Shearman & Sterling LLP | Financial Regulatory Developments Focus | European Banking Authority Proposes Revised Technical Standards for Resolution Reporting
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  • European Banking Authority Proposes Revised Technical Standards for Resolution Reporting
    04/16/2018
    The European Banking Authority has published a final report and final revised draft Implementing Technical Standards on resolution reporting requirements. The EBA proposes to replace the existing ITS with the revised ITS to reflect the evolution in the policy and practices applied by authorities in the development of resolution plans for financial institutions. The new framework is proposed to become operational in 2019 when resolution authorities collect information as of December 31, 2018.

    The revised draft ITS set out the procedures and a minimum set of standard templates for use by institutions when providing information to resolution authorities that is needed to draw up and implement resolution plans. The power of resolution authorities to apply simplified obligations or to require further information from a firm is specifically provided for in the revised draft ITS, in line with the EU Bank Recovery and Resolution Directive. In addition, the revised draft ITS specify the information required from groups and from individual entities. Furthermore, the revised draft ITS set the frequency, reference dates and remittance dates and the format for submission of information.

    The EBA confirms that the final draft revised ITS take into account comments received during consultation and provides a summary of the main changes that have been made. The changes are:
    1. Deletion of the requirement to accelerate the remittance date in year three. However, data must still be submitted by the end of May in year one and the end of April in year two;
    2. Adjustment to the threshold for reporting entities: the low threshold for the first template has been maintained, but the financial templates only need to be submitted by entities which exceed 5% of the total risk-weighted asset, leverage ratio exposure or operating income of the group, or by entities which provide critical functions;
    3. Deletion of the templates for collecting advanced information on financial market infrastructure services and enabling services;
    4. Amendment of the liability template to provide for reporting of senior non-preferred debt, as provided for in recently adopted changes to the BRRD; and
    5. Alignment of the template on own funds requirements with supervisory reporting requirements.

    The revised draft ITS have been submitted to the European Commission for endorsement. Once published in the Official Journal of the European Union the revised framework will apply directly across the EU.

    View the final report and revised draft ITS.

    View the existing ITS.