Investment firms | European Banking Authority (2024)

Investment firms authorised under the Markets in Financial Instruments Directive (MiFID) provide a range of services and activities to investors in financial markets. These services are essential for the functioning of the financial markets and include, among others, the reception and transmission of orders, the provision of investment advice, discretionary portfolio management and trading on own account.

The population of investment firms across the EU is diverse and firms vary greatly in terms of size, business model, risk profile, complexity and interconnectedness, ranging from one-person companies to large internationally active groups.

Taken into account their diversity, as well as their specific risk profiles not always properly captured by the banking prudential framework, the European Commission developed a new prudential framework, consisting of the Directive (EU) 2019/2034 (IFD) and the Regulation (EU) 2019/2033 (IFR).

The new framework aims at creating an appropriate and proportional framework for investment firms, while maintaining systemic investment firms under the prudential requirements and supervision of the Capital Requirements Regulation and Capital Requirements Directive (CRR/CRD). This new framework aims at ensuring the safe functioning of investment firms, strengthening their soundness and stability and better managing their risks towards customers, market and the firms themselves.

Under the investment firms’ prudential framework, a significant number of mandates have been given to the EBA to deliver regulatory products on the following areas: thresholds and criteria for investment firms to be subject to the CRR, capital requirements and capital composition, the supervisory review process, supervisory reporting, disclosure requirements, variable remuneration, governance, mandates related to economic, social and governance (ESG) risks and supervisory convergence.

The EBA’s complete work plan for delivering on those regulatory products is outlined in the IFD-IFR Roadmap.

Documents

  • Roadmap on Investment firms

Links

  • Supervisory reporting
  • Remuneration
  • Transparency and Pillar 3

Technical Standards, Guidelines & Recommendations

Technical standards

Final draft RTS/ITS adopted by the EBA and submitted to the European Commission

Regulatory Technical Standards on the specific liquidity measurement for investment firms

Adopted and published in the Official Journal of the EU

Regulatory Technical Standards on disclosure of investment policy by investment firms

Final draft RTS/ITS adopted by the EBA and submitted to the European Commission

Regulatory Technical Standards on prudential requirements for investment firms

Adopted and published in the Official Journal of the EU

Regulatory Technical Standards on own funds requirements for investment firms

Guidelines on the application of the group capital test for investment firms

Final and translated into the EU official languages

Guidelines on internal governance for investment firms

Final and translated into the EU official languages

Guidelines on remuneration policies for investment firms

Opinions, Reports and other Publications

Opinions

11 February 2022

EBA Opinion on modified RTS on FOR.pdf

Opinion on the European Commission’s amendments relating to the final draft Regulatory Technical Standards for own funds requirements for investment firms

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1 July 2021

EBA OP 2021 08 - EBA Opinion on no action regarding prudential requirements for certain investment firms.pdf

Opinion on appropriate supervisory and enforcement practices for the process of authorising investment firms as credit institutions

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29 September 2017

Annex to the EBA Opinion EBA-Op-2017-11.pdf

Annex to the EBA Opinion EBA-Op-2017-11

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29 September 2017

EBA Advice on New Prudential Framework on Investment Firms (EBA-Op-2017-11).pdf

EBA Advice on New Prudential Framework on Investment Firms (EBA-Op-2017-11)

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27 October 2016

Opinion of the European Banking Authority on the First Part of the Call for Advice on Investment Firms (EBA-Op-2016-16).pdf

Opinion of the European Banking Authority on the First Part of the Call for Advice on Investment Firms (EBA-Op-2016-16)

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14 December 2015

EBA-Op-2015-20 Report on investment firms.pdf

EBA-Op-2015-20 Report on investment firms

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28 June 2022

EBA DC 446 Decision concerning investment firms reporting by CAs to the EBA.pdf

Decision concerning investment firms reporting by CAs to the EBA

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24 October 2022

EBA report on incorporating ESG risks in the supervision of investment firms.pdf

Report on incorporating ESG risks in the supervision of investment firms

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31 May 2021

EBA IFR further instruments and funds list_Q2 2021.xlsx

IFR further instruments and funds list (Q2 2021)

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6 July 2017

EBA Data Collection MiFID IFs - supplementary.xlsx

EBA Data Collection MiFID IFs - supplementary

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6 July 2017

EBA Data Instructions MiFID IFs - supplementary.pdf

EBA Data Instructions MiFID IFs - supplementary

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20 December 2016

EBA Data Instructions for Commodity Derivatives Firms.pdf

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20 December 2016

EBA Data templates for Commodity Derivatives Firms Final.xlsx

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3 October 2016

Data Collection Q&As

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15 July 2016

EBA Data Collection UCITS AIFMD.xlsx

EBA Data Collection UCITS AIFMD

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15 July 2016

EBA Data Instructions MiFID IFs.pdf

EBA Data Instructions MiFID IFs

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15 July 2016

EBA Data Instructions UCITS AIFMD.pdf

EBA Data Instructions UCITS AIFMD

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15 July 2016

EBA Data Collection MiFID IFs.xlsx

EBA Data Collection MiFID IFs

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Investment firms | European Banking Authority (2024)

