#9 Autumn 2026

IVASS is still to issue the final regulation on permissible assets and investment restrictions for unit and index linked products, as well as its views on biometric risk requirements – despite two consultation rounds (carried out in 2022 and 2024) and feedback received from the industry, including Utmost – with no official timeline nor any expectations now on the possible issuance date.

The 2026 Social Security Financing Act introduces an increase in social charges on certain types of capital income, notably through a rise in CSG from 9.2% to 10.6%, bringing total social levies up to 18.6% and increasing the overall flat tax burden on affected investment income. However, this increase does not apply uniformly: key wrappers such as life insurance are effectively “spared”, continuing to benefit from their existing social contribution framework (typically 17.2%), thereby reinforcing their relative attractiveness in a more punitive environment for direct holdings.

• Commissions or remuneration received in connection with investment or disinvestment transactions between the investment links available under an arbitration mandate within a life insurance policy have been prohibited since 1 January 2026.
• In the context of discretionary portfolio management for third parties, asset managers will be prohibited from charging fees in connection with buy or sell transactions, first for new mandates from 1 January 2027, and then for all mandates from 1 January 2028.

• The Government borrowing interest rate as of 30 November 2025 set at 2.55%, which brings an effective yield tax at the level of 1.065% ((2.55% + 1%) x 30%).
• The yield tax is applied on life insurance policies on the value as of 1 January 2026. The yield tax is also applied in full on additional premiums paid the first 6 months of the year and at half rate on premiums paid the last 6 months of the year.
• Please note, non-Swedish withholding tax paid within a life insurance portfolio may be set off against the yield tax and Swedish withholding tax may be fully recovered.
• Amount in a life insurance policy or on an ISK account exempted from yield tax increased to SEK 300,000 for 2026 (previous exempted amount of SEK 150,000).
• Exemption is a tax incentive by the Government to increase savings in Sweden. Primarily to benefit retail clients but will apply to all life insurance policies and ISK accounts.

• The main change in this document is that the applicable “general interest conditions” (condições fundadas em razões de interesse geral) — which were previously available only on the ASF’s website — will now be formally enshrined in a binding regulatory instrument, with the express purpose of reinforcing transparency and legal certainty.
• This is therefore primarily a formalisation exercise rather than the introduction of entirely new substantive obligations, though the regulatory formalisation of these conditions carries significant practical importance for EU insurers operating in Portugal.

Conditions Applicable to Branches and FOS Operations
The draft regulation, in its Article 3, expressly identifies certain Portuguese statutory provisions as “general interest conditions” that must be observed by EU insurers regardless of their home Member State rules. These include, among others:

• Provisions of absolute and relative mandatory nature under the Portuguese Insurance Contract Law (Decree-Law No. 72/2008, of 16 April, “DL 72/2008”);
• Consumer protection rules, in respect to what is not already safeguarded by the rules applicable in the insurer’s home Member State;
• Mandatory rules on distance selling and unfair commercial practices;
• Third-party liability insurance rules, AML/CFT requirements, and anti-discrimination rules.

Specific Relevance: Article 54 of the Insurance Contract Law
Of particular relevance to our operations is the express inclusion, in the draft regulation, of provisions of absolute and relative mandatory nature. This directly encompasses the regime established by Article 54 of DL 72/2008, which governs the permitted means of payment for insurance premiums. Under this provision, insurance premiums may only be paid by one of the following means: cash, bank cheque, bank transfer or postal order, credit or debit card, or other electronic payment methods. This is an absolute mandatory provision — meaning that it cannot be derogated from by contractual agreement — and the ASF now expressly identifies it as a “general interest condition” binding upon EU insurers operating in Portugal, whether through a branch or under the freedom to provide services.

• Published in the EU Official Journal on 12 July 2024, the AI Act classifies AI systems based on their potential risk, banning those with unacceptable risk and regulating high-risk systems.
• Applies to all organisations that develop, use, distribute, or import AI systems in the EU, even if they are not EU-based.
• Legal application to be phased in over the next three years, with most provisions taking effect on 2 August 2026.
• Digital Omnibus published 19 November 2025 contains proposal for Regulation amending the AI Act but these do not materially affect the overall effect of AI Act.
• Consultation on draft guidelines for classification of high-risk AI systems under the act published 19 May.
• All systems high risk where intended to perform risk assessment and pricing in life and health insurance (IBIPS not included in this definition).

Article 6 proposes to make eligibility for the French life insurance tax regime conditional on: (1) premiums paid from 1 October 2026 being paid in cash; (2) unit-linked assets having characteristics similar to those eligible under French insurance law; and (3) dedicated funds excluding certain assets linked to the policyholder, insured person, beneficiaries, specified family members or related entities. Failure to satisfy these conditions could affect income tax treatment and taxation on death. Subject to parliamentary approval and possible amendments.

