The European Banking Authority (EBA) has launched their public consultation on their XBRL Taxonomy, which marks another milestone towards CRDIV implementation.
This consultation is on the draft XBRL Taxonomy and covers; the data items, business concepts, relations and validation rules described by the EBA Data Point Model(s) (DPM) on supervisory reporting in the technical format of an XBRL taxonomy.
We intend to collect financial reports (COREP and FINREP) from firms as set out by the Capital Requirements Directive (CRDIV), using a reporting language called XBRL (eXtensible Business Reporting Language). The report will be submitted through our GABRIEL system.
The XBRL Taxonomy consultation is available on the EBA website.
Implementing technical standard
On 26 July 2013, the EBA published an implementing technical standard regarding FINREP and COREP which finalises the rules surrounding harmonised reporting, pending publication in the Official Journal of the EU. These rules are directly binding on CRD IV firms as an EU regulation. Accordingly, relevant FCA prudentially regulated and PRA prudentially regulated firms should be aware of this, and carefully consider the content when ensuring compliance with and building systems to implement COREP, and where applicable, FINREP. The implementing technical standard is available on the EBA website.
Legislative package published in the Official Journal of the European Union
On Thursday 27 June the legislative package known as “CRD IV”, covering prudential rules for banks, building societies and investment firms in the European Union, was published in the Official Journal of the European Union. The bulk of the rules contained in the legislation will apply from 1 January 2014.
This is in line with the expected timetable set out by the Financial Conduct Authority (FCA) in April.
The FCA will consult later this summer on the changes to the FCA’s rules to remove current FCA provisions covered in the Regulation and to implement the Directive and relevant discretions provided in the Regulation. The FCA will also consult on the specific issues related to the procedure for transitioning, as appropriate, existing waivers.
FCA update in April
On 16 April 2013 the European Parliament adopted the legislative package known as “CRD IV", covering prudential rules for banks and investment firms in the European Union. The FCA is now setting out its planned timetable for implementation.
The legislation was adopted by the Parliament today, following the conclusion of negotiations between the Council, the Parliament and the European Commission in March. The final text remains subject to a detailed review of legal drafting and translation into other official EU languages, and formal adoption by ministers. This is generally a formality and the FCA expects the substance of the legislation adopted today to remain unchanged.
According to the legislation adopted today, if translation can be completed in time for the legislation to be published in the Official Journal before 1 July 2013, implementation of CRD IV will be from 1 January 2014. If it is published from 1 July 2013, implementation will be from 1 July 2014. On the basis of the indicated desire of the EU institutions, the FCA is currently planning on the basis of 1 January 2014 implementation.
In order to facilitate this, the FCA is intending to undertake two consultations on elements of the framework. The main consultation, which is intended to be published in Summer 2013, will set out the changes to the FCA’s rules to remove current FCA provisions covered in the new Regulation and to implement the Directive and relevant discretions provided in the Regulation. It should be noted that the Regulation will, in substance, replace the majority of the current capital requirements provisions in the FCA Rulebook (which can be found broadly in BIPRU and GENPRU).
The FCA also intends to consult on the specific issues related to the procedure for transitioning, as appropriate, existing waivers, which is expected to be conducted before or as part of the main consultation.
These consultations will set out the FCA’s approach to implementation in those areas the FCA is responsible for. In the meantime firms should discuss any queries or issues, in the first instance, with their supervisor or through their usual FCA contact.
NB: CRD IV consists of the Directive 'on the access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms' and the Regulation 'on prudential requirements for credit institutions and investment firms'.