Regulatory Alerts2024-03-13
Added · Updated
Commission Delegated Regulation (EU) 2024/1771 on prudential consolidation of investment firm groups
The European Commission adopts regulatory technical standards specifying the scope and methods for prudential consolidation of investment firm groups under Regulation (EU) 2019/2033. The regulation defines parent-subsidiary links, unified management, and horizontal links to determine which entities must be included in consolidation, while allowing exemptions for small entities with total assets below EUR 10 million or 1% of consolidated assets. It mandates full consolidation for most entities and aggregation for others, while establishing specific calculation rules for own funds requirements, fixed overheads, and K-factors to prevent double-counting and ensure accurate risk assessment.
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