Are the credit institutions that should not prepare consolidated accounts according to the prudential rules under the scope of the new FINREP framework?

According to the provisions of Article 99(2) of the Regulation (EU) 575/2013 (CRR), institutions subject to Article 4 of Regulation (EC) no.1606/2002 and credit institutions other than those referred to in Article 4 of that Regulation that prepare their consolidated accounts in conformity with the IFRS, shall also report financial information. In conformity with the Chapter 3 Section 2 of the ITS, the financial information is to be reported on a consolidated basis. In Romania there are credit institutions that are not parent 13 companies and, by consequence, should not prepare consolidated accounts according to the prudential rules (prudential scope of consolidation).

In accordance with Article 99 (2) of Regulation (EU) No 575/2013 (CRR) and Article 9 of the Commission Implementing Regulation (EU) No 680/2014 credit institutions that are neither required nor using EU endorsed IFRS for the preparation of their consolidated accounts, do not have to report Annex III of the Commission Implementing Regulation (EU) No 680/2014 (the FINREP templates). However, regardless of their use of IFRS in the preparation of their consolidated financial statements, credit institutions that according to Article 99 (3) of CRR are required by competent authorities to apply IFRS for the reporting of own funds on a consolidated basis are required to report financial information following Annex III of the Commission Implementing Regulation (EU) No 680/2014 (FINREP templates).

DISCLAIMER:

This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General for Internal Market and Services) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.