The purpose of these RTS is to harmonise the calculation of capital requirements for investment firms with limited authorisation to provide investment services, as well as to harmonise the conditions under which competent authorities can make adjustments to such requirements. To this end, the draft RTS also provide a definition of fixed overheads.
For the calculation of the fixed overheads, these draft RTS propose the so-called ‘subtractive' approach whereby variable cost items are deducted from the total expenses as calculated according to the applicable accounting framework. They propose to also include the use of tied agents, since a tied agent exposes an investment firm to the same risk it is exposed to when it carries out business on its own.
Consultation process
Comments to this consultation 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 30 September, 2013.
A public hearing will take place at the EBA premises on 5 September 2013 from 13:00 to 15:00 hours UK time.
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