Regulatory Alerts2026-09-02 | C798Added · Updated
EBA Consultation Paper on draft Regulatory Technical Standards on reclassification of investment firms as credit institutions
The European Banking Authority launched a Consultation Paper on draft Regulatory Technical Standards regarding the reclassification of investment firms as credit institutions. The draft standards define the methodology for calculating total assets at solo and group levels against the EUR 30 billion threshold, establish reporting requirements for monitoring this threshold, and outline factors for assessing waiver requests from credit institution authorization. Investment firms with total assets exceeding EUR 30 billion are generally required to obtain credit institution authorization under Article 8(a) of the Capital Requirements Directive framework. Stakeholders are invited to submit comments to the EBA by 25 November 2026 and may register for a virtual public hearing on 30 September 2026.
TO : Cyprus Investment Firms (‘CIFs’) FROM : Cyprus Securities and Exchange Commission DATE : 02/09/2026 CIRCULAR No : C798 SUBJECT : EBA issues a Consultation Paper on draft Regulatory Technical Standards on reclassification of investment firms as credit institutions
The Cyprus Securities and Exchange Commission (CySEC) wishes to inform the Cyprus Investment Firms (CIFs) that the European Banking Authority (EBA) launched on 25 August 2026 a Consultation Paper on draft Regulatory Technical Standards (RTS) on reclassification of investment firms as credit institutions (the ‘Consultation Paper’). Specifically:
- The consultation follows amendments introduced through the Capital Requirements Directive (CRD) framework and aims to revise the regulatory standards governing the assessment of whether an investment firm should be authorised as a credit institution.
- The Consultation Paper covers: (a) the methodology for calculating total assets at both solo and group level against the EUR 30 billion threshold, (b) the reporting requirements and information to be submitted by investment firms to competent authorities for monitoring the threshold and (c) the factors and conditions that competent authorities should consider when assessing requests for a waiver from the requirement to obtain a credit institution authorisation.
- Under Article 8(a) of the CRD framework, investment firms whose total assets exceed EUR 30 billion are generally required to obtain authorisation as credit institutions instead of operating under a MiFID investment firm authorisation. The draft RTS seeks to promote a more proportionate, transparent and risk-based application of these requirements.
- Interested stakeholders are invited to submit comments directly to the EBA through its consultation webpage by 25 November 2026.
Page 2 of 2 5. The EBA will also hold a virtual public hearing on 30 September 2026 at 10:00 CEST. Stakeholders may register through this registration link by 25 September 2026. 6. CySEC encourages CIFs to: • review the Consultation Paper and accompanying draft RTS, • assess the potential impact of the proposed requirements on their business model, group structure and prudential reporting processes, • consider participating in the consultation process and • monitor future regulatory developments arising from the finalisation of the RTS. Yours sincerely, Dr. George Theocharides Chairman Cyprus Securities and Exchange Commission
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