05 July 2021
The European Banking Authority (EBA) published today final draft 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, developed in consultation with the European Securities and Markets Authority (ESMA), provide a solid framework for (i) cooperation in the supervision of investment firm groups through colleges of supervisors and (ii) for information exchange for investment firms operating within the EU 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.
The final draft RTS on colleges of supervisors for investment firm groups specify the conditions under which colleges of supervisors exercise their tasks. The final draft RTS on colleges are structured around four main sections: (1) establishment of colleges, (2) functioning of colleges; (3) planning and coordination of supervisory activities in going concern situations; and (4) planning and coordination of supervisory activities in preparation for and during emergency situations.
The final 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 final draft RTS specify the information that competent authorities in the host Member State and those in the home Member State shall exchange, whereas the final draft ITS establish standard forms, templates, and procedures for sharing the information specified in the RTS.
All three standards apply to Class 2 and 3 investment firms and have been prepared reflecting on the supervisory experience in exchange of information and functioning of colleges for credit institutions, adjusting them to the needs of investment firms’ supervision and embedding the proportionality principle.
The final 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 final 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 been delivered by the EBA in consultation with ESMA.