Final draft technical standards on the prudential treatment of investment firms
On 16 December 2020, the European Banking Authority (EBA) published a package of seven final draft Regulatory Technical Standards (RTS) on the prudential treatment of investment firms.
These final draft RTS will ensure a proportionate implementation of the new prudential framework for investment firms considering the different activities, sizes and complexity of investments firms. With the entry into force of the Investment Firms Regulation (IFR) and Directive (IFD), most of the investment firms authorized under the Markets in Financial Instruments Directive (MiFID) will be subject to a new prudential regime, different and independent from the Capital Requirements Regulation (CRR) applicable today.
The technical standards included in this package set out the main aspects of the new prudential regime in relation to the calculation of the regulatory capital requirements. They provide further technical clarifications on the methodologies to be applied by all types of investment firms, including investment advisors, portfolio managers, execution brokers, firms trading on own account and commodity dealers.