Response to consultation Paper on Draft Implementing Technical Standards on reporting requirements for investment firms under Article 54(3) and on disclosures requirements under Article 49(2) of Regulation (EU) 2019/2033
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For class 2 investment firms that are bound to comply with the new reporting framework on a quarterly basis, we understand that (i) Q2 reporting (with reporting reference date 30 June 2021) shall be done under the current CRR1 framework and (ii) Q3 reporting (with reference date 30 September 2021 and submission date 11 November 2021) shall be the first to comply with the IFR reporting framework.
The situation is less straightforward in case the supervisory reporting or disclosure requirements apply on an annual basis. This applies to both class 3 investment firms subjected to the annual supervisory reporting requirements as well as class 2 firms subjected to the annual public disclosure requirements. Considering the general application date of the IFR, not all firms will be able to report or disclose relevant information under the IFR regime for Q1 and Q2 2021, given that, in principle, they must apply the CRR requirements until 25 June 2021. On the other hand, it is burdensome for investment firms to make their 2021 disclosures under two regimes. Therefore, it would be appreciated if EBA could clarify that investment firms have the option to either make their 2021 disclosures (i) under the two regimes separately (i.e., one Pillar 3 report under the CRR1 regime for Q1-Q2 2021 as well as one disclosure report under the IFR regime for Q3-Q4 2021) or (ii) entirely under the IFR regime.
Question 11: Is the ITS text clear to the respondents?
The date of application of the RTS and ITS related to both supervisory reporting as well as disclosure requirements is set simultaneously with the entry into force of IFR, i.e., 26 June 2021. Many investment firms that are currently applying the reporting and disclosure requirements under the CRR regime will need to shift to the IFR regime on that date. Therefore, it would be appreciated if EBA could provide additional clarity as to how this transition should be implemented.For class 2 investment firms that are bound to comply with the new reporting framework on a quarterly basis, we understand that (i) Q2 reporting (with reporting reference date 30 June 2021) shall be done under the current CRR1 framework and (ii) Q3 reporting (with reference date 30 September 2021 and submission date 11 November 2021) shall be the first to comply with the IFR reporting framework.
The situation is less straightforward in case the supervisory reporting or disclosure requirements apply on an annual basis. This applies to both class 3 investment firms subjected to the annual supervisory reporting requirements as well as class 2 firms subjected to the annual public disclosure requirements. Considering the general application date of the IFR, not all firms will be able to report or disclose relevant information under the IFR regime for Q1 and Q2 2021, given that, in principle, they must apply the CRR requirements until 25 June 2021. On the other hand, it is burdensome for investment firms to make their 2021 disclosures under two regimes. Therefore, it would be appreciated if EBA could clarify that investment firms have the option to either make their 2021 disclosures (i) under the two regimes separately (i.e., one Pillar 3 report under the CRR1 regime for Q1-Q2 2021 as well as one disclosure report under the IFR regime for Q3-Q4 2021) or (ii) entirely under the IFR regime.