The European Banking Authority (EBA) launched today a consultation on a set of Guidelines on regulatory disclosure requirements following an update of the Pillar 3 requirements by the Basel Committee in January 2015. These Guidelines are part of the EBA’s work to improve and enhance the consistency and comparability of institutions’ disclosures and aim to ensure market discipline. The consultation runs until 29 September 2016.
The revised Pillar 3 framework, which applies as of 31 December 2016, provides for common format and harmonised frequencies for the disclosure of existing requirements as well as adds certain new requirements.
The incorporation of the revised Pillar 3 into the CRR would requires an update of the disclosure requirements laid down in the Capital Requirements Regulation (CRR), which will only take place as part of a comprehensive review process of the regulation. In the meantime, EU banks will face market pressure to provide disclosures in line with the revised Pillar 3 when it becomes applicable.
The aim of these Guidelines is, therefore, to provide guidance to institutions to enable them to comply with the CRR provisions while implementing the revised Basel Pillar 3 requirements. The Guidelines apply to Globally and Other Systemically Important Institutions (G-SII and O-SII) and do not waive the requirements for these and other institutions to comply with the other CRR disclosure requirements for which the Guidelines offer no guidance.
The Guidelines will apply for the year-end 2017 disclosures. However, G-SII are recommended to implement a limited subset of disclosures relating to risk-weighted assets (RWA) and capital requirements as soon as year-end 2016 so as to provide users with information suitable for comparison with international peers.
Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. All contributions received will be published following the close of the consultation, unless requested otherwise. Please note that the deadline for the submission of comments is 29 September 2016.
A public hearing will take place at the EBA premises on 6 September 2016 from 10.00am to 12.00pm UK time.
The EBA has developed these Guidelines on its own initiative according to Article 16 of its founding Regulation to allow institutions to implement the revised Pillar 3 framework in a way that is consistent with the existing disclosure requirements in the CRR.
Adopted and published on the Official Journal
The European Banking Authority (EBA) launched today a consultation on its draft technical standards on the separation of payment card schemes and processing entities under Article 7(6) of the Interchange Fee Regulation (IFR). The technical standards introduce specific requirements related to the independence of payment card schemes and processing entities. The consultation runs until 8 March 2016.
The EBA draft RTS requires payment card schemes and processing entities to have accounting processes in place to produce annual audited information related to separated balance sheets, and profit & loss accounts; to separate workspaces; and to ensure the independence of senior management, management bodies and staff. It also sets out requirements related to the use of shared services and a shared information management system; the treatment of sensitive information; a code of conduct; and the separation of annual operating plans.
The IFR aims at facilitating the creation of a single market for card payments across the European Union, by ensuring a level playing field that will facilitate greater competition. In order to contribute to this objective, and to ensure effective and sustainable competition among processing services providers, the IFR confers on the EBA the mandate to develop regulatory technical standards (RTS) to separate payment card schemes and processing entities in terms of accounting, organisation and decision making process.
The CP also provides some clarity to market participants as regards supervisory expectations during the period between the application date of Article 7 IFR on 8 June 2016 and the possibly later application date of the RTS.
Responses to this Consultation Paper can be sent to the EBA until 8 March 2016, by clicking on the "send your comments" button on the website. The EBA will assess the responses received and use them as input for the development of the final draft RTS, which it will publish in Q2 of 2016.
The Interchange Fees for Card-Based Payment Transactions Regulation (EU) 2015/751 (IFR) entered into force in the European Union on 8 June 2015 and applies from 8 June 2016.
The European Banking Authority (EBA) launched a consultation on the draft Guidelines for passport notifications for mortgage credit intermediaries under the Mortgage Credit Directive (MCD). The Guidelines will ensure that information about credit intermediaries that carry out business in one or more Member States is exchanged consistently between the national authorities of the home and host Member States respectively. This public consultation runs until 4 July 2015.
The Guidelines follow on from the Discussion Paper that the EBA had issued in December 2014 to gather stakeholders' views on a preliminary proposal for formalising passport notifications for mortgage credit intermediaries. In line with the MCD, passport notifications will need to be exchanged between national authorities competent for the registration and/or supervision of mortgage credit intermediaries across the EU Member States. This will ensure that information on the provision of services and the establishment of branches, as well as on the transmission of notifications, the registrations, and the notifications of changes is shared consistently across the EU.
Respondents to the 2014 Discussion Paper broadly supported the draft requirements. The feedback received from respondents has been taken into account in the draft Guidelines for passport notifications that are being launched for public consultation today. These also include template notification forms for exercising the freedom to provide services and freedom of establishment, as foreseen in Article 32 of the MCD.
The EBA expects to be able to deliver the final Guidelines in Q3 2015. They would apply from 21 March 2016, the transposition date of the MCD.
Comments to this Consultation Paper 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 4 July 2015.
The Directive 2014/17/EU on credit agreements for consumers relating to residential immovable property (Mortgage Credit Directive - MCD) was published in the Official Journal of the Commission on 28 February 2014, with a transposition date of 21 March 2016.