The implementation in France of European rules on information to be disclosed by the competent authorities (Supervisory Disclosure)
Transparency is an essential factor in the effective supervision of investment firms. It is all the more significant at European level as it is important for the proper functioning of financial markets that the Community provisions are implemented in a harmonized manner and that supervisory practices converge.
Thus, Directive (EU) 2019/2034 on access to the activity of investment firms and the prudential supervision of investment firms (Investment Firms Directive, IFD) requires the competent authorities to publish certain information so that the internal investment firms market can operate with increasing effectiveness and citizens of the Union are afforded adequate levels of transparency. The information published should be sufficient to enable a meaningful comparison of the approaches adopted by the competent authorities of different Member States.
Article 57 (1) (a) of Directive (EU) 2019/2034 specifies the different categories of information that supervisors must publish:
- Text of laws, regulations and administrative provisions and general guidance adopted in each Member State in terms of prudential regulation;
- Conditions of exercise of options and national discretions available in Community legislation;
- General criteria and methods that supervisors apply for the purpose of the supervisory review and evaluation process;
- Aggregate statistical data on key aspects of the implementation of the prudential framework in each Member State.
To ensure a harmonized implementation of the IFD transparency requirements, and considering more broadly the importance of readability and comparability of the rules and procedures within a context of increasing complexity of prudential rules, the European Banking Authority (EBA) has published in June 2021 an Implementing Technical Standards on the format, structure, contents and annual publication date of the information to be disclosed by competent authorities. The European Commission has adopted these technical standards in the form of its Implementing Regulation (EU) 2022/389 of 8 March 2022. This regulation defines a common publication format designed to facilitate access to published information and enable their comparison. Under this regulation, the information provided by European supervisors must be consistent in substance and in form and updated annually.
The solution chosen by the European Banking Authority is based on the use of the Internet with a two-tier architecture. At European level, summary tables are developed and posted on the website of EBA. These tables show essential information and allow comparison between countries. They are connected to the Internet websites of the members of EBA, which contain all the information required by the IFD, with an organization and a presentation totally similar to those of the EBA website.
The organization of the EBA and national authorities websites follows, under four main headings, the elements referred to in Article 57 (1) of the IFD:
1 - Rules and Guidance: this part contains the texts in force, but also detailed information on more specific issues such as exemptions from the application of prudential requirements, evaluation of internal risk measurement approaches and the process of approval of these approaches...
2 - Options and national discretions (details of the choices made in the implementation process);
3 - Methodology of the process of supervisory review and evaluation process ("Pillar 2" add-ons);
4 - Statistical data on national investment firms sectors, the various risks and the activities of supervisors.
Updated on: 10/31/2022 13:16