On 30 May 2023, the European Banking Authority (EBA) published a consultation paper containing draft technical standards which replace those contained in Commission Delegated Regulation (EU) 2016/98 and Commission Implementing Regulation (EU) 2016/99 specifying the functioning of supervisory colleges.
The technical standards are being updated given that the legal framework for banks and investment firms has been further developed by the Capital Requirements Directive V and Capital Requirements Regulation II as well as the Investment Firms Directive and Investment Firms Regulation. In addition, the EBA has gathered further information on the functioning of colleges, as part of its ongoing college monitoring activity, including on the implementation of the provisions of the above mentioned Delegated Regulation and Implementing Regulation, as well as in the context of recent economic developments caused by the COVID-19 pandemic and the Russian invasion of Ukraine.
The main updates that the EBA proposes to make to the technical standards cover:
- Enhanced information exchange within the college, as well as with observers, in going concern and in emergency situations.
- Effective identification of emerging risks in case of an event of adverse material impact on the risk profile of the group or its entities.
- Appropriate use of the possibility for ‘entrustment of tasks and delegation of responsibility’, when it facilitates efficient and effective supervision of cross-border banking groups.
The deadline for comments on the consultation paper is 30 August 2023.
The EBA expects to submit the draft technical standards to the European Commission in Q4 2023. In view of the considerable changes, the current technical standards on colleges of supervisors issued by the Commission in 2016 will be repealed as soon as the new ones are issued.