Joint report: Eighth annual meeting of the CETA Financial Services Committee

November 12-13, 2025 (Ottawa)

The eighth annual meeting of the CETA Financial Services Committee (the “Committee”) took place in Ottawa on 12 and 13 November 2025, with some participants joining by video conference. The meeting was co-chaired by the Department of Finance Canada (Finance Canada) and the European Commission’s Directorate General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA). The Committee’s discussions focused on broad themes, namely: international cooperation and the macroeconomic, financial stability and markets outlook, and financial sector regulatory and policy priorities.

Canadian participants included officials from Finance Canada, the Office of the Superintendent of Financial Institutions (OSFI), the Bank of Canada (BOC), the Canada Deposit Insurance Corporation (CDIC) and the Financial Consumer Agency of Canada (FCAC).

EU participants included officials from DG FISMA and European Supervisory Authorities (the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), the European Securities and Markets Authority (ESMA)), the Single Resolution Board (SRB) and the European Central Bank (ECB).

The Committee opened the meeting by emphasising the benefit of close cooperation on financial sector regulatory matters between like-minded jurisdictions, including at multilateral fora. In discussions on the current global macroeconomic, financial stability, and risk outlooks, Parties noted that the global economy had demonstrated resilience during a period of uncertainty, heightened geopolitical tension, and growing downside risks, and that inflation had returned to target levels with measures of core inflation still slightly above target. Parties shared views on key risks to financial stability, including: stretched equity valuations in highly concentrated financial markets which, combined with high leverage, pose a risk of broad asset price revaluation; an uncertain trade environment weighing on corporate credit quality, particularly in trade-exposed market segments; risks to wholesale and retail credit markets; and challenging fiscal outlooks in many economies. Despite these risks, Parties noted that funding and liquidity risks appeared stable at present, and that respective EU and Canadian financial sectors have proven resilient, well capitalized, and profitable.

On banking regulation, Parties provided updates on their respective regulatory and guidance frameworks to implement Basel III reforms, including jurisdiction-specific targeted amendments. Both sides agreed on the importance of global implementation to ensure a level-playing-field and bolster banking sector resilience to shocks. Canada spoke to its Financial Sector Legislative Review, recent announcements on initiatives designed to improve competition in the financial services sector, and OSFI undertaking a review to modernize its regulatory framework. EU participants noted ongoing work to strengthen the Banking Union and reduce administrative burden. Parties also discussed financial sector integrity, innovation and resilience, with the EU providing updates on elements of the Digital Operational Resilience Act (DORA) designed to address cybersecurity risks, and Canada speaking to OSFI’s Integrity and Security Guideline and other efforts to bolster innovation. Parties also updated on respective developments in bank resolution, including EU reforms to its crisis management and deposit insurance (CMDI) framework for small- and medium-sized banks, Canada strengthening disclosure requirements under its deposit insurance by-law, and both sides discussed the outcomes from the International Association of Deposit Insurers (IADI) core principles review.

The EU provided an update on its Savings and Investments Union (SIU) initiative, which is designed to provide EU savers an opportunity to play a more active role in capital markets and EU businesses to benefit from a larger supply of long-term capital to finance investment, serving as an enabler of wider efforts to boost competitiveness of the EU economy. In that respect, the EU referred to the recent publication of its blueprint for savings and investment accounts, its financial literacy strategy and supplementary pensions package. The SIU initiative also includes important measures to remove intra-EU cross-border barriers to further integration of capital market infrastructures, including in the area of supervision, that will be adopted in December 2025.

On insurance regulation, the EU spoke to its six-year Solvency II Review and the recent delegated regulation intended to further support long-term investments, as well as ongoing reflections on insurance guarantee schemes to bolster consumer protection. Canada spoke to recent updates to insurance-related guidelines that help ensure that insurers are properly capitalized, as well as updates to guidelines for sound reinsurance practices, prudential requirements for property and casualty insurers, and recently announced work to mitigate natural disaster risks to financial stability.

Parties exchanged views on multilateral work at the G20, FSB, BCBS, and IPSF to address climate-related financial risks. Voicing shared support for efforts to contemplate such risks via multilateral fora, both sides noted a shift in their respective jurisdictions’ approaches to focus on physical catastrophic risks. The EU spoke to its ongoing efforts to simplify its taxonomy for sustainable activities and disclosure rules, and Canada provided an update on its recently announced Climate Competitiveness Strategy which will include work on taxonomy and disclosure rules. Both sides acknowledged that, while their respective jurisdictions’ pace and approach to this area of work differed to some extent, they were generally like-minded and welcomed ongoing cooperation between the EU and Canada in international fora.

On payments systems, Canada provided an update on initiatives to enhance the regulation and supervision of non-bank payment service providers (PSPs), expand their access to core payments infrastructure, and launch a new fast payments system in 2026. The EU side provided an update on the recently implemented Instant Payment Regulation as well as on further legislative work in the area of payments services, including to address fraud, improve open banking, and increase transparency.

Participants exchanged views on recent developments in the field of anti-money laundering (AML) and combatting the financing of terrorism (CFT). The Canadian side updated on various legislative and regulatory initiatives to strengthen its regime, including the announcement of a new financial crimes agency, coverage of new economic sectors, new supervisory and investigative authorities, and increased monetary penalties. The EU side provided an update on its recently established Anti-Money Laundering Authority (AMLA), which is building up its regulatory authority and capacity to undertake direct supervision in 2028.

The EU and Canada updated each other on recent developments in digital finance, in particular on crypto assets and central bank digital currencies. Canada noted its recently announced intent to regulate stablecoins, and BOC research on the use cases and risks of asset tokenization. The EU spoke to piloting of digital asset markets under Markets in Crypto-Assets (MiCA) regulations, as well as development of the regulatory framework and technical readiness for the digital euro. The parties also shared views on the opportunities and challenges presented by artificial intelligence in the financial sector, with Canada updating on its Financial Industry Forum on AI and noting its consideration of non-financial risks, third-party vulnerabilities, and implications for consumer well-being. The EU updated on its 2024 implementation of the AI Act which covers all economic sectors, noting forthcoming research on financial sector use-cases, risks, and potential barriers to adoption.

On financial consumer-focused initiatives, Canada provided an update on legislation to introduce its consumer-driven banking framework (i.e., open banking) under BOC supervision, as well as its intent to explore cross-sector data sharing. The EU noted that its open finance proposal under the Financial Data Access (FIDA) is under negotiation by the co-legislators, and spoke to Consumer Credit Directive (CCD) protections from usurious terms in payday loans and buy-now-pay-later schemes being implemented in member states by late 2026. FCAC and DG FISMA also exchanged views and agreed on the importance of advancing financial education, inclusion, and literacy, particularly amid an increase in fraud and investment scams, and the EU provided an update on its recently released financial literacy strategy.

Both sides continue to share the view that the CETA Financial Services Committee is an important forum to share knowledge on financial sector regulation and policies and to maintain and deepen the strong bilateral relationship. The next meeting is expected to take place in Spring 2026 in Brussels. In the interim, officials will follow up bilaterally, as appropriate, on topics discussed at this year’s meeting.