ESAs notify the European Commission about the outcome of the review of the PRIIPs key information document

21 July 2020

The European Supervisory Authorities (ESAs) have informed the European Commission of the outcome of the review conducted by the ESAs of the key information document (KID) for packaged retail and insurance-based investment products (PRIIPs). This follows the ESAs’ consultation paper published on 16 October 2019 on draft regulatory technical standards (RTS) to amend the technical rules on the presentation, content, review and revision of KID (Delegated Regulation (EU) 2017/653).

EBA publishes phase 2 of its technical package on reporting framework 2.10

10 July 2020

The European Banking Authority (EBA) published today a new release of the reporting framework 2.10, providing the technical tools and specifications for the implementation of EBA reporting requirements. The package includes the validation rules, the Data Point Model (DPM) dictionary and XBRL taxonomies.

This package reflects the following reporting changes:

  • The new EBA Guidelines on reporting and disclosure COVID-19 measures (published on 4 of June 2020 here), applicable since 30 June 2020;
  • The updated ITS on Supervisory Benchmarking of internal models (published here), applicable from September/December 2020;
  • Minor amendments to the DPM, validation rules and XBRL taxonomies for Resolution planning reporting as well as reporting on Funding Plans, applicable from December 2020.

The documents covering this technical package are available here and include the following:

  • A set of XML files forming the XBRL taxonomy and a description of the architecture of the XBRL taxonomy;
  • A DPM data dictionary database together with a DPM table layout and data point categorisation;
  • A list of validation rules.

The EBA has also updated the DPM query tools.

EBA Banking Stakeholders Group held its first meeting in its new composition

07 July 2020

The EBA Banking Stakeholder Group (BSG) held today its first meeting in its new composition. The renewed BSG, the fifth one since the establishment of the European Banking Authority (EBA) in 2011, was agreed by the EBA Board of Supervisors at its meeting on 17 June 2020. The 30 selected members, who started their four-year mandate on 1 July 2020, will provide advice to the EBA on its policy work and must be consulted on technical standards, guidelines and recommendations.

Welcoming the new BSG members, Jose Manuel Campa, Chairperson of the EBA, said: “Thanks to the variety of perspectives and expertise stemming from the diverse and balanced membership, I am confident that this advisory body will provide valuable input to our policy work and I am looking forward to a fruitful cooperation with each of the selected members”.

Following a call for expression of interest launched on 6 March 2020, the EBA carried out a selection process to ensure an adequate balance between EU Member States, represented entities and members' gender. The renewed BSG represents (i) the financial institutions operating in the Union, with 13 members; (ii) consumers, users of banking services, employees’ representatives of financial institutions operating in the Union and representatives of SME’s, with 13 members; (iii) independent top-ranking academics with 4 members.

Legal basis and background

Following the changes introduced by the ESAs’ Review to the EBA Regulation, Article 37 was amended, with effect on 1 January 2020. The changes, which relate to the composition, length of mandate, and scope of activities of the Stakeholder Groups, required the EBA to re-establish the BSG in a different composition.

EBA launches discussion on further enhancing supervisory powers of competent authorities

26 June 2020

The European Banking Authority (EBA) published today a discussion paper exploring ways on how to enhance the Bank Recovery and Resolution Directive (BRRD) framework on early intervention measures. The objective is to further enhance crisis management tools available for competent authorities in addition to well-established and widely used supervisory powers laid down in the Capital Requirements Directive (CRD) and in the Single Supervisory Mechanism Regulation (SSMR).   

The BRRD introduced early intervention measures (EIMs) to expand the existing set of powers available to supervisors towards institutions in difficulties. While monitoring the application of EIMs in 2015-2018, the EBA observed a limited use of EIMs across the European Union (EU) during that period. Instead of EIMs, the competent authorities often preferred to apply other pre-BRRD supervisory powers available to them.

The EBA investigated the reasons for these supervisory practices. While recognising that EIMs could be successfully implemented under the existing regulatory framework, the EBA identified some challenges in their application, and is now putting for discussion potential solutions aimed at enhancing the framework.

Consultation process

In order to broaden the supervisory discussion on EIMs conducted among the EU competent authorities, the EBA also invites views from external stakeholders. In particular, the EBA welcomes input from legal professionals, academics and supervisors from outside of the EU.

Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 25 September 2020. All contributions received will be published following the end of the consultation, unless requested otherwise.

Legal basis

Early intervention measures are available to competent authorities pursuant to Articles 27-29 of Directive 2014/59/EU (BRRD). Other supervisory powers include for instance supervisory measures pursuant to Article 104 and 105 of Directive 2013/36/EU (CRD) and Article 16 of Regulation 1024/2013 (SSM-R).

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EBA makes changes to its Q&A tool

17 June 2020

The European Banking Authority (EBA) has expanded the scope of its Questions and Answers (Q&A) process and tool to enable the submission of questions on the Anti-Money-Laundering Directive and Consumer Protection legislation under the EBA’s scope. Going forward, submitted questions, subject to meeting the prescribed criteria, will be published on the EBA website while their answers are being prepared. The EBA has also made some changes to expand and update its online Interactive Single Rulebook.

Legal basis and background

The changes reflect the new Article 16b) of the EBA founding Regulation on Q&A.

The Q&A tool is an important convergence tool that promotes common supervisory approaches and practices by giving guidance on the application of Union legal acts within the scope of the EBA. 
 

