On Nov. 13, ROM ASF issued draft regarding capital group test guide.
ROM ASF consulted on draft norm for application of the EBA guideline on application of capital test at group level for groups of investment firms in line with art 8 of IFR.
Follows EBA Jul. 2024 translated guide on application of capital group test, #180260.
Overview
Draft envisages implementation at level of secondary legislation of EBA/GL/2024/03.
Per art 7 IFR, parent investment firms must meet capital rules per consolidated basis.
Due to the possibility of derogation from standard method of prudential consolidation provided for in art. 8 of IFR, investment firms can calculate their capital requirements at group level based on the capital test at group level.
The guidelines specify how competent authorities must implement art 8 para 1 and 4 of IFR to allow groups of investment firms to apply capital test at level of the group.
Or to hold own funds with value lower than amount calculated in line with art 8 para 3.
Capital test at group level may be allowed for group structures considered simple, if no significant risks to customers or market to be generated by group of investment firms as a whole, which would otherwise require supervision on a consolidated basis.
Thresholds and objective criteria are established at level of the guide which competent authorities must take into account to assess if conditions for exemption are met.
To implement guidelines parent companies of groups of investment firms subject to consolidated supervision by POR ASF make necessary information available to it, upon request and/or any documents requested.
Effectiveness
The consultation closes on Nov. 23, 2024; comments via Consultation Portal only.
Norm to be published in official gazette Part I and enter into force on Jan. 1, 2025.
Dec. 2024 Norm Issued
On Dec. 10, 2024, ROM ASF updated IFR/IFD site with issuance of Norm 24/2024.
It implements the guidelines; parent companies of investment firm groups subject to consolidated supervision by POR ASF will make available to it, upon request, necessary information and/or any documents requested in this regard.
Norm was published in official gazette of Dec. 9, will enter into force on Jan. 1, 2025.
Regulators
ROM ASF
Entity Types
IA; IHC; Inv Co
Reference
PR 12/10/2024; OG 1232, Norm 24/2024, 12/9/2024; CP, PR, 11/13/2024; Gd EBA/GL/2024/03; IFD/IFR Dir 2019/2034, Reg 2019/2033; Citation: Norm 24/2024;
