On 13 March 2024, the European Commission adopted a Delegated Regulation supplementing the Investment Firms Regulation (IFR) with regards to regulatory technical standards (RTS) specifying the details of the scope and methods for prudential consolidation of an investment firm group.

The draft technical standards specify the details of the scope of and methods for prudential consolidation of investment firm groups, in particular for calculating the fixed overheads requirement, the permanent minimum capital requirement, the K-factor requirement on the basis of the consolidated situation of the investment firm group, and the method and necessary details to implement Article 7(2) of the IFR.

The Commission’s adoption of the technical standards follows the final report that was published by the European Banking Authority on 12 May 2023.