Featured Product

    EBA Publishes Reporting and Disclosures Framework for Investment Firms

    March 05, 2021

    EBA published a package that includes the final draft implementing technical standards on supervisory reporting and disclosures of investment firms. The disclosure requirements will be applicable from June 26, 2021 while the first reporting reference date is September 2021 for quarterly reports and December 2021 for annual reports. These reporting requirements are a part of the EBA reporting framework 3.1, which is expected to apply from September 2021. EBA will also develop the data point model, XBRL taxonomy, and validation rules based on the final draft implementing technical standards.

    The standards included in this package set out the main aspects of the new reporting framework in relation to the calculation of own funds, levels of minimum capital, concentration risk, liquidity requirements, and the level of activity in respect of small and non-interconnected investment firms. The implementing technical standards propose a different set of templates to cover small and non-interconnected investment firms and to include information that is proportionate to their size and complexity. The accompanying annexes contain reporting templates and instructions for Class 2 and Class 3 investment firms, information about data point model and validation rules, templates and instructions for disclosure of own funds, and reporting templates and instructions for group capital test. Additionally, one template has been included to define the size and level of activity thresholds that will trigger a shift to the reporting requirements into one or the other classification of investment firms (class 2 and class 3). EBA issued a single set of standards with integrated Pillar 3 disclosures and supervisory reporting requirements and standardized formats and definitions with a view to improving consistency between reporting and disclosures requirements, which will facilitate compliance with both requirements.

    The draft implementing technical standards will be submitted to EC for endorsement before being published in the Official Journal of the European Union. The final draft implementing technical standards, which are part of the phase 1 mandates of the EBA roadmap on investment firms, will ensure a proportionate implementation of the new prudential framework for investment firms taking into account the different activities, sizes, and complexity of investments firms. The Investment Firms Prudential Package consists of the Investment Firms Directive (2019/2034 or IFD) and the Regulation (2019/2033 or IFR), which were published in the Official Journal of the European Union on December 05, 2019, entered into force on December 26, 2019, and establish a new prudential framework for investment firms authorized under Markets in Financial Instruments Directive (MiFID). The IFR and IFD package covers small and non-interconnected investment firms (class 3 firms) and other investment firms other than small and non-interconnected investment firms (class 2 firms). IFR requires the development of several pieces of level 2 legislation in to reflect and implement the new requirements for investment firms.

     

    Related Links

    Keywords: Europe, EU, Banking, Securities, IFR, IFD, Implementing Technical Standards, Reporting, Disclosures, Investment Firms, EBA

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BCBS Issues Climate Risk Principles while HKMA Expresses Its Support

    The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8280