, AMLR) • Directive (EU) 2024/1640 on the

This Practice Note examines the EU’s Recast Second Wire Transfer Regulation (EU) 2023/1113 (Recast WTR2) on information accompanying transfers of funds and certain cryptoassets. Also known as the Recast Second Funds Transfer Regulation (Recast FTR2), it applies from 30 December 2024. Recast WTR2 is a key component of the EU’s anti-money laundering (AML) and counter-terrorist financing (CTF) regime and is also fundamental to the EU’s regulatory framework for payments and cryptoassets. The Recast WTR2 recasts and replaces the Second Wire Transfer Regulation (EU) 2015/847 (EU WTR2) in order to align with updated international standards published by the Financial Action Task Force (FATF), the global AML/CTF regulation-setting body. The information sharing standard for fund transfers, known as the ‘Travel Rule’, as reflected by Recast WTR2, specifies which information on payers and payees needs to accompany a funds transfer, in any currency, for the purposes of preventing, detecting and investigating money laundering and terrorist financing (ML/TF), where at least one of the payment service providers (PSPs) involved in the transfer of funds

ARCHIVED: This Practice Note has been archived and is not maintained. Title Regulation (EC) 1005/2009 of the European Parliament and of the Council of 16 September 2009 on substances that deplete the ozone layer (recast) (EU ODS Regulation) Entry into force 20 November 2009; but it applied from 1 January 2010 (Article 31) Status Directly applicable (no transposition deadline) Amendments See: Eur-lex linked documents. Subject Protection of the ozone layer What are ozone-depleting substances? Ozone-depleting substances (ODS) are man-made chemicals that cause damage to the stratospheric ozone layer, which protects the earth from harmful ultraviolet radiation. They include chlorofluorocarbons (CFCs), halons, hydrochlorofluorocarbons (HCFCs), carbon tetrachloride and methyl bromide. ODS have been used in refrigerators, air conditioners, fire extinguishers, aerosol propellants, solvents and blowing agents for insulation foams. Background to the EU ODS Regulation The EU is a party to the 1985 Vienna Convention for the Protection of the Ozone Layer and the 1987 Montreal Protocol on Substances

ARCHIVED: This Practice Note has been archived and is not maintained. Title Regulation (EU) No 517/2014 of the European Parliament and of the Council of 16 April 2014 on fluorinated greenhouse gases and repealing Regulation (EC) No 842/2006 Entry into force 9 June 2014 but applies from 1 January 2015 Status Directly applicable (no transposition deadline) Amendments See EUR-Lex linked documents Subject Fluorinated greenhouse gases, air quality EU legislation to control fluorinated greenhouse gases The EU has adopted two legislative acts to control emissions from F-gases: • the mobile air-conditioning systems (MAC) Directive 2006/40/EC, which prohibits the use of F-gases with a global warming potential of more than 150 times greater than carbon dioxide in new types of cars and vans introduced from 2011 and in all new cars and vans produced from 2017, and • Regulation (EU) No 517/2014 of the European Parliament and of the Council of 16 April 2014 on fluorinated greenhouse gases (the EU F-gas Regulation), which

Scope of this Practice Note This Practice Note discusses the EU regulation of crowdfunding platforms from a financial services perspective contained in Regulation (EU) 2020/1503 (the ECSP Regulation) . It discusses the background actions taken by EU institutions in this area and the reaction of the UK government. It also describes the subordinate level 2 measures required to be adopted by the European Commission under PSD2 and provides an overview of the level 3 measures published by the European Securities and Markets Association (ESMA). This Practice Note also touches on the different types of crowdfunding that fall inside and out of the scope of regulation, which is discussed further in Practice Note: The UK regulation of crowdfunding platforms—essentials. Types of crowdfunding There are three broad types of crowdfunding, each distinguishable by the return for the funder: • Investment model—individuals make investments in return for a share in the profits or revenue generated by the company/project • Lending model—individuals lend money to a company or project in

