20 December 2011
The EBA published today a consultation paper on draft Implementing Technical Standards (ITS) on supervisory reporting requirements for institutions (CP50). The public consultation starts today and runs until 20 March 2012.
The consultation is open to all interested parties, including supervised institutions and other market participants.
All contributions received will be published on the EBA's website unless respondents request otherwise. Please send your comments to the following e-mail address: CP50@eba.europa.eu by 20 March 2012.
A public hearing will be organised at the EBA premises in London, on 20 February 2012. Registration form
Main features of this ITS
This draft ITS aims at implementing uniform reporting requirements which are necessary to ensure fair conditions of competition between comparable groups of credit institutions and investment firms. Uniform requirements will ultimately make institutions more efficient and result in a greater convergence of supervisory practices.
The ITS on reporting has been developed on the basis of the COREP and FINREP guidelines. The scope and level of application are in line with the Capital Requirements Regulation (CCR), currently under discussion by the EU legislators. However, in relation to financial information, the consultation is currently limited to the requirements to be submitted by credit institutions at the consolidated level only.
Reporting requirements have been developed taking into account the nature, scale and complexity of institutions' activities. Proportionality is an integral part of the ITS with certain reporting requirements being applicable only to institutions using complex approaches to measure own funds requirements or to institutions that have significant risk exposures.
Moreover, given that there is not as yet harmonisation on the underlying accounting frameworks applied in the various Member States, the ITS has taken this into account when defining the formats and frequency of supervisory reporting. The ITS does not intend to harmonise the underlying valuation measures.
According to the European Commission proposals, institutions are required to comply with new CRR requirements as of 1 January 2013. Therefore, the first regular reporting period thereafter is expected to be Q1 2013 with the first reporting reference date being 31 March 2013. Institutions will then have to submit a first set of data related to the reference date to national authorities by 13 May 2013.
The EBA intends to finalise the draft ITS and submit it to the Commission by 30 June 2012.
It should be noted that the proposed submission date assumes that a final CRR will be available beforehand.
Background: CRD IV/CRR
This draft ITS is part of the CRR which sets out prudential requirements for institutions which are expected to be applicable as of 1 January 2013.
The CRR contains in a number of Articles specific mandates for the EBA to develop draft Implementing Technical Standards (ITS) related to supervisory reporting requirements.
These ITS will be part of the single rulebook enhancing regulatory harmonisation in Europe with the particular aim of specifying uniform formats, frequencies and dates of prudential reporting as well as IT solutions to be applied by credit institutions and investment firms in Europe.