EBA and ESMA consult on SREP framework
The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have launched a public consultation on their draft Guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP). The SREP procedures are a regulatory tool intended to ensure reliable monitoring and assessment of credit institutions. At the same time, the EBA is consulting on draft Regulatory Technical Standards (RTS) on the additional own funds requirements that could be determined by competent authorities for investment firms. Both of these have emerged from Europe’s Investment Firms Directive (IFD) and aim at consistent supervisory practices with regard to the review and evaluation of investment firms. There is a lot of interesting detail to be considered here, and we would argue that there is a discussion to be had about digitisation. The consultations are open until 18 February 2022.
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