ARCHIVED: This Practice Note has been archived and is not maintained. Key information EU Waste Shipments Regulation Title Regulation (EC) 1013/2006 of the European Parliament and of the Council of 14 June 2006 on shipments of waste (EU Waste Shipments Regulation). Entry into force 15 July 2006 Applicable from 12 July 2007 Amendments See Eur-Lex document information. Subject Waste shipments; Waste imports; Waste exports Purpose of the Regulation Regulation (EC) 1013/2006 (the EU Waste Shipments Regulation) was designed to strengthen, simplify and spell out control procedures for waste shipments to reduce the risk of shipments of uncontrolled waste. It incorporated into EU legislation the EU’s obligations under the Basel Convention of 22 March 1989 on the control of transboundary movements of hazardous wastes and their disposal and also transposes the provisions of the Organisation for Economic Cooperation and Development (OECD) Decision of the Council on the Control of Transboundary Movements of Wastes Destined for Recovery Operations (OECD/LEGAL/0266). The EU Waste

Key information EU Waste Shipments Regulation Title Regulation (EU) 2024/1157 of the European Parliament and of the Council of 11 April 2024 on shipments of waste, amending Regulation (EU) 1257/2013 and Regulation (EU) 2020/1056 and repealing Regulation (EC) 1013/2006 (EU Waste Shipments Regulation) Entry into force 20 May 2024 Applicable from 21 May 2026, save for the following (as listed in Article 86):—Article 83(4)-(6) (on amendments to Regulation (EU) 2020/1056 on electronic freight transport information): Applicable from 20 August 2020—Articles 2(2)(i) (on the exemption for ships flying EU flags); Articles 7(10), 11(5), 14(3), 15(6), 18(15), 27(2) and (5), 29(3) and (6), 51(7), 61(7), and Articles 79–81 (all of which empower the Commission to adopt supplemental legislation); Article 31 (on Member States’ option to enter into bilateral border-area agreements); Articles 41 to 43 (on the establishment of the list of non-OECD countries to which exports of waste are authorised); Article 45 (on the Commission’s monitoring of exports to OECD countries), Article 66 (establishing a waste shipment enforcement group); Article 82 (making

Key elements and objectives Regulation (EU) 2023/1115 (the EU Deforestation Regulation, or EUDR) was published in the Official Journal of the European Union on 9 June 2023, with the aim of addressing the issues of deforestation and forest degradation. The EUDR aims to regulate the expanding agricultural territories used for the cultivation of forest-risk commodities such as soya, cattle, palm oil, wood, cocoa, coffee, and rubber, and certain specified derived products, such as chocolate, printed paper and furniture. Given the EU’s major economic influence, and rates of consumption and production of commodities related to deforestation and forest degradation, it bears a substantial responsibility in this regard. In enacting the EUDR, the EU sought to recognise this responsibility and aspires to assume a pioneering role in resolving these issues. The main purposes of the EUDR are to: • restrict the sale of commodities and products which contribute towards deforestation and forest-degradation • address deforestation and forest degradation

EU CRA Regulation—background The Credit Rating Agencies Regulation (EC) 1060/2009 (the EU CRA Regulation) is the core EU legislation relating to credit rating agencies (CRAs) and credit ratings. It was developed to address issues relating to CRAs that became apparent in the financial crisis of 2007/08. It was based on the standards prescribed in the Code of Conduct Fundamentals for CRAs (IOSCO CRA Code) published by the International Organization of Securities Commissions (IOSCO). The IOSCO CRA Code of Conduct was most recently revised by IOSCO in March 2015 (Code of Conduct Fundamentals for Credit Rating Agencies Final Report March 2015), see Practice Note: Credit rating agencies—international standards for further information. The EU CRA Regulation was subsequently amended by Regulation (EU) 513/2011 (EU CRA II Regulation) and Regulation (EU) 462/2013 (EU CRA III Regulation). The EU CRA II Regulation transferred responsibility for the supervision of EU CRAs to the European Securities and Markets Authority (ESMA). Key definitions Credit ratings Credit rating is defined as an opinion regarding the creditworthiness of: • an entity, a debt

This Practice Note provides an outline of the Renewable Energy Directive (EU) 2018/2001 (RED II) which establishes a common framework for the promotion of energy from renewable sources in the EU. RED II was substantially amended in 2023 as part of the European Green Deal’s ‘Fit for 55’ package, and now sets a binding EU-level target of 42.5% for the overall share of energy from renewable sources in the EU's gross final consumption of energy by 2030. This Practice Note provides an overview of the core requirements of RED II (as amended), including the EU-level, Member State level, and sectoral renewable energy targets, provisions governing Member State support frameworks, sustainability criteria for energy derived from biomass fuels and renewable fuels of non-biological origin (RFNBOs), and cross-border cooperation measures. Key information RED II Title Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (recast) (RED II) Entry into Force 24 December 2018 Transposition