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

    EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis

    The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.

    November 28, 2023 WebPage Regulatory News
    News

    EBA Mulls Inclusion of Environmental & Social Risks to Pillar 1 Rules

    The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.

    October 31, 2023 WebPage Regulatory News
    News

    BCBS Consults on Disclosure of Crypto-Asset Exposures of Banks

    As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.

    October 19, 2023 WebPage Regulatory News
    News

    BCBS and EBA Publish Results of Basel III Monitoring Exercise

    The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.

    October 18, 2023 WebPage Regulatory News
    News

    PRA Updates Timeline for Final Basel III Rules, Issues Other Updates

    The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.

    October 18, 2023 WebPage Regulatory News
    News

    US Treasury Sets Out Principles for Net-Zero Financing

    The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.

    October 17, 2023 WebPage Regulatory News
    News

    EC Launches Survey on G7 Principles on Generative AI

    The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.

    October 14, 2023 WebPage Regulatory News
    News

    ISSB Sustainability Standards Expected to Become Global Baseline

    The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.

    September 18, 2023 WebPage Regulatory News
    News

    IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance

    Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.

    September 18, 2023 WebPage Regulatory News
    News

    BCBS Assesses NSFR and Large Exposures Rules in US

    The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.

    September 14, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8938