ALFI responds to the European Commission Call for Evidence on the Simplification for the digital package and omnibus

On 14 October 2025, ALFI responds to the European Commission’s Call for Evidence on Simplification for the digital package and omnibus.

The Association of the Luxembourg Fund Industry (ALFI), responding to this call for evidence from the perspective of investment funds managers and fund management companies, is providing comments, proposing alignments between regulatory requirements and clarifications, as well as raising some concerns to be considered as the views of the Luxembourg investment fund industry, in a segment focused on cross-border distribution within the European Union and globally.

ALFI welcomes the initiative from the Commission to simplify and streamline the Digital Regulatory framework.

Meanwhile, ALFI’s main advocacy points in this call for evidence are as follow:

1. Cyber Resilience Act: financial entities in scope of DORA should be excluded.
2. Regulatory enforceable standard set of contractual conditions, to reduce the bargaining power of third-party providers against their financial entity clients
3. Register of Information;
   a. Adjustments to the scope of registers of ICT Third-party service providers to focus only on critical and important functions
   b. Unicity of register of information and unique reporting, at local or consolidated level
   c. Provision of Template
   d. Single source of guidance
4. Incident reporting classification review, to focus on incidents of critical relevance
5. Application of the principle of proportionality, to exclude from scope smaller-size IFMs (already complying with stringent sectoral regulations), ICT providers not supporting CIFs and lower layers of subcontracting.

While we appreciate the purpose of the Digital Operational Resilience Act to ensure resilience in the financial sector and avoid any incident of systemic impact in the industry, we would like to reiterate that governance and oversight on delegated activities are already covered, to a certain extent, in the sectorial regulations applied to the financial sector and the investment fund industry in particular (e.g. AIFMD II and UCITS V). In view of the potential overlap with existing regulatory requirements and the existing governance and oversight requirements therein, we would consider that particular care is necessary to avoid diverging requirements.

The complete response to the call for evidence is available here.