EBA calls for input to understand impact of de-risking on financial institutions and customers

15 June 2020

The European Banking Authority (EBA) issued today a call for input to understand the scale and drivers of ‘de-risking‘ at EU level and its impact on customers. This call, which forms part of the EBA’s work to lead, coordinate and monitor the EU financial sector’s AML/CFT efforts, aims primarily to understand why financial institutions choose to de-risk instead of managing the risks associated with certain sectors or customers. This call for input is of interest to stakeholders across the financial sector and its users, as the EBA wants to hear from all groups affected by de-risking. The call for input runs until 11 September 2020.

To manage customers‘ profiles associated with higher money laundering and terrorist financing (ML/TF) risks, financial institutions may decide not to service a particular customer or category of customers. This is referred to as ‘de-risking‘, and affects both financial institutions and its users. De-risking affects particular sectors and customers across the EU, such as banks engaged in correspondent banking relationships, payment institutions and NGOs.

Given the variety of institutions and customers affected by de-risking and the different degree at which Member States are exposed to this phenomenon, the EBA is reaching out to stakeholders across the financial sector and its users to hear from their experiences.

Responses to this call will inform the EBA 2021 Opinion on ML/TF risks and potentially other policy outputs. 

Process

The contributions to the call for input can be submitted by clicking on the "send your comments" button on the EBA's dedicated webpage. All contributions received will be published, unless requested otherwise. The call for input is open until 6 p.m. CET on 11 September 2020.

Legal Basis 

The EBA is mandated under Art. 6(5) of Directive (EU) 2015/849  to develop a biennial Opinion on the risks of money laundering and terrorist financing affecting the Union's financial sector. The EBA also has a legal mandate to lead, coordinate and monitor the financial sector’s fight against ML/TF across the EU. [For more information, check the factsheet]

EBA proposes enhanced standardisation of disclosure requirements laid down in the Non-Financial Reporting Directive

11 June 2020

The European Banking Authority (EBA) submitted today its response to the European Commission’s public consultation on the review of the Non-Financial Reporting Directive (NFRD). The EBA welcomes this consultation, and agrees with the need to revise the NFRD so as to meet the demand for relevant, reliable and comparable company disclosure on non-financial matters. The EBA also highlights the need to increase standardisation by setting out mandatory rather than voluntary requirements, so as to ensure comparable disclosures. Finally, the EBA supports this review as a good opportunity to expand the scope of companies covered by the NFRD, in a proportionate way.

The European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA) have also provided responses to the consultation. Along with their responses, the three European Supervisory Authorities (ESAs) have submitted a joint letter from their Chairs, highlighting certain key messages, which are of particular importance for the future of Europe’s non-financial reporting regime.
 

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EBA issues revised list of validation rules

10 June 2020

The European Banking Authority (EBA) issued today a revised list of validation rules in its Implementing Technical Standards (ITS) on supervisory reporting, highlighting those which have been deactivated either for incorrectness or for triggering IT problems. Competent Authorities throughout the EU are informed that data submitted in accordance with these ITS should not be formally validated against the set of deactivated rules.

EBA launches consultation on technical standards specifying the prudential treatment of software assets

09 June 2020

The European Banking Authority (EBA) launched today a consultation on draft Regulatory Technical Standards (RTS) specifying the prudential treatment of software assets. As the banking sector is moving towards a more digital environment, the aim of these draft RTS is to achieve an appropriate balance between the need to maintain a certain margin of conservatism in the prudential treatment of software assets and their relevance from a business and an economic perspective. The consultation runs until 09 July 2020.

As part of the Risk Reduction Measures (RRM) package adopted by the European legislators, the Capital Requirements Regulation (CRR) has been amended and introduced, among other things,  an exemption from the deduction of intangible assets from Common Equity Tier 1 (CET1) items for prudently valued software assets, the value of which is not negatively affected by resolution, insolvency or liquidation of the institution. In addition, the EBA has been mandated to develop draft RTS to specify how this provision shall be applied.

These draft RTS specify the methodology to be adopted by institutions for the purpose of the prudential treatment of software assets. In particular, these draft RTS introduce a prudential treatment based on their amortisation, which is deemed to strike an appropriate balance between the need to maintain a certain margin of conservatism in the treatment of software assets as intangibles, and their relevance from a business and an economic perspective. The proposed approach is expected to be easy to implement and applicable to all institutions in a standardised manner.  

The EBA will closely monitor the evolution of the investments in software assets going forward, including the link between the proposed prudential treatment and the need for EU institutions to make some necessary investments in IT developments in areas like cyber risk or digitalisation.

Consultation process

Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 09 July 2020. All contributions received will be published following the end of the consultation, unless requested otherwise.

A public hearing will take place on 23 June 2020 from 14.30 to 17.00 CET. 

Legal basis 

These draft RTS have been developed according to Article 36(4) of Regulation (EU) No 575/2013 (Capital Requirements Regulation – CRR), which mandates the EBA to “specify the application of the deductions referred to in point (b) of paragraph 1 of Article 36, including the materiality of negative effects on the value which do not cause prudential concerns”. 

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ESAs announce public hearing on ESG disclosures

09 June 2020

The three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) will organise a public hearing on proposed environmental, social and governance (ESG) disclosure standards for financial market participants, advisers and products.

The aim of the public hearing is to explain and discuss the content of the consultation paper published on 23 April, on the draft RTS under the Regulation on sustainability‐related disclosures in the financial services sector. The hearing will be of interest to any stakeholder affected by the Regulation on sustainability-related disclosures in the financial services sector, such as financial market participants, financial advisers, including their representative associations, environmental associations, investor representatives or consumer bodies, and consultants or academics and representatives from the EU and national institutions

To attend the hearing, please register by 25 June using the form available on the public hearing page.  Registered participants will receive information on how to join the hearing online or by dial-in after the close of the registration period.