The Investment Firms Directive ((EU) 2019/2034) (IFD) and the Investment Firms Regulation ((EU) 2019/2033) (IFR) establish a new framework for prudential requirements for investment firms.
To aid implementation of the new regime, the EBA has been given a range of mandates, including one relating to the reclassification of certain investment firms to credit institutions in line with the CRD. This requires the EBA to draft regulatory technical standards (RTS) on the calculation methodology related to the €30bn threshold required for an investment firm to apply for a credit institution authorisation.
The EBA has now published a second consultation on these RTS. The latest proposals set out a proportionate and technically consistent methodology for the calculation of the level of total assets to be compared to the €30bn threshold. They also clarify the application of accounting standards, the treatment of branches, and the treatment of intragroup exposures.
The consultation closes on 17 July 2021.