![]() The draft RTS provide clarification on the measurement of most of the Risk-to-Client ( RtC) K-factors and some of Risk-to-Firm ( RtF) K-factors, whereas the Risk-to-Market ( RtM) K-factors are either defined as references to the CRR or detailed in the IFR and therefore require no further specification. Point (a) of Article 15(5) of the IFR asks the EBA to draft RTS specifying the methods for measuring the K-factors, when they are not already fully detailed in the IFR.The notion of ‘material change’ is also specified, in accordance with which the Member State competent authority may allow the fixed overheads requirement to be adjusted. Article 13(4) of the Investment Firm Regulation ( IFR) asks the EBA to draft RTS specifying the deductions to be applied for the calculation of the fixed costs, which are the basis for the calculation of the fixed overheads requirements. ![]() The draft RTS relate to the following mandates: The proposed draft RTS consist of a subset of the information needed for the authorisation of a credit institution.Ī second group of RTS relate to capital requirements for investment firms at solo level. Article 8a(6)(a) of the Capital Requirements Directive IV ( CRD IV) asks the EBA to draft RTS specifying the information to be provided to Member State competent authorities for the authorisation of a credit institution in accordance with the new definition introduced in point (b) of Article 4.1.(a).1 of the Capital Requirements Regulation ( CRR). The first draft RTS included in the final report have been developed for the mandates related to the authorisation of certain credit institutions. On 16 December 2020, the European Banking Authority ( EBA) issued a final report containing seven final draft regulatory technical standards ( RTS) on the prudential treatment of investment firms. By Jochen Vester (UK) and Simon Lovegrove (UK) on DecemPosted in Capital adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, Germany, Italy, The Netherlands, United Kingdom
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