The European Banking Authority (EBA) has amended its supervisory reporting framework for investment firms to align with the updated capital requirements regulation (CRR3) and the changes outlined in the implementing technical standards (ITS) for supervisory reporting by credit institutions. The amendments, which were on Tuesday 3 December 2024, focus on enhancing supervisory reporting requirements concerning counterparty credit risk, market risk (K-NPR) and credit valuation adjustment (CVA) risk.

The revised framework enables investment firms to report the same information as credit institutions, as specified in the common reporting (Corep) templates. The amendments align investment firms’ reporting with that of credit institutions by introducing cross-references to the applicable ITS for supervisory reporting by credit institutions. This adjustment ensures that the reporting obligations of investment firms are consistent with the updated regulatory framework following the CRR3 revisions.

The changes to the reporting framework address various risk areas, particularly counterparty credit risk, market risk and CVA risk, which are now subject to updated reporting requirements under the amended ITS. The EBA noted that these modifications were necessary to reflect the latest developments in financial regulation and to maintain consistency across the EU financial reporting landscape.

Looking ahead, the EBA plans to release a technical package later in December 2024. This package will include data point modelling, validation rules and taxonomy, which will be used by investment firms to submit their supervisory reporting information to the relevant supervisory authorities. The technical package is expected to facilitate the smooth implementation of the new reporting requirements, ensuring that investment firms comply with the updated regulatory framework.