Regulatory Alerts2017-10-20
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Recommendation of the European Systemic Risk Board of 20 October 2017 amending Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures (ESRB/2017/4)
The document amends Recommendation ESRB/2015/2 by requiring activating authorities to propose a maximum materiality threshold when requesting reciprocation of macroprudential measures. It defines the materiality threshold as a quantitative level below which an individual financial service provider's exposure is considered non-material, allowing for a de minimis exemption. Reciprocating authorities may apply the proposed threshold, set a lower one, or apply the measure without a threshold, while monitoring for regulatory arbitrage and reporting exemptions to the ESRB.
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