Featured Product

    EBA Proposes Guidelines for Establishing Intermediate Parent Entities

    January 15, 2021

    EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive. The guidelines specify the methodology to calculate the total value of assets in EU of the third-country groups and clarifies how to monitor this value to meet the intermediate EU parent undertaking requirement. The guidelines apply to EU-authorized credit institutions and investment firms, which are part of third-country groups and third-country branches. The consultation period on these guidelines ends on March 15, 2021.

    The guidelines stipulate that, in accordance with Article 21b of the Capital Requirements Directive, institutions belonging to third-country groups with a total value of assets in EU of the group equal to or greater than EUR 40 billion must establish an intermediate EU parent undertaking. To take into account the fluctuation in the value of assets, these guidelines specify that the total value of assets in EU of the third-country group should be calculated as an average over the last four quarters. Institutions belonging to third-country groups should monitor the total value of assets in EU on a quarterly basis and communicate the outcomes to relevant competent authorities. In addition, to meet the intermediate EU parent undertaking requirement in a timely manner, they should apply a forward-looking approach by assessing, at least annually, whether the threshold is expected to be breached within the three-year horizon, based on the strategic planning of the third-country group and the projections of assets.

    The guidelines also cover certain procedural aspects related to the monitoring of the threshold by competent authorities and the establishment of the intermediate EU parent undertaking, where necessary. The guidelines clarify that the notifications are to be provided to EBA on an annual basis. For the purpose of both the quarterly assessments and the annual forward-looking monitoring, institutions and branches belonging to a third-country group should exchange all the necessary information with each other. In addition, certain exceptional situations are specified where competent authorities may specify appropriate timelines for the establishment of an intermediate EU parent undertaking, no longer than up to two years from reaching the threshold. Relevant competent authorities should coordinate and take necessary measures to ensure adequate implementation of the intermediate EU parent undertaking requirement.

     

    Related Links

    Comment Due Date: March 15, 2021

    Keywords: Europe, EU, Banking, Third Country Institutions, CRR, CRD, Intermediate Parent Undertakings, IPU, Reporting, Basel, EBA

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    HKMA Announces Launch of Data Repository on Sustainable Finance

    The Hong Kong Monetary Authority (HKMA) announced that the Green and Sustainable Finance (GSF) Cross-Agency Steering Group has launched the information and data repositories and outlined the progress made in advancing the development of green and sustainable finance in Hong Kong.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    NGFS Report on Integration of G-Cubed Model into NGFS Scenarios

    The Network for Greening the Financial System (NGFS) published a report that explores the feasibility of integrating the G-Cubed general equilibrium model into the NGFS suite of models.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8301