Regulatory Alerts2023-04-19
Added · Updated
Joint EBA and ESMA Guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) under Directive (EU) 2019/2034
These guidelines establish common procedures and methodologies for the supervisory review and evaluation process (SREP) for class 2 and class 3 investment firms under Directive (EU) 2019/2034. Competent authorities must apply a common SREP framework comprising business model analysis, internal governance assessment, risk-to-capital assessment, and risk-to-liquidity assessment, utilizing a four-point scoring system for risks and viability. The guidelines specify that investment firms are classified into four categories to determine the frequency and intensity of supervisory engagement, and mandate the determination of additional own funds requirements and specific liquidity requirements where necessary. The guidelines apply from 19.06.2023.
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