On 11 February 2022, the European Banking Authority (EBA) published an opinion on the amendments proposed by the European Commission as regards the EBA final draft regulatory technical standards (RTS) specifying the methodology for calculating the fixed overheads requirements for investment firms in the context of the implementation of the Investment Firms Regulation (IFR). Despite having identified a substantive change in the Commission’s version of the RTS, the EBA considers the amendments continue to strike a good balance between the flexibility and risk sensitivity required for the calculation of the fixed overheads requirement and the need for a harmonised regulatory framework.
The Commission’s version of the draft RTS, compared to the final draft RTS submitted by the EBA in December 2020, includes a substantive change, which represents an additional point for deduction from total expenses on the list detailed in the draft RTS, and is specifically aimed at market makers. The Commission’s proposal enables investment firms acting as market makers to benefit from the principle of deduction of trading fees also when these are not passed directly to clients. The EBA agrees with the proposed amendment, while also proposing an editorial change meant to preserve the consistency with the reading of the IFR.