The deadline for the investment firms directive (IFD) and investment firms regulation (IFR) is approaching. The European Banking Authority (EBA) has issued a new supervisory reporting and disclosures framework for investment firms in the latest final draft Implementing Technical Standards they published. This final draft ITS has the purpose to ensure a correct and proportionate implementation of the new prudential framework for the investment firms, all while taking into account the different sizes, complexities and activities of investment firms. A set of templates is also being made available for the investment firms for the calculations.
The ITS in this packages focus on the main aspects of the new reporting framework regarding the calculation of own funds, levels of minimum capital, concentration risk, liquidity requirements and the level of activity in respect of class 3 firms (small and non-interconnected investment firms).
The ITS also propose a different set of templates to cover small and non-interconnected investment firms (class 3 firms) and to include information adapted to the size and complexity of their firm.
In addition, the ITS includes a standardised set of templates for the disclosures of own funds. The EBA is issuing a single set of standards with integrated Pillar 3 disclosures and supervisory reporting requirements and standardised formats and definitions with a view to improving consistency between reporting and disclosures requirements, which will facilitate compliance with both requirements.