Regulatory Alerts2026-04-16
Added · Updated
Commission Delegated Regulation (EU) 2026/849 supplementing Regulation (EU) No 575/2013 with regulatory technical standards for equivalent legal mechanisms ensuring timely completion of residential property under construction
The European Commission adopted Delegated Regulation (EU) 2026/849, establishing regulatory technical standards for equivalent legal mechanisms that ensure the timely completion of residential property under construction, supplementing Regulation (EU) No 575/2013. This regulation mandates that completion guarantees be required by national law and provided by authorized credit institutions or insurance undertakings, with a risk weight not exceeding 30% for direct unsecured exposure to the provider. It prohibits protection providers from unilaterally increasing costs, cancelling, or reducing the duration or amount of the guarantee, and requires them to finance remaining construction costs or repay outstanding loan amounts if completion is no longer ensured. These provisions apply to lending institutions, obligors, and protection providers, including specific rules for intra-group guarantees and the conversion of completion guarantees into repayment guarantees.