On Sep. 17, FINFSA will comply with EBA group capital requirement.
FINFSA will comply with EBA's instructions on the application of the group capital requirement to groups of investment firms in accordance with Reg 2019/2033, Art 8.
Follows EBA Apr. 2024 guidelines on application of group capital test, see #180260.
Overview
Specify how competent authorities should implement IFD/IFR Reg 2019/2033 Art 8(1), (4) in order for groups consisting of investment firms to apply group capital requirements or to hold less than the amount calculated in accordance with Article 8(3) amount of own funds ('permission for a smaller amount').
Competent authority should not grant a permit for the group's capital requirements or a permit for a smaller amount, even if conditions laid down in the EBA's instructions are met, if it considers consolidation in accordance with the principle of prudence or a larger amount of own funds to be appropriate for relevant investment company group.
Effectiveness
Application of the instruction begins on Jan. 1, 2025.
