Circular NBB_2024_21 / Circular implementing EBA guidelines on the application of the group capitalisation test for investment firm groups under Article 8 of Regulation (EU) 2033/2019

NBB_2024_21 – 17 December 2024 Circular – Page 1/2 boulevard de Berlaimont 14 – BE-1000 Brussels tel. +32 2 221 54 65 company number: 0203.201.340 RPM Brussels www.bnb.be

Circular
Brussels, 17 December 2024
Reference: NBB_2024_21 your correspondent:
Nicolas Staner tel. +32 2 221 44 69 nicolas.staner@nbb.be

Circular implementing the EBA guidelines on the application of the group capitalisation test for investment firm groups in accordance with Article 8 of Regulation (EU) 2033/2019

Scope
This circular applies to stock exchange firms that are a Belgian parent investment firm in the Union, Belgian parent investment holding companies and Belgian parent mixed financial holding companies in the Union at the head of an investment firm group where the National Bank of Belgium has been designated as the consolidated supervisor of the investment firm group (hereinafter "investment firm group").

Summary/Objectives
In accordance with Article 16 of Regulation (EU) No 1093/2010 1, the European Banking Authority (EBA) published guidelines (EBA/GL/2024/03) concerning the authorisation for investment firm groups to apply the group capitalisation test as provided for in Article 8 of Regulation (EU) 2019/2033 ("IFR") 2.

These guidelines aim to assist competent authorities in assessing the conditions for authorisation allowing investment firm groups, in place of regulatory consolidation, to apply the group capitalisation test ("authorisation to apply the group capitalisation test") or to hold an own funds amount lower than the amount calculated in accordance with Article 8(3) of the aforementioned IFR Regulation ("authorisation for lower amount").

These guidelines apply from 1 January 2025.

1 Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC. 2 REGULATION (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019 on prudential requirements for investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/2014 and (EU) No 806/2014.

National Bank of Belgium
Eurosystem

Circular – Page 2/2 NBB_2024_21 – 17 December 2024

Dear Sir, Dear Madam,

The National Bank of Belgium ("NBB") wishes to indicate, by means of this circular, that the EBA guidelines of 11 April 2024 (EBA/GL/2024/03) aiming to assist competent authorities in assessing the conditions for authorisation allowing investment firm groups that are sufficiently simple and do not pose significant risks to clients and to the market to apply, in place of regulatory consolidation, the group capitalisation test provided for in Article 8(1) of Regulation (EU) 2019/2033 ("authorisation to apply the group capitalisation test") or to hold an own funds amount lower than the amount calculated in accordance with Article 8(3) of the said Regulation ("authorisation for lower amount") are integrated into its supervisory practice.

These guidelines first provide the conditions for considering that an investment firm group is - or is deemed to be - sufficiently simple and not posing significant risks to clients and to the market for the purposes of the authorisation to apply the group capitalisation test.

The conditions for authorisation for the application of a lower own funds amount are also provided.

A section is then devoted to the information necessary to provide to allow the assessment of the application for authorisation to apply the group capitalisation test and, where applicable, for authorisation for a lower amount.

Finally, the conditions for maintaining or withdrawing the authorisations obtained by the investment firm groups concerned are specified.

These guidelines apply from 1 January 2025.

A copy of this circular is sent to the auditor(s), approved auditor(s) of your establishment.

Please accept, Sir, Madam, the assurance of my distinguished consideration.

Pierre Wunsch
Governor

Appendix:
EBA Guidelines (EBA/GL/2024/03) of 11/04/2024 on the application of the group capitalisation test for investment firm groups in accordance with Article 8 of Regulation (EU) 2033/2019.