ESAs launched a consultation on draft implementing technical standards on the reporting of intra-group transactions and risk concentration for financial conglomerates subject to supplementary supervision in the EU. The draft technical standards were developed based on the mandate included in the Financial Conglomerates Directive (FICOD). Also published are the draft templates and instructions for the reporting. The consultation ends on August 15, 2019 while the expected implementation period for the proposed changes is approximately one year. The regulation, once published in the Official Journal of European Union, shall apply from January 01, 2020.
The draft implementing technical standards provide the foundation for harmonization of reporting, with a single set of templates, a single embedded dictionary using common definitions, and a single set of instructions to fill in the templates. The implementing technical standards will help the coordinators and other relevant competent authorities to identify relevant issues and exchange information more efficiently, thus reducing costs and fostering a level playing field across financial conglomerates in EU. Furthermore, they will ensure fair competition while reducing regulatory complexity and firms' compliance costs, especially for financial conglomerates operating on a cross-border basis.
Post the end of the consultation, the Joint Committee of ESAs will revise the proposal, taking into account the feedback received. The intra-group transactions that would need to be reported are those significant between:
- Regulated entities of different sectors belonging to the same financial conglomerate
- Regulated entities of the same sector belonging to the same financial conglomerate
- A regulated entity and a non-regulated entity belonging to the same financial conglomerate
- A regulated entity and any natural or legal person linked to the undertakings of the financial conglomerate by close links
Comment Due Date: August 15, 2019
Keywords: Europe, EU, Banking, Insurance, Securities, Reporting, Intra-group Transaction, FICOD, Risk Concentration, Solvency II, CRR, ESAs
Previous ArticleBIS Paper Examines Impact of Low Interest Rates on Bank Activity
The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.
The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.
The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.
The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.
The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.