08 April 2022
The European Banking Authority (EBA) published today an Opinion on the amendments proposed by the European Commission to the EBA final draft Regulatory Technical Standards (RTS). In the Opinion the EBA expresses its disagreement with two substantive changes proposed by the Commission and agrees with the other amendments, which are considered non-substantive.
The European Commission’s version of the RTS, compared to the final draft RTS submitted by the EBA in May 2021, includes two substantive changes related to: i) the provisions covering the notions of direct and indirect funding and ii) the prior permission process for certain types of liquidation entities.
Concerning the notions of direct and indirect funding, the EBA considers that the RTS already contain, from a supervisory perspective, the necessary principles or tools needed for capturing all cases of direct or indirect funding without any additional description.
Further, the EBA considers that its final draft RTS designed a prior permission regime proportionate to the goals of the regulation and is of the opinion that no change is warranted .
This Opinion is based on Article 10(1) of Regulation (EU) No 1093/2010, which requires the Authority to submit its response in the form of an opinion to amendments proposed by the European Commission.
On 26 May 2021 the EBA submitted its final draft RTS and on the 24 February 2022, the EC sent a letter to the EBA about its intention to endorse the RTS with amendments and submitted a modified version of the RTS.