European Securities and Markets Authority and the European Banking Authority
IFD - SREP - ESMA and EBA publish joint Consultation Paper - 18 November 2021
The European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) have published a joint Consultation Paper (EBA/CP/2021/35 / ESMA35-36-2418) on draft guidelines for common procedures and methodologies for the supervisory review and evaluation process (SREP) under the Investment Firms Directive ((EU) 2019/2034) (IFD).
The draft SREP guidelines set out the process and criteria for the main SREP elements: business models; governance arrangements and firm-wide controls; risks to and adequacy of capital; and liquidity risk and adequacy. The guidelines also cover the proportionate application of a scoring system depending on a firm’s nature, size and activities; the monitoring of key indicators; cross-border application; and the use of supervisory measures.
The consultation will close on 18 February 2022 and a public hearing will be held on 18 January 2022.
ESMA / EBA Consultation Paper (EBA/CP/2021/35 / ESMA35-36-2418)
Webpage
ESMA press release
EBA press release
European Banking Authority
IFR - Pillar 2 requirements - EBA publishes Consultation Paper on draft RTS - 18 November 2021
The European Banking Authority (EBA) has published a Consultation Paper (EBA/CP/2021/34) relating to draft Regulatory Technical Standards (RTS) on the additional own funds requirements (Pillar 2 add-ons) under the Investment Firms Regulation ((EU) 2019/2033) (IFR).
The draft RTS relate to how national competent authorities (NCAs) should measure risk to capital for investment firms where those risks are not covered, or are not covered sufficiently, by parts three or four of the IFR. The draft RTS set out detailed guidance on specific indicative metrics that can be used for measuring these risks, including in relation to materiality and adequacy of capital.
The consultation closes on 18 February 2022 and a public hearing will be held on 18 January 2022.
EBA Consultation Paper EBA/CP/2021/34
Webpage
Press release
