EBA publishes final guidelines on the review and evaluation process for investment firms
  • Tuesday, 13 September 2022

EBA publishes final guidelines on the review and evaluation process for investment firms

The EBA, jointly with the European Securities and Markets Authority (ESMA), published the final guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) for investment firms. They set out the common process and criteria for the assessment of the main SREP elements, including:

  • business model;
  • governance arrangements and firm-wide controls;
  • risks to capital and capital adequacy;
  • liquidity risk and liquidity adequacy.

The EBA also published the final draft Regulatory Technical Standards (RTS) on Pillar 2 add-ons for investment firms.