EC Issues Evaluation Roadmap for EU Reporting Requirements
EC issued an evaluation roadmap for a fitness check of the EU reporting requirements in the financial sector. EC is conducting this fitness check to analyze the shortfalls associated with supervisory reporting. The planned start date for this is the fourth quarter of 2017 while the planned end date is the fourth quarter of 2018 (representing the indicative planning period).
The assessment looks at whether the reporting requirements are meeting their objectives (effectiveness, relevance, EU added value), whether the different reporting frameworks are consistent with one another (coherence), and whether the cost and burden of the reporting obligations is reasonable and proportionate (efficiency). The results of the assessment will identify potential areas where compliance cost and burden stemming from the reporting obligations could be reduced (for example by streamlining and simplifying them) without compromising the financial stability, market integrity, and consumer protection objectives of these obligations. The assessment will look at several pieces of legislation in conjunction. However, due to the significant number of legislative acts and corresponding reporting requirements involved, the present assessment will focus on the legislative acts that contain requirements to report, for supervisory purposes, data in a structured format. The assessment is limited to primary (Level 1) legislation, with a more in-depth look at certain products (for example, derivatives) where a more granular approach to reporting is used.
The assessment is being conducted in parallel with the Financial Data Standardization (FDS) project, which aims to map all existing supervisory reporting requirements down to the data element level with the aim of identifying overlaps and inconsistencies. The FDS project also aims to explore ways in which innovative technology and harmonized data definitions could be used to optimize supervisory reporting requirements without compromising their objectives. The results, both interim and final, of the first phase of the FDS project will, therefore, directly feed into this assessment of the reporting requirements as they become available. The fitness check will incorporate feedback and data mainly, but not exclusively, from the following sources:
- The public consultation to be held as part of the assessment.
- The Call for Evidence exercise, the results of which are summarized in a Commission Communication of November 23, 2016 (COM(2016) 855 final).
- The review of the European Markets Infrastructure Regulation (EMIR), the results of which were published in a Commission Report of November 23, 2016 (COM(2016) 857 final).
- Any other public consultations or reviews of relevant legislative acts in the financial sector.
- The Financial Data Standardization Project, which is already generating further information on the level of overlaps and inconsistencies between the various reporting frameworks.
Related Links
Keywords: Europe, EU, Banking, Securities, Insurance, Evaluation Roadmap, Reporting Requirements, REFIT, Better Regulation, FDS, M4FDS, EC
Previous Article
DNB Issued Banking Newsletter for June 2017Related Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards