Supervision release 31 December 2014

Financial sector reporting on asset encumbrance – Regulations and guidelines into force on 31 December 2014

The Financial Supervisory Authority has on 4 December 2014 issued regulations and guidelines 5/2014 on asset encumbrance reporting. The regulations and guidelines will enter into force on 31 December 2014.

Article 100 of the EU's Capital Requirements Regulation 575/20131 provides that institutions shall report to the competent authorities the level, at least in aggregate terms, of their repurchase agreements, securities lending and all forms of encumbrance of assets. This reporting requirement will be incorporated in the Commission's Implementing Regulation (EU) No 680/20142

The Implementing Regulation constitutes binding legislation directly applicable in the member states. The purpose of these regulations and guidelines is to provide further guidance to supervised entities on submitting the supervisory information based on the Implementing Regulation to the Financial Supervisory Authority.

Information concerning the first reference date 31 December 2014 shall be submitted at the latest on 11 February 2015. The information specified in the different parts of the data collection shall be submitted as follows:

  • the information specified in Parts A, B and D shall be reported with a quarterly frequency;
  • the information specified in Part C shall be reported with an annual frequency;
  • the information specified in Part E shall be reported with a semi-annual frequency.

Supervised entities are not required to report the information in Parts B, C or E of the data collection where they meet each of the following conditions:

  • the total assets, as calculated in accordance with point 1.6, paragraph 10 of Annex XVII of the Commission Implementing Regulation, are less than EUR 30 billion;
  • the asset encumbrance level, as calculated in accordance with point 1.6, paragraph 9 of Annex XVII of the Commission Implementing Regulation, is below 15%.

Supervised entities are only required to report the information in Part D of the data collection if they have issued the bonds referred to in the first subparagraph of Article 52(4) of UCITS Directive 2009/65/EC3.

For further information, please contact

Samuli Koivisto, Risk Expert, tel +358 10 831 5228 or samuli.koivisto(at)fiva.fi

Annexes

1 Regulation (EU) No 575/2013 (32013R0575) of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012, OJ L 176, 27.6.2013, p. 1-337.
2 Commission Implementing Regulation (EU) No 680/2014 (32014R0680) of 16 April 2014 laying down implementing technical standards with regard to supervisory reporting of institutions according to Regulation (EU) No 575/2013 of the European Parliament and of the Council, OJ L 191, 28.6.2014, p. 1-1861.
3 Directive 2009/65/EC (32009L0065) of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), OJ L 302, 17.11.2009, p. 32-96.