Consultation on draft RTS on colleges of supervisors for investment firms groups (EBA/CP/2021/05)

Start Date: 24/02/2021 | Deadline: 23/04/2021 | Status: CLOSED |

  • The two sets of standards provide a framework for supervisory cooperation and information exchanges for cross-border investment firms.
  • The requirements cover all forms of cross-border operations and aim at ensuring that supervisory cooperation of cross-border operating investment firms is effective and efficient.

The European Banking Authority (EBA) launched today two public consultations on regulatory technical standards (RTS) and Implementing Technical Standards (ITS) on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms. These draft standards provide a solid framework for (i) cooperation in the supervision of investment firm groups though colleges of supervisors and (ii) for information exchange for investment firms operating through branches or the free provision of services. These draft standards are part of the phase 2 mandates of the EBA roadmap on investment firms, and aim at improving cooperation and information exchanges between the supervisors of investment firms. Both consultations run until 23 April 2021.

The draft RTS on colleges of supervisors for investment firms groups specify the conditions under which colleges of supervisors exercise their tasks. The RTS target the investment firm groups falling under the remit of the Investment Firms Directive (IFD) and are built on the experience gained over the years in the colleges of supervisors of credit institutions and larger and more complex investment firms groups that have been established in accordance with the Capital Requirements Directive (CRD). The draft RTS are structured around four main sections:

  • establishment of colleges,
  • functioning of colleges;
  • planning and coordination of supervisory activities in going concern situations;
  • planning and coordination of supervisory activities in preparation for and during emergency situations.

The draft RTS and ITS on information exchange between the competent authorities of home and host Member States complement the RTS on colleges of supervisors and address situations where investment firms operate in another Member State through branches or the free provision of services, where colleges may not be established. In particular, the draft RTS specify the information that host Member State competent authorities and home Member State competent authorities shall exchange with each other, whereas the draft ITS establish standard forms, templates and procedures for sharing the information specified in the RTS.

Consultation process

Responses to the two consultations 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 23 April 2021.

A public hearing will take place on 7 April 2021.

Legal basis

The draft RTS on colleges of supervisors for investment firms groups have been developed in accordance with Article 48(8) of Directive (EU) 2019/2034, which mandates the Authority to develop, in consultation with ESMA, draft RTS to specify the conditions under which the colleges of supervisors established for investment firms groups exercise their tasks.

The draft RTS and ITS on information exchange have been developed in accordance with Articles 13(7) and Article 13(8) of Directive (EU) 2019/2034, which mandate the Authority to develop regulatory and implementing technical standards on the exchange of information between home and host competent authorities supervising investment firms operating through branches. Both mandates have to be delivered by the EBA in consultation with ESMA.