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 Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.
The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.
The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.
The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.
The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.
The Australian Prudential Regulation Authority (APRA) updated the list of authorized deposit-taking institutions, granting license to Barclays Bank PLC and Crédit Agricole Corporate and Investment Bank to operate as foreign authorized deposit-taking institutions under the Banking Act 1959.
EU published, in the Official Journal of the European Union, a corrigendum to the Delegated Regulation 2015/35, which supplements Solvency II Directive (2009/138/EC).
The European Banking Authority (EBA) published an Opinion on the scale and impact of de-risking in European Union and the steps that competent authorities should take to tackle unwarranted de-risking.