FAQs

Is the EBA a regulator? ›

The European Banking Authority (EBA) is a regulatory body that strives to maintain financial stability throughout the European Union's (EU) banking industry. It was established in 2010 by the European Parliament, replacing the Committee of European Banking Supervisors (CEBS).

What is the role of the EBA? ›

The EBA is the EU agency tasked with implementing a standard set of rules to regulate and supervise banking across all EU countries. Its aim is to create an efficient, transparent and stable single market in EU banking products.

What are the objectives of the EBA? ›

The EBA is an independent EU agency established in 2011 at the height of the financial crisis. Its objective is to contribute to financial stability across the EU and safeguard the integrity, efficiency and orderly functioning of the EU banking sector.

What does EBA mean in finance? ›

The IMF's Research Department has developed the External Balance Assessment (EBA) methodology for assessing current accounts and exchange rates.

What are the three bank regulators? ›

The regulatory agencies primarily responsible for supervising the internal operations of commercial banks and administering the state and federal banking laws applicable to commercial banks in the United States include the Federal Reserve System, the Office of the Comptroller of the Currency (OCC), the FDIC and the ...

Who is the regulatory authority in U.S. in financial markets? ›

Securities and Exchange Commission (SEC)

It regulates stock exchanges, options markets, and options exchanges in the United States and other electronic securities markets and businesses. It also oversees financial advisors who are not subject to government oversight. Six divisions and 24 offices make up the SEC.

Who falls under EBA? ›

Voting Members
CountryInstitutionName
PortugalBanco de Portugal (Bank of Portugal)Rui Pinto
RomaniaBanca Naţională a României (National Bank of Romania)Adrian Cosmescu
SlovakiaNarodna Banka Slovenska (National Bank of Slovakia)Tatiana Dubinová
SloveniaBanka Slovenije (Bank of Slovenia)Primož Dolenc
24 more rows

Who does EBA apply to? ›

It is applicable to credit institutions, investment firms, payment institutions and electronic money institutions, as well as the Supervisory Authorities themselves.

What is the EBA used for? ›

Ecosystem-based Adaptation (EbA) is a nature-based solution that harnesses biodiversity and ecosystem services to reduce vulnerability and build resilience of human communities to climate change.

How does EBA work? ›

Agreements are reached between employees and the employer and set out your salary and conditions of employment above minimum national standards. Professionals Australia can negotiate these agreements on your behalf or on behalf of yourself and other employees in your workplace.

What is the aim of the EBA? ›

EbA involves the conservation, sustainable management and restoration of ecosystems, such as forests, grasslands, wetlands, mangroves or coral reefs to reduce the harmful impacts of climate hazards including shifting patterns or levels of rainfall, changes in maximum and minimum temperatures, stronger storms, and ...

What was the goal of the EBA? ›

The Emergency Banking Act of 1933 was enacted during the Great Depression to alleviate the economic downturn and stabilize the U.S. financial system.

What is EBA in bank? ›

European Banking Authority (EBA)

What is EBA in financial terms? ›

Economic value added (EVA), also known as economic profit, aims to calculate the true economic profit of a company. EVA is used to measure the value a company generates from funds invested in it.

What are EBA funds? ›

The Global EbA Fund is a catalytic funding mechanism that supports projects that aim to create enabling environments for the uptake and mainstreaming of Ecosystem-based Adaptation to climate change.

Who are the regulators in the financial sector? ›

Regulatory bodies are established by governments or other organizations to oversee the functioning and fairness of financial markets and the firms that engage in financial activity.

What agency is the primary regulator for national banks? ›

Share This Page: The Office of the Comptroller of the Currency (OCC) is an independent bureau of the U.S. Department of the Treasury. The OCC charters, regulates, and supervises all national banks, federal savings associations, and federal branches and agencies of foreign banks.

What is the financial regulatory authority? ›

Financial Regulatory Bodies are the public authorities or government agency that is responsible for exercising autonomous authority over specific areas. Wherein, individuals are engaged in any activity, supervisory, or regulatory capacity.

Which regulators are part of the Council of Financial Regulators? ›

The Council of Financial Regulators (CFR) comprises APRA, ASIC, the RBA and Treasury.

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