EBA Consults on Disclosure Standards Under Investment Firms Directive
EBA is consulting on the implementing technical standards on the new prudential requirements that competent authorities will be required to disclose publicly for all types of investment firms authorized under Markets in Financial Instruments Directive (MiFID). The draft standards, which are part of the phase 2 mandates of the EBA roadmap on investment firms, aim to ensure that the disclosed information is comprehensive and comparable across all member states. The required disclosures cover the text of national rules and guidance, including various options and discretions built into the investment firms regime in EU. The first disclosure date under these draft standards has been set to be June 30, 2022. The consultation period on these standards ends on May 11, 2021.
The Investment Firms Directive (IFD), together with Investment Firms Regulation (IFR), sets up the new prudential framework for investment firms authorized under MiFID. EBA has developed these draft standards according to Article 57(4) of IFD, which mandates EBA to determine the format, structure, content lists, and annual publication date of the information listed in paragraph 1 of Article 57 of that Directive. The information that competent authorities will have to disclose annually covers supervisory approaches and aggregate statistical data on the new prudential requirements for investment firms, particularly the following:
- Text of laws, regulations, administrative rules, and general guidance adopted in each member state
- Options and discretions in the application of the prudential requirements
- Criteria and methodologies of the Supervisory Review and Evaluation Process (SREP)
- Aggregated statistical data on key aspects of the implementation of IFD and IFR in each member state, including the number and nature of supervisory measures taken in accordance with specified articles of IFD
The proposed standards include detailed templates to harmonize the publication of such information and the instructions for filling in the templates are included in each Annex. These templates are to be completed by competent authorities with reference date to December 31 each year and published on the following year by June 30. The first disclosure date under these draft standards has been set to be June 30, 2022. The consultation paper explains the policy choices of regulatory requirements for the draft implementing technical standards and outlines their legislative basis. EBA is of the view that proposed regulatory requirements ensure comparability of the data published by the supervisors and provide the market with transparent and comprehensive information.
Related Links
Comment Due Date: May 11, 2021
Keywords: Europe, EU, Securities, IFD, IFR, MiFiD, Implementing Technical Standards, SREP, Disclosures, Investment Firms, Competent Authorities, Options and Discretions, EBA
Previous Article
PRA Consults on Implementation of Remaining Basel Standards in UKRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
