MFSA published a circular on submission of Remuneration Benchmarking and High Earners data to MFSA and updated certain reporting modules as part of the common reporting (COREP) and financial reporting (FINREP) frameworks under the Capital Requirements Regulation (CRR) and the implementing technical standards on supervisory reporting (EU Regulation 680/2014). The updated modules are part of the EBA framework versions 2.10 and 3.0. MFSA also updated the guidelines to the Capital Requirements Directive (CRD IV) supervisory reporting requirements for credit institutions and foreign bank branches. Also updated are the guidelines for credit institutions and branches to upload and review supervisory reporting data through LH Portal, along with the remittance timetable have been updated.
For credit institutions, the updated modules under COREP are related to own funds and own funds requirements (including immovable property losses), leverage, large exposures and concentration risk, and liquidity modules (including LCR DA, NSFR, and ALMM for additional liquidity monitoring metrics). For foreign bank branches, the COREP module for immovable property losses (module OF) has been updated. The updated FINREP modules include those on non-performing loans (NPLs) and forbearance, asset encumbrance, and remuneration for high earners for both credit institutions and foreign bank branches. Additionally, for credit institutions, MFSA updated FINREP modules on identification of global systemically important institutions or G-SIIs, specific reporting requirements for market risk (under the EU Regulation 2021/453), and remuneration benchmarking. Submission of data by credit institutions to MFSA shall be in line with the reporting dates available in the remittance timetable. The updated modules are applicable from the reference date June 2021, with certain exceptions: module on specific reporting requirements for market risk is applicable from the reference date September 2021 while modules on remuneration for benchmarking and remuneration for high earners are applicable from the reference date December 2020.
MFSA also published a circular that provides detailed information to institutions on developments with respect to the submission of Remuneration Benchmarking and High Earners data to MFSA in line with the EBA integration of these data requirements into the supervisory reporting taxonomy. Going forward, from the December 31, 2020 reference date, remuneration reporting data will be required to be submitted to MFSA in both XBRL and Excel formats, similar to the supervisory reporting modules (FINREP/COREP). Institutions will be required to submit data through the LH Portal. Institutions are reminded to follow all the provisions of the EBA guidelines on the remuneration benchmarking exercise and data collection exercise regarding high earners in reporting remuneration data to MFSA.
Keywords: Europe, Malta, Banking, COREP, FINREP, LH Portal, Reporting, Remuneration, CRR, Basel, MFSA, Framework 2.10, Framework 3.0, MFSA
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
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