Implementation of EBA Guidelines on Related Clients under Article 4(1)(39) of Regulation (EU) No 575/2013 (EBA/GL/2017/15)

NOTICE Implementation of the European Banking Authority (EBA) Guidelines regarding related clients defined in Article 4, paragraph 1, point 39, of Regulation (EU) No 575/2013 (EBA/GL/2017/15)

The Prudential Supervision and Resolution Authority (ACPR) has declared conformity with the European Banking Authority's (EBA/GL/2017/15) guidelines regarding related clients defined in Article 4, paragraph 1, point 39, of Regulation (EU) No 575/2013.

These guidelines detail, in particular, the methods for assessing the criteria of control and economic interdependence, which are set out in paragraphs (a) and (b) of the aforementioned article. Furthermore, the guidelines establish the applicability of the concept of "groups of related clients" to the entirety of Regulation (EU) No 575/2013. They also provide that institutions must justify the reasons why they consider two clients to be unrelated despite the applicability of the control and economic interdependence criteria.

For the application of these guidelines, institutions must comply with the provisions on internal control and concentration risk monitoring mentioned in the Order of November 3, 2014, relating to internal control. Finally, for the communication of information to supervisors (reporting), economic dependence should only be taken into account if it is of a nature to generate related behavior among counterparties acting as depositors or creditors.

These guidelines will be applicable, as of January 1, 2019, to credit institutions and investment firms, which must do everything in their power to comply with them, in accordance with the provisions of Article 16 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council of November 24, 2010, establishing a European Supervisory Authority (European Banking Authority).