Response to consultation Paper on the draft guidelines on materiality, proprietary and confidentiality and on disclosure frequency

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Q3) Should the guidelines be developed more on what is expected from institutions when an item of information is assessed as material?

We believe that the guidelines are sufficiently developed in this regard.

Q4) Do you agree with the principles and indicators to be considered in the assessment of materiality? Which additional principles or indicators, if any, would you like to see considered?

We do not believe that placing the same disclosure requirements on all institutions is consistent with the principle of proportionality. Ignoring size and complexity of the institutions places a big administrative burden on small and medium-sized institutions. In the Austrian Banking Act under section 5(1) item 9a and section 28a(5) 5 only institutions with important relevance (as defined by section 5(4) of the Austrian Banking Act) must provide full disclosures. We would encourage that Article 435(2a) of the CRR only applies to institutions with important relevance and that there is a specific exemption for small- and medium institutions from the disclosure of the number of directorships held by members of the management body.

Q5) Do you agree with the elements to be considered in the assessment of confidentiality or proprietary? Which additional element, if any, would you like to see considered?

Yes, we agree. We see no need for more elements to be considered.

Q6) Do you agree with the indicators in paragraphs 18 that should lead institutions to assess their need to disclose information more frequently? If not, which alternative indicators would you suggest?

We propose to replace the definition in paragraph 18 and consider instead whether the institution qualifies as a systemically important institution (as defined by the Single Supervisory Mechanism of the ECB), instead of the indicators mentioned in the consultation paper. We question strongly the inclusion of point d in paragraph 18 as we fail to see the importance of holding a larger foreign currency position in this context.

Q8) Do you agree that information listed in paragraph 19 should be provided in case disclosures are omitted due to immateriality reasons? If not, why? Do you agree that the provision of this information allows for an optimal degree of transparency regarding the use of the materiality waiver? If not, what additional information should be provided?

Article 432(1) of the CRR does not mention that institutions should provide information in case disclosures are omitted due to immateriality reasons.
Information has to be provided when information is assessed as proprietary or confidential (article 432(3)). We therefore consider that paragraph 19 of the consultation paper should be deleted.

Q10) Do you agree with the list of information that institutions should assess whether to disclose them more frequently than annually? If not, what information would you include in or exclude from this list?

The need for disclosing the full set of information required by Commission Implementing Regulation (EU) 1423/2013 (ITS on own funds) and the Draft ITS on Disclosure for Leverage Ratio under Article 451 (2) of Regulation (EU) 575/2013RTS on a semi-annual basis (instead of as before on an annual basis) for institutions meeting the indicator in point d) of paragraph 18, as described in paragraph 26 point a) of the CP on page 24, would cause a disproportionate additional expense on the reporting institution in relation to any perceived additional benefit for investors. Therefore, we ask that ask that these disclosures are required only on an annual basis as has been the case historically.

Q12) Do you agree with the proposed implementation date? If not, which alternative date would you suggest?

The proposed implementation date is January 2015. If this means that the disclosure obligation is in regards to information from 2014. If this is the case we would ask for a delay in order to provide sufficient time for institutions to comply with the new obligations (for example regarding the waiver and the frequency policies).

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Name of organisation

European Savings and Retail Banking Group