Page 92 - EBA 2015.1815 Annual report 2014 web 2

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E U R O P E A N B A N K I N G A U T H O R I T Y
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The EBA will also start work on guidelines re-
lating to stress tests and cooperation between
schemes and authorities in the Union.
Establishing resolution authorities
2015 will be the first year of establishment
of resolution authorities for many Member
States, so the EBA will continue to support
resolution authorities with focused train-
ing, benchmarking and peer reviews. The
EBA will seek to actively work with all reso-
lution authorities (including the SRB) in the
EU to deliver harmonised practices and good
mechanisms for cross border cooperation. It
will seek to maximise synergies and avoiding
overlapping work as resolution authorities be-
gin to exercise their roles and commence the
preparation of resolution strategies and plans.
Regulatory developments
Investment firms
One of the broader projects that the EBA will
undertake in 2015 is the review of the overall
prudential treatment of investment firms. In-
vestment firms are categorised according to
the type of services they provide and the type
of client for these services. These firms are
subject to many different and, on occasions,
overlapping legal requirements (stemming
from CRR/CRD, MiFID and also UCITS or Al-
ternative Investment Fund Managers Directive
(AIFMD)) that apply fully or partially depending
on the type of firm. This legal setting is very
complex and the regulatory framework has
posed many challenges.
The Commission has issued a call for advice
to the EBA and ESMA to thoroughly review the
current treatment with the view of improving it,
as well as to address some of the exemptions
and transitional periods in specific areas set out
in CRR. The advice will focus on a review of the
current categorisation of the firms and also on
the specific regulatory requirements which may
be applicable, such as whether and how the
LCR should be applied to investment firms, or
the convenience of establishing a specific treat-
ment for firms that provide the activities and
services in relation to commodity derivatives.
The EBA will analyse the overall risk frame-
work and, in order to provide a meaningful
assessment, will undertake a data collection
exercise to get an overview of the current mar-
ket. The EBA is expected to finalise its work by
September 2015.
Assessment and monitoring of SMEs
As part of the mandate specified in Article 501
CRR, the EBA will work during 2015 to produce
a report on SMEs, focusing on the evolution of
the lending trends and conditions for SMEs as
well as the effective riskiness of Union SMEs
over a full economic cycle.
The EBA will also assess the consistency of
own funds requirements, taking into account
in particular the capital discount granted by
Article 501 CRR for SMEs exposures as well as
the trends in SMEs lending and their riskiness.
The report will be delivered in Q1 of 2016.
In addition to the SMEs report, during 2015
the EBA will begin development of indicators
to monitor SMEs lending trends in the EU on
an ongoing basis as part of its mandate ‘to
monitor and assess market developments in
the area of its competence, including where
appropriate trends in credit, in particular, to
households and SMEs’ in Article 8(1)(f) of the
EBA founding regulation (Regulation (EU) No
1093/2010).
Fostering communication between auditors
and supervisors
On 27 May 2014, the audit reform package,
which includes the amending Directive (
37
)
and the new Regulation (
38
) on statutory au-
dits, was published in the Official Journal of
the EU. The two texts will be applicable by 17
June 2016. The EBA is assigned tasks to take
current supervisory practices into account
and issue guidelines addressed to compe-
tent authorities supervising credit institu-
(
37
) Directive 2014/56/EU of the European Parlia-
ment and of the Council of 16 April 2014 amend-
ing Directive 2006/43/EC on statutory audits
of annual accounts and consolidated accounts
].
(
38
) Regulation (EU) No 537/2014 of the European
Parliament and of the Council of 16 April 2014 on
specific requirements regarding statutory audit of
public-interest entities and repealing Commission
Decision 2005/909/EC
.