On 5 March 2021, the European Banking Authority (EBA) published final draft implementing technical standards (ITS) on the supervisory reporting and disclosures of investment firms.
The provisions on disclosure are contained in Articles 46 to 53 of the Investment Firm Regulation (IFR). Investment firms are required to disclose their capital resources, capital requirements, remuneration policies, and practices and governance standards.
The EBA has developed these draft ITS according to Article 54(3) and Article 49(2) of the IFR which mandates the EBA to develop a reporting framework and disclosure requirements for investment firms.
The draft ITS set out the main aspects of the new reporting framework in relation to the calculation of own funds, levels of minimum capital, concentration risk, liquidity requirements and the level of activity in respect of small and non-interconnected investment firms. The draft ITS propose a different set of templates to cover small and non-interconnected investment firms, and to include information that is proportionate to their size and complexity.
The draft ITS will be submitted to the European Commission for endorsement before being published in the Official Journal of the EU. The EBA will also develop the data point model, XBRL taxonomy and validation rules based on the final draft ITS. The disclosure requirements will be applicable from 26 June 2021. The first reference date for the application of the reporting ITS is expected to be 30 September 2021 for class 2 investment firms and 31 December 2021 for class 3 investment firms.