• This package includes a directive outlining the mechanisms member states must implement, a regulation establishing
  the Authority for AML and CTF, and a significant regulation to replace the current Fifth AML Directive.
• The new regulation aims to address inconsistencies in the local application of the directive by introducing directly
  applicable rules across the EU.
• Currently 3 open consultations:
  • Draft Guidelines on ongoing monitoring of business relationships
  • Draft Guidelines on business-wide risk assessment
  • Draft RTS on group-wide minimum requirements and additional measures for subsidiaries and branches in third
    countries.

• RIS aims to boost consumer protection and confidence in the financial sector through enhanced disclosure requirements and financial promotion rules, for example, to encourage customers to invest in financial products across the Union. It has two main components:
  • The Omnibus Directive, which significantly amends IDD, MiFID II, UCITS, AIFMD, and Solvency II.
  • Amendments to the PRIIPs Level One Regulation, paving the way for new technical standards.
• The text is expected to be formally adopted by November 2026 before official publication.
• Expected to be in force July 2029 but final dates are yet to be confirmed.

• On 20 November 2025 the European Commission adopted its final proposal for amendments to SFDR.
• Aim to simplify rules and align disclosures with other EU sustainability frameworks.
• Key changes include:
  • New product categorization regime.
  • Remove portfolio management and investment advice from scope of SFDR.
  • Remove entity level requirements for PAI reporting and disclosures on how sustainability risks are considered in
    remuneration policies
• Parliament, Council and Commission aiming to reach political agreement by end 2026.
• Changes are expected to come in effect late-2028 or early 2029.

• Malaysia clarified taxation of foreign income in 2022–2024 guidelines.
• Exemption extended to 31 December 2036 (effective 1 January 2027).
• Applies to resident individuals on all classes of foreign-sourced income (excluding partnership income), provided such income is taxed abroad.

• Incentives first introduced in 2019 – 2021, expanded in 2022 – 2024 to attract family offices.
• Changes to economic criteria for sections 13D, 13O, and 13U to take effect from January 2025.
• Extension of tax incentives for qualifying funds until end of 2029.
• Inclusion of Limited Partnerships under section 13O scheme.

• Revised economic criteria for qualifying funds, including potential introduction of a minimum fund size and
  increased business spending commitments

• Taiwan introduced CFC rules in 2023, expanded in 2024 to cover offshore trusts.
• MOF added Q&A Q66 clarifying PPLI treatment under CFC rules.
• Where individuals transfer CFC shares to an insurer and retain economic control, the CFC is treated as directly held.
• Reinforces substance-over-form to prevent CFC tax avoidance.

• Builds on Hong Kong’s 2021 fund re-domiciliation regime and 2024 proposals for corporate re-domiciliation.
• Amendment Ordinance gazetted 23 May 2025
• Eligible companies must meet jurisdictional recognition, minimum incorporation period, and creditor protection requirements.
• Retention of original company name and BR number; profits tax transitional relief available.

• Hong Kong launched family office concessions in 2023–2024 to attract UHNWIs.
• Ongoing measurement of the Capital Investment Entrant Scheme (CIES) and Family-owned Investment Holding Vehicles (FIHVs) introduced in March 2024

• Thailand shifted from deferral-based taxation to remittance-based taxation in 2024.
• Foreign income taxation effective from 1 January 2024. Foreign income brought into Thailand will be taxed in the year it is brought in, regardless of when earned. This eliminates the previous tax deferral strategy.

• Reform proposal follows strict 2024 remittance taxation rules.
• Draft royal decree (May 2025) proposes that foreign income remitted within the same or next calendar year after it’s earned (1–2 year “safe window”), will be exempt.
• Encourages timely capital return; draft still pending enactment, likely in 2026.

• Indonesia has tightened public float and shareholder disclosure rules.
• Listed companies must now report any shareholder crossing the 1% threshold (down from 5%).
• Designed to improve market integrity, insider trading monitoring, and UBO visibility.
• Effective March 2026 to align with MSCI governance standards.

• The 2026–27 Federal Budget was delivered on 12 May 2026 and includes significant reforms to taxation of investments, including changes to CGT treatment from 1 July 2027.
• From 1 July 2027, the 50% CGT discount is proposed to be replaced by cost base indexation and a 30% minimum tax on net capital gains for individuals, trusts and partnerships.

• Bill gazetted on 12 June 2026 to enhance preferential tax regimes for privately offered funds, FIHVs managed by eligible single-family offices, and carried interest.
• Expands the definition of fund and the scope of qualifying investments, including loans, overseas immovable property, digital assets, precious metals and specified commodities.
• Strengthens Hong Kong’s positioning as a flexible hub for UHNWIs.

• Clarifies the IIT treatment of offshore trusts and certain foreign holding structures involving PRC tax residents.
• Introduces enhanced reporting and compliance requirements throughout the lifecycle of offshore trust arrangements.
  Includes a transitional voluntary disclosure period for historic offshore trust positions.
• May require existing offshore wealth and succession structures to be reviewed.
• Certain regulated financial products are excluded from the new rules.

FCA Consultation Paper CP26/10 ‘Simplifying the Pensions and Investment Advice Rules’ asks for views on simplifying advice rules and replacing annual suitability requirements with periodic suitability reviews.

Proposes consolidating rules to remove distinctions between advice on Markets in Financial Instruments Directive II scope products, insurance-based investment products and other life policies and pensions.

Also contains discussion chapter inviting initial feedback on the continued payment of pre- RDR legacy trail commission, including whether it should be ended, allowed to continue or the current rules for its payment modified.

Policy statement expected in Q4 2026. consultation closed 22 May 2026.

• FCA have released final rules for new consumer disclosure regime
• Term ‘PRIIP’ being replaced with ‘consumer composite investments’.
• PRIIPS KID and UCITS KIID replaced with a product summary.
• Manufacturers will need to make underlying information available to distributors in a machine-readable format.
• Flexible format allowing for more information to be provided on top of that mandated.
• Rules on complaints handing for unauthorised manufacturers and distributors of CCI’s.

• Proposed new rules cover:
  • Due diligence requirements
  • Handling pension scheme money and assets
• Consultation closes 24 August 2026 with made rules to be published in the first half of 2027.

• Proposed changes to rules and non-Handbook guidance to:
• Remove business with non-UK customers from the Duty’s scope.
• Clarify where the Duty applies and where it doesn’t.
• Clarify when and how firms in distribution chains can rely on each other when working together, and how they can apply the Duty more proportionately.
• Explain the interaction between the Duty and other product governance rules.
• New rules expected Q1 2027.

Proposed changes aim to:

• Align pre-sale presentation of costs with CCI rules
• Retain presentation of total costs post-sale whilst giving firms flexibility
• Remove cumulative effect illustrations
• Clearer disclosure of interest rates and fees on cash holdings
• Reduce requirements for business with professional clients
• Apply the same requirements to MiFiD, non-MiFID and IDD business.

• Autumn Budget announced unused pension savings may be included in people’s estates for IHT.
• Despite industry pushback, the pensions minister has stated that there will be no change of approach from the government in this matter.
• Property and Savings rates of tax changed with 2% increase on property and savings rates of income tax –basic rate increased to 22%, higher rate increased to 42% and additional rate increased to 47%. Changes to order of taxation with property income sitting after non-savings income but before savings income. The personal allowance will be deducted against non-savings income prior to property, savings or dividend income.
• Temporary Repatriation Facility rate (for those previously claiming remittance basis) increases from 12% to 15% for final year.

• On 30 June 2026 the FCA published 5 policy statements which form the basis of the new crypto asset regime. The rules
  come into effect October 2027:
  • PS26/9 Admissions and Disclosures (A&D) and Market Abuse Regime for Cryptoassets (MARC)
  • PS26/10 Stablecoin issuance
  • PS26/11 Regulated cryptoasset activities
  • PS26/12 A prudential regime for cryptoasset firms
  • PS26/13 Application of the FCA Handbook for Regulated Cryptoasset activities.
• The FCA has also published consultations on  finalised non-handbook guidance:
  • FG26/9 Non-Handbook Guidance on COREPRU 7: overall risk assessment
  • G26/10 Non-Handbook Guidance on CRYPTOPRU 7: overall risk assessment for CRYPTOPRU firms.
• On 16 September the FCA published PS26/7 Cryptoasset Perimeter Guidance which sets out when cryptoasset activities
  need FCA authorisation.

• Draft legislation bringing ratings providers under remit of FCA. From 29 June 2028 firms will need FCA authorisation to provide certain types of ESG ratings in the UK.
• FCA have published consultation CP25/34 setting out proposed approach to regulation.
• Regime expected to improve transparency and quality of ESG ratings for investments and other types of financial products.
• Goal of supporting better decision making and confidence in the market and support growth in sustainable finance.

• End of the Temporary Repatriation Facility for those previously claiming remittance basis.
• Introduction of The High Value Council Tax Surcharge (HVCTS) – an annual levy on residential properties valued above £2m starting at £2,500 and increasing to a maximum of £7,500 on houses worth £5m and above.

• Changes to pension salary sacrifice rules come into effect. NI payable on contributions above £2,000.