Response to consultation on draft Regulatory Technical Standards on own funds requirements for investment firms based on fixed overheads

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Do you agree with the inclusion of tied agents, as set out in Article 36(4)? If not, what alternative do you suggest?

We support the inclusion of tied agents in the capital calculations.

you agree that the inclusion of tied agents would be covered with a certain amount related to a tied agent rather than a variable sum? Or do you prefer the capital requirement to be calculated in the same manner as for the investment firm?

We believe that firms should be able to agree an approach with their supervisors.

Currently, a 35% share is proposed as the proportion of costs to be included for tied agents. Do you believe this is adequate?

No comment.

Do you agree with the proposed 20% threshold in Article 36a? Please provide evidence of the potential impact of this threshold.

We agree with a guideline setting out a % threshold. 20% seems reasonable. We are not sure that the addition of an absolute threshold adds much. The suggested threshold of EUR 2m may not be material for large investment firms in the context of their overall expense base.

Do you consider it necessary to set a de minimis amount for small investment firms, as set out in Article 36a(5)? If yes, what should the amount be?

A discussion between firms and their regulators, as part of the capital planning process, would be more appropriate to work out a numerative trigger.

Do you agree with the introduction of the EUR 2 million absolute threshold? If not, what should the amount be?

EUR 2 million would be more appropriate as guidance and applied in a proportionate manner, taking into account the firm’s business model, capital base and assets under management.

Could you provide any evidence (qualitative or quantitative) or data that would help the EBA to estimate more precisely the potential change in the own funds requirement in your jurisdiction?

No comment.

Do you agree with our analysis of the impact of the proposals in this CP? If not, can you provide any evidence or data that might further inform our analysis of the likely impacts of the proposals?

No comment.

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Response to consultation on draft Regulatory Technical Standards on own funds requirements for investment firms based on fixed overheads

Do you agree with the inclusion of tied agents, as set out in Article 36(4)? If not, what alternative do you suggest?

you agree that the inclusion of tied agents would be covered with a certain amount related to a tied agent rather than a variable sum? Or do you prefer the capital requirement to be calculated in the same manner as for the investment firm?

Currently, a 35% share is proposed as the proportion of costs to be included for tied agents. Do you believe this is adequate?

Do you agree with the proposed 20% threshold in Article 36a? Please provide evidence of the potential impact of this threshold.

Do you consider it necessary to set a de minimis amount for small investment firms, as set out in Article 36a(5)? If yes, what should the amount be?

Do you agree with the introduction of the EUR 2 million absolute threshold? If not, what should the amount be?

Could you provide any evidence (qualitative or quantitative) or data that would help the EBA to estimate more precisely the potential change in the own funds requirement in your jurisdiction?

Do you agree with our analysis of the impact of the proposals in this CP? If not, can you provide any evidence or data that might further inform our analysis of the likely impacts of the proposals?

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