EBA published the final draft implementing technical standards on information on supervisory approaches and aggregate statistical data for the new prudential requirements that competent authorities will have to disclose publicly for investment firms authorized under the Markets in Financial Instruments Directive (MiFID). The implementing standards, which are part of the Phase 2 mandates of the EBA Roadmap for investment firms regime, are intended 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. Competent authorities will have to start disclosing this information in June 2022.
The Investment Firms Directive and Regulation (IFD and IFR) set out 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 final report on draft standards explains the policy choices of regulatory requirements for the draft implementing technical standards and outlines their legislative basis. The following detailed templates listed in the implementing technical standards are presented in the Annexes, along with instructions:
- Text of laws, regulations, administrative rules, and general guidance adopted in each member state, with specific templates covering the application of the IFD, options and discretions for supervision, remuneration, application of the reporting on financial information (Annex I)
- Options and discretions in the application of the prudential requirements (Annex II)
- Criteria and methodologies of the Supervisory Review and Evaluation Process or SREP (Annex III)
- 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 (Annex IV)
Competent authorities must complete the templates with reference date to December 31 each year and publish them the following year by June 30. EBA is of the view that regulatory requirements ensure a proportionate and technically consistent prudential framework for investment firms.
Keywords: Europe, EU, Banking, Securities, IFD, IFR, MIFID, Implementing Technical Standards, SREP, Disclosures, Investment Firms, Competent Authorities, Options and Discretions, EBA
Previous ArticleHKMA Announces Publication of Stay Rules in Hong Kong Gazette
The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA
The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.
The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.
The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.
In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.
The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.
The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).
EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.