EBA欧洲银行-Public-hearing-on-RTS-and-ITS-authorisation-of-credit-institutions_14页_1mb

EBA Consultation Paper Summary: Draft Regulatory and Implementing Technical Standards on Credit Institution Authorisation

Core Content

The European Banking Authority (EBA) issued a consultation paper on 8 November 2016, proposing Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITS) under Directive 2013/36/EU (CRD) to harmonise the authorisation process for credit institutions across the EU. The aim is to promote the freedom of establishment and ensure a level playing field by setting uniform requirements for the information and procedures involved in authorisation.

The consultation paper outlines the scope and structure of the proposed technical standards, addressing three main areas:

1. Information to be provided by applicants for authorisation
2. Requirements applicable to shareholders and members with qualifying holdings
3. Obstacles to the effective exercise of supervisory functions

The EBA also proposes a standardised application form through the ITS, which is intended to streamline the submission process and ensure completeness of applications.

Main Topics Covered in the RTS

1. Information to be Provided

• Presentation and history of the applicant, including identification details, constitutional documents, and existing licences.
• Scope of authorisation, specifying the activities the institution will carry out and its membership in a deposit guarantee scheme.
• Own funds, requiring evidence of issued capital, paid-up capital, and funding sources, along with an assessment of internal capital adequacy over a three-year stress period.
• Shareholders and members with qualifying holdings, drawing on the draft Joint Guidelines of EBA, ESMA, and EIOPA, with differentiated requirements for natural and legal persons.
• Largest shareholders and close links, even if they do not have qualifying holdings, to ensure transparency and mitigate risks.
• Management body members, including heads of internal control and chief financial officers, based on the draft Joint Guidelines of EBA and ESMA.
• Programme of operations, auditors, organisational structure, and internal control systems.
• Financial and recovery information, including forecasts, financial statements, guarantees, and policies.

2. Requirements for Shareholders with Qualifying Holdings

• The RTS align with the assessment criteria for acquisitions of qualifying holdings under Article 23(1) of CRD.
• Shareholders acquiring participation during the initial authorisation process are subject to the same assessment as those acquiring post-approval, as there is no justification for a different treatment.

3. Obstacles to Supervisory Functions

• The RTS identify potential obstacles that could hinder the competent authority’s ability to supervise the institution effectively.
• These include:
  • Influence of close links with other entities or individuals.
  • Legal and regulatory challenges in third countries.
  • Information exchange with supervisory authorities of linked entities.
  • Complexity and transparency of the applicant’s or linked entities’ structures.
  • Geographical location of group members.
  • Activities performed by group members or linked entities.

The EBA does not intend to provide a comprehensive list of obstacles, but rather a set of considerations for competent authorities to assess.

Flexibility in the RTS

• The RTS allow for flexibility in the information requirements, ensuring that competent authorities can tailor the process to the specific needs of the application.
• Article 11(1) permits additional information if it is necessary, proportionate, and not duplicative.
• Article 11(2) excludes information that is already held by the competent authority, irrelevant to the activities of the institution, or waived under Article 21 CRD.

ITS: Standard Forms and Procedures

• The ITS provide a comprehensive application form that mirrors the content of the RTS.
• Information can be submitted in the body of the form or in annexes.
• The ITS also outline the submission procedure and a mechanism for assessing the completeness of the application.
• Both the RTS and ITS are set to apply six months after their entry into force, to allow for adequate preparation by market participants and competent authorities.

Public Consultation Questions

The EBA invites feedback on the following eight questions:

1. General comments on the draft RTS and ITS.
2. Comments on the proposed list of information for authorisation.
3. Comments on the requirements for shareholders with qualifying holdings.
4. Comments on the proposed list of obstacles to supervisory functions.
5. Comments on the procedure outlined in the draft ITS.
6. Comments on the draft application form.
7. Opinion on whether the assessment of management should include:
   • Heads of internal control and CFOs
   • Senior management members
   • Another set of officers (specify)
8. Views on whether further flexibility, such as a sequenced submission process, should be introduced.

Key Information

• The consultation is part of the EBA's mandate under Article 8(2) and (3) of CRD.
• The RTS and ITS are designed to ensure harmonisation, transparency, and effective supervision.
• The EBA seeks input on the scope, structure, and flexibility of the proposed standards.
• The final standards will be applicable across the EU, supporting the internal market and regulatory consistency.