On Sep. 19, ESP CNMV adopted EBA guidelines on test application.
ESP CNMV announced it adopted EBA guidelines on application of group capital test to investment services firm groups in accordance with article 8 of IFR.
Follows EBA Jul. 2024 translated guide on application of group capital test #180260.
Overview
ESP CNMV notified EBA of compliance with the mentioned guidelines published on Apr. 11, 2024 in English version, Jul. 16, 2024 translated into each of EU official language.
Guidelines specify how competent authorities should apply art 8.1 and art 8.4 IFR.
Those allow groups of investment firms to be authorized to apply group capital test or to hold amount of own funds lower than calculated in accordance with art 8.3 of IFR.
They set out common criteria competent authorities should take into account when considering granting such authorization to set exemptions, while allowing sufficient degree of flexibility to apply principle of proportionality to case-by-case assessment.
Inter alia, they detail conditions necessary to consider group of investment firms is sufficiently simple, define when it poses significant risks for clients or the market.
Finally, they specify competent authorities must review, update/revoke authorizations already granted at date of application of these regardless of duration of authorization.
Effectiveness
The guidelines will apply from Jan. 1, 2025.
Regulators
ESP CNMV
Entity Types
IA; IHC; Inv Co
Reference
PR 9/19/2024; IFD/IFR Dir 2019/2034, Reg 2019/2033
