Consultation on draft RTS on the reclassification of investment firms as credit institutions

  • Consultation
  • 17 JULY 2021
  • EBA/CP/2021/23

The European Banking Authority (EBA) launched today a second consultation on its draft regulatory technical standards (RTS) on the calculation of the threshold for investment firms. With this consultation, the EBA is seeking to address the level playing field concerns raised by the industry in relation to geographical constraints of some undertakings a well as to ensure a more proportionate and consistent methodology for the calculation of the thresholds. These RTS are part of the EBA’s roadmap for delivering on mandates related to the implementation of a new prudential regime for investment firms. The consultation runs until 17 July 2021.

The identification of large investment firms, which will be subject to the application of the Capital Requirements Regulation (CRR) and Capital Requirements Directive (CRD), depends on the size of the investment firms and of the groups they belong to. Based on the feedback received in the first consultation, which the EBA launched on 4 June 2020, concerns were raised on the level playing field between undertakings, which are part of groups domiciled in the EU and undertakings operating in the EU, which are part of groups domiciled outside of the EU. The amended proposals included in this consultation aim at ensuring that the framework is neutral with regards to geographical limitations.

These draft RTS set out a proportionate and technically consistent methodology for the calculation of the level of total assets to be compared to the EUR 30 bn threshold and further clarify the notion of relevant entity. Finally, they clarify elements related to the application of accounting standards, the treatment of branches, and the treatment of intragroup exposures.

Consultation process

Comments to these consultations can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 17 July 2021. All contributions received will be published following the close of the consultation, unless requested otherwise.

A public hearing will be organised in the form of a webinar on 23 June 2021 from 10:00 to 12:00 CET. The EBA invites interested stakeholders to register using this link.

The dial-in details will be communicated in due course.

Legal basis and next steps

The EBA has developed these draft RTS according to Article 8a(6)(b) of the CRD which mandates the Authority to further specify, develop and determine a prudential framework for investment firms to ensure a level playing field among investment firms across the EU and supervisory convergence.

To assess the impact of the provisions proposed in this regulatory product, the EBA, together with the relevant competent authorities, will carry out a data collection exercise in parallel with the public consultation.


The form is now closed.


Data collection for draft RTS on EUR 30bn threshold methodology

(174.18 KB - Excel Spreadsheet) Last update 7 June 2021

Consultation paper on draft RTS on the reclassification of investment firms as credit institutions

(299.75 KB - PDF) Last update 7 June 2021