EBA consults on RTS for the reclassification of investment firms as credit institutions under CRD IV

The European Banking Authority (EBA) has launched a consultation on three separate draft regulatory technical standards (RTS) relating to the reclassification of investment firms under Directive EU2013/36/EU (CRD IV), when they exceed the EUR 30 billion total assets threshold. Investment firms whose total assets exceed EUR 30 billion are required to obtain credit institution authorisation under CRD IV rather than operating under a MiFID investment firm licence.

Following amendments in 2024 to the CRD IV, which clarified the scope of entities to be included in the calculation of the total assets, the EBA has revised its draft RTS on the methodology for calculating the thresholds and on the related reporting requirements for investment firms to be provided to competent authorities. In addition, the EBA is consulting, for the first time, on draft RTS specifying the factors competent authorities must consider when assessing whether to grant a waiver from the requirement to hold a credit institution authorisation. Where a waiver is granted, the firm may continue to operate under an investment firm authorisation. The deadline for comments is 25 November and the EBA will hold a virtual public hearing on 30 September (the deadline for registration for this is 25 September).

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