EBA published its opinion on the design and calibration of a new prudential framework for investment firms. The EBA opinion is accompanied by a report, which provides the underlying rationale for each recommendation, and a detailed impact assessment based on the quantitative impact studies conducted by EBA.
The opinion includes a series of recommendations for developing a single and harmonized set of requirements that are reasonably simple, proportionate, and relevant to the nature of investment firms authorized to provide MiFID services and activities. It covers the design and calibration of capital and liquidity requirements, consolidated supervision, reporting requirements, the suitability of the proposed framework for commodity derivatives firms, and the need of macro-prudential tools. In the context of proportionality, this opinion includes recommendations for the introduction of very simple prudential requirements for small investment firms that provide limited services or activities. Further recommendations are provided on the applicability of the remuneration requirements and corporate governance rules to investment firms laid down in the CRD and CRR.
This opinion is in response to the EC's call for advice on June 13, 2016 on the design of a new prudential framework for those MiFID investment firms for which the current prudential regime of the Capital Requirements Directive (CRD) and Capital Requirements Regulation (CRR) is not appropriate. The new framework is specifically tailored to the needs of investment firms' different business models and inherent risks.
Keywords: Europe, EU, Securities, New Prudential Framework, CRR, CRD, Proportionality, EBA
Previous ArticlePRA Updates SS35/15 on Guidelines for Completing MLAR
HKMA announced the publication of a report on fintech adoption and innovation in the banking industry in Hong Kong.
BIS published a working paper that examines the drivers of cyber risk, especially in context of the cloud services.
ECB launched consultation on a guide specifying how the Banking Supervision expects banks to consider climate-related and environmental risks in their governance and risk management frameworks and when formulating and implementing their business strategy.
ECB published an opinion (CON/2020/16) on amendments to the prudential framework in EU in response to the COVID-19 pandemic.
EBA published a report that examines the interlinkages between recovery and resolution planning under the Bank Recovery and Resolution Directive (BRRD).
SRB published the final Minimum Requirements for Own Funds and Eligible Liabilities (MREL) policy under the Banking Package.
EIOPA published its risk dashboard based on Solvency II data from the fourth quarter of 2019.
MNB published a statement on loan payments post the announced moratorium, in addition to a set of new questions and answers (Q&A) on supervisory measures and requirements announced amid COVID-19 pandemic.
EBA updated the Single Rulebook question and answer (Q&A) tool for banks.
US Agencies (FDIC, FED, and OCC) published an interim final rule that temporarily revises the supplementary leverage ratio calculation for depository institutions.