ANDORRA Law and Practice Contributed by: Miguel Cases and Laura Nieto, Cases & Lacambra
20 years in terms of complying with corporate social responsibility principles. In terms of ESG requirements, the Andorran Banking Association published a report in 2020 in order to promote sustainable finance. ESG criteria followed by the European Commission, the Paris Agreement (signed by the Principality of Andorra in 2016) and the 2030 agenda of the United Nations are the cornerstones of sustaina - bility, and the Principality of Andorra undertakes to adopt and implement them. All of these embryonic steps have materialised in specific actions carried out by both the Andorran government and banking entities. The most rele - vant action has been the first international global debt issuance programme of up to EUR1.2 bil - lion and the issue of EUR500 million sustainable notes under this programme by the Andorran government. The development of investment products based on social responsibility criteria is also a premise for Andorran banking entities. Regulation (EU) 2022/2554 of the European Par - liament and of the Council of 14 December 2022 on digital operational resilience for the financial sector has not been incorporated into the Andor - ran legal system, as it is not provided for in any annex to the monetary agreement entered into between Andorra and the European Union. However, in terms of cybersecurity, the Andor - ran government promoted the adoption of Law 22/2022, of 9 June, on measures for the security of networks and information systems. This law establishes a set of specific regulatory require - ments for banks in terms of digital risks. Banks 10. DORA 10.1 DORA Requirements
are required to identify themselves as a critical or significant institution. Likewise, as essential institutions, banks must implement measures to manage the risks associated with the security of critical infrastructure.
11. Horizon Scanning 11.1 Regulatory Developments
Andorran banking entities continuously monitor the most up-to-date, significant developments in banking regulation. On 24 November 2022, Law 35/2022, modifying former Law 8/2013, of 9 May, on the organisa - tional requirements and operating conditions of the operational entities of the financial system, investor protection, abuse of markets and finan - cial guarantee agreements (now Law 7/2024), was approved to implement EMIR. Also noteworthy is the introduction of MiFID II in Andorra through Law 7/2024 (except for the reverse solicitation scheme applicable to third countries) and the conclusion of the negotiation of the Association Agreement between Andorra and the European Union (subject to a referen - dum in 2025), which will challenge the current paradigm in the provision of financial and invest - ment services. At present, Andorran banking entities face a twofold challenge: • the regulatory challenge; and • technological innovation and digital transfor - mation. As a consequence, the banking industry is fac - ing a substantive transformation of its activity because of the need to renew the provision of its
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