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 Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance for New Prudential Standard on Remuneration

    The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.

    October 18, 2021 WebPage Regulatory News
    News

    OCC Updated LIBOR Self-Assessment Tool for Banks

    The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).

    October 18, 2021 WebPage Regulatory News
    News

    TCFD Updates Guidance for Financial Disclosures on Climate Risk

    The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    October 14, 2021 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.

    October 14, 2021 WebPage Regulatory News
    News

    ACPR Implements Updates Related to DPM Version 3.1

    The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.

    October 14, 2021 WebPage Regulatory News
    News

    EBA Note Examines Transition Risks of Benchmark Rates

    The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.

    October 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7571