On 7 July 2023, the European Banking Authority (EBA) published a consultation paper on draft implementing technical standards (ITS) amending the ITS on disclosures and reporting on the minimum requirement for own funds and eligible liabilities (MREL) and total loss-absorbing capacity (TLAC) with regard to the disclosures and reporting of information on daisy chains and prior permissions.

The ITS were originally published in 2021 as Commission Implementing Regulation 2021/763. Institutions have been disclosing information to the market and reporting information to their competent and resolution authorities in accordance with the ITS for approximately two years.

The amendments are being made in light of recent and possible amendments to the Capital Requirements Regulation and also recent experiences with reporting since the ITS came into force. The amendments focus on the:

  • Requirement to deduct investments in eligible liabilities instruments of entities belonging to the same resolution group (‘daisy chain’ framework).
  • Prior permission regime for buying back eligible liabilities instruments issued by the reporting entities and groups.

The deadline for comments on the consultation is 18 August 2023.

Following this consultation, the EBA will finalise the draft ITS and submit them to the European Commission for adoption. The amendments are envisaged to the reference date of June 2024.