Response to consultation on draft Regulatory Technical Standards on own funds requirements for investment firms based on fixed overheads
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However, EBA proposes under Article 36(5) of the draft RTS that firms shall divide the result of the calculation of paragraphs 1 and 2 by the number of months that are reflected in the financial statements and shall subsequently multiple the result by twelve, where the firm’s most recent audited financial statement does not reflect a twelve month period. In our view, this could be lead to disproportionate own fund requirements in cases that there is a concentration of relevant costs during the year. Therefore, we propose implementing appropriate corrective measures on initiative of the national authority or ESMA.
Do you agree with the inclusion of tied agents, as set out in Article 36(4)? If not, what alternative do you suggest?
We do not have any comments on the inclusion of tied agents because our members are not subject to this clause.However, EBA proposes under Article 36(5) of the draft RTS that firms shall divide the result of the calculation of paragraphs 1 and 2 by the number of months that are reflected in the financial statements and shall subsequently multiple the result by twelve, where the firm’s most recent audited financial statement does not reflect a twelve month period. In our view, this could be lead to disproportionate own fund requirements in cases that there is a concentration of relevant costs during the year. Therefore, we propose implementing appropriate corrective measures on initiative of the national authority or ESMA.