EBA Opens Consultation on Draft RTS for Investment Firm Reclassification
The European Banking Authority is seeking input on revised technical standards for investment firms crossing the €30 billion asset threshold, impacting both calculation and reporting under amended Capital Requirements Directive rules.
Key Takeaways
- The EBA is consulting on draft RTS for reclassifying investment firms as credit institutions once the €30 billion asset threshold is exceeded.
- The draft RTS define calculation methodology, reporting obligations, and criteria for waivers under recent CRD amendments.
- Stakeholder feedback is open until 25 November 2026, with a virtual hearing scheduled for 30 September 2026.
- Firms must prepare for enhanced reporting and possible changes in authorisation status under the revised framework.
The European Banking Authority (EBA) has launched a consultation on three draft Regulatory Technical Standards (RTS) concerning the reclassification of investment firms as credit institutions under the Capital Requirements Directive (CRD). These proposals follow the 2024 CRD amendments and aim to clarify calculation and reporting of the €30 billion total assets threshold, as well as waiver conditions for competent authorities. The consultation period ends on 25 November 2026.
Focus of the Draft RTS Consultation
The EBA’s consultation directly addresses the procedures for investment firms in the European Union that exceed the €30 billion assets threshold. Under current CRD provisions, such firms must obtain authorisation as credit institutions rather than continue operating under the MiFID investment firm regime. The revised RTS detail:
- The methodology for calculating total assets at both solo and group levels
- Reporting obligations where entity assets cross the relevant thresholds
- The process and criteria for competent authorities to grant a waiver from reclassification
These changes are designed to align with the risk-based approach underlying recent regulatory updates and to ensure proportionality in supervision.
Calculation and Reporting Requirements for €30 Billion Threshold
In line with Article 8a(6)(b) of the CRD, the draft RTS clarify which entities and exposures count towards the €30 billion assets measurement. The updated methodology reflects the 2024 CRD amendments, which provided further guidance on the scope of consolidation and the types of assets to be included both at the solo and group level.
For reporting purposes, Article 55(5) of the Investment Firms