Response to cP on comprehensive ITS for financial institutions public disclosure

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Disclosure of own funds

Disclosure of own funds
Template EU CCA: There is a discrepancy between Row 8 "Amount recognised in regulatory capital or eligible liabilities (Currency in million, as of most recent reporting date)" and the respective instructions "Specifies the amount recognised in regulatory own funds or eligible liabilities (total amount of the instrument recognised before transitional provisions for the relevant level of the disclosure - currency used for the reporting obligations)". In case of grandfathered instruments, the instruction "before transitional provisions" would always mean an amount of zero, as fully phased-in, i.e. before the application of the transitional provisions, a grandfathered instrument is no longer eligible. However the relevant information is the amount currently recognised in regulatory capital or eligible liabilities. The Basel Disclosure framework therefore limits the instruction for Row 8 to "Specifies amount recognised in regulatory capital".

The term "before transitional provisions" must be deleted.
(This discrepancy was already included in Delegated Regulation (EU) No. 1423/2013.)
Not as regards the frequency of disclosure, as in certain cases the disclosure of the "main features" template (CCA) is delayed. The Basel text requires an update whenever the bank issues or repays a capital/EL instrument and whenever there is a redemption, conversion/writedown or other material change in the nature of an existing instrument. In contrast, the CRR/ITS does not require such an ad hoc disclosure. The ITS should be aligned with the Basel text in this regard.

In its response to comments on the draft ITS on Disclosure in 2013 (EBA/ITS/2013/01), EBA stated that the frequency of reporting was defined in the Level 1 text and did not fall within the EBA mandate for the ITS. In this case, an alignment with the Basel text should be achieved by an amendment of the Level 1 text in the CRR3.

Name of organisation

Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and Deutsche Bundesbank