The draft Regulatory Technical Standards (RTS) aim to ensure a consistent application of Articles 2, 7 and 8 and Annex II of the FICOD. The draft RTS provide clarification about which risk concentration and intra-group transactions at the level of the financial conglomerate should be considered “significant”, given that Articles 7 (2) and 8 (2) of the Directive require that significant risk concentration and intra-group transactions be reported to the coordinators. 

 

The draft RTS also provide for coordination of factors which coordinators and other relevant competent authorities should take into account when identifying types of significant risk concentration, defining appropriate thresholds for the reporting of risk concentration and intra-group transactions, when setting periods for reporting and overviewing significant risk concentration and intra-group transactions as part of the supplementary supervision on the basis of the FICOD.

 

In order to ensure a consistent application of the FICOD’s rules on risk concentration and intra-group transactions, the draft RTS provide that coordinators and the other relevant competent authorities should require regulated entities or mixed financial holding companies to report certain minimum information. The coordinator and the other relevant competent authorities should agree on the form and content of the significant intra-group transactions report, including language, frequency, addressees, remittance dates and channels of communication.

 

Within the powers assigned by Union and national law, and without prejudice to other supervisory powers available, the draft RTS aim to provide a set of supervisory measures which should be taken into account by supervisors in their supplementary supervision according to the FICOD in order to foster a more harmonised approach with respect to supervisory measures.

 

Comments to this consultation paper can be sent until 24 October 2014.

 

Press release

Consultation paper