Featured Product

    EBA Finalizes Standards for Supervisory Cooperation Under IFD

    July 05, 2021

    EBA published the final draft regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in the prudential supervision of investment firms. One final draft sets out the regulatory technical standards on supervisory colleges for investment firm groups, in accordance with the Investment Firms Directive (IFD). The other final draft sets out the regulatory and implementing technical standards on information exchange between competent authorities of home and host member states in accordance with the IFD. These draft standards are part of the phase 2 mandates of the EBA roadmap on investment firms.

    The regulatory standards on colleges of investment firms specify the conditions under which colleges of supervisors exercise their tasks and target the investment firm groups falling under the remit of the IFD. These standards are built on experience gained over the years in the colleges of supervisors of credit institutions and larger and more complex investment firm groups that have been established in accordance with the Capital Requirements Directive (CRD). The standards are structured into specifications on establishment of colleges, functioning of colleges, planning and coordination of supervisory activities in going-concern situations, and planning and coordination of supervisory activities in preparation for, and during, emergency situations. The standards provide a set of criteria to help group supervisors to determine whether the establishment of a college of supervisors is appropriate. The standards also specify the information to be exchanged and cooperation between the authorities to be organized for certain joint activities, such as the Supervisory Review and Evaluation Process (SREP), the ongoing review of the permission to use internal models, and the compliance issues.

    The regulatory and implementing standards on information exchange between the competent authorities of home and host member states complement the standards on colleges of supervisors and address situations where investment firms operate in another member state through branches or the free provision of services, where colleges may not be established. The regulatory technical standards address requirements related to information exchange for investment firms that operate through branches in other member states and that provide services on a cross-border basis in other member state. The implementing technical standards apply in relation to the information specified in the proposed regulatory technical standards. The implementing standards:

    • set out procedures, including the timelines, contact lists and common formats, and templates (included in Annex), for regular exchange of information regarding compliance with own funds, concentration risk and liquidity requirements and regarding findings of supervision of investment firms, linking the frequency of exchanging such information with the outcomes of SREP assessments, where relevant.
    • establish a more expedited procedure for information exchange regarding issues of non-compliance with regulatory requirements and application of supervisory administrative penalties or other administrative measures.
    • set out the procedure for information requests regarding institutions providing services in other member states through the freedom to provide services and for ad hoc information requests.

     

    Related Links

    Keywords: Europe, EU, Banking, Securities, IFD, Investment Firms, CRD, Supervisory Colleges, Regulatory Technical Standards, Implementing Technical Standards, Information Exchange, SREP, Basel, EBA

    Featured Experts
    Related Articles
    News

    APRA Penalizes Heritage Bank for Incorrect Reporting of Capital

    The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.

    November 29, 2021 WebPage Regulatory News
    News

    OSFI Releases Annual Report 2021-2022

    The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.

    November 29, 2021 WebPage Regulatory News
    News

    APRA Finalizes Capital Adequacy Standards for Banks

    The Australian Prudential Regulation Authority (APRA) published, along with a summary of its response to the consultation feedback, an information paper that summarizes the finalized capital framework that is in line with the internationally agreed Basel III requirements for banks.

    November 29, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Seek Comments on Access to Central Clearing and Portability

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued a consultative report focusing on access to central counterparty (CCP) clearing and client-position portability.

    November 29, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance on Management of Climate Change Risks

    The Australian Prudential Regulation Authority (APRA) released the final Prudential Practice Guide on management of climate change financial risks (CPG 229) for banks, insurers, and superannuation trustees.

    November 26, 2021 WebPage Regulatory News
    News

    EBA Publishes Single Rulebook Q&A Updates in November 2021

    The European Banking Authority (EBA) Single Rulebook Question and Answer (Q&A) tool updates for this month include answers to 10 questions.

    November 26, 2021 WebPage Regulatory News
    News

    EC Finalizes Rules on Internal Approaches Benchmarking Exercise

    The European Commission, or EC, finalized the Implementing Regulation 2021/2017 with respect to the benchmark portfolios, reporting templates, and reporting instructions for the supervisory benchmarking of internal approaches for calculating own funds requirements.

    November 26, 2021 WebPage Regulatory News
    News

    EC Proposes New Measures Under Capital Markets Union Package

    The European Commission (EC) has adopted a package of measures related to the Capital Markets Union.

    November 25, 2021 WebPage Regulatory News
    News

    European Council Adopts Position on Digital Finance Package Proposals

    The European Council adopted its position on two proposals that are part of the digital finance package adopted by the European Commission in September 2020, with one of the proposals involving the regulation on markets in crypto-assets (MiCA) and the other involving the Digital Operational Resilience Act (DORA).

    November 25, 2021 WebPage Regulatory News
    News

    PRA Proposes Rulebook Changes; BoE Extends BEEDS Testing Window

    The Prudential Regulation Authority (PRA) is proposing, via the consultation paper CP21/21, to apply group provisions in the Operational Resilience Part of the PRA Rulebook (relevant for the Capital Requirements Regulation or CRR firms) to holding companies.

    November 25, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7740