04.06.2020

The European Banking Authority (EBA) launched a public consultation (to run until 4 September 2020) on its first set of technical standards on prudential, reporting, disclosure and remuneration requirements from the Investment Firms Regulation and Directive (IFR/IFD) as outlined in its roadmap. The first consultation paper (CP) on prudential requirements includes three draft regulatory technical standards (RTS) on the reclassification of certain investment firms (IFs) to credit institutions, five draft RTS on capital requirements for IFs at individual level, and one draft RTS on the scope and methods of prudential consolidation for IFs at group level. The second CP on reporting requirements and disclosures, includes draft implementing technical standards (ITS) on the levels of capital, concentration risk, liquidity, the level of activities as well as disclosure of own funds; and draft RTS specifying the information that IFs must provide to enable monitoring of the thresholds that determine whether an IF must apply for authorisation as a credit institution. The third and fourth CPs on remuneration requirements include one draft RTS on the criteria to identify all categories of staff whose professional activities have a material impact on the firm’s risk profile or assets it manages; and one draft RTS specifying the classes of instruments that adequately reflect the credit quality of the IF as a going concern and possible alternative arrangements for the variable remuneration of risk takers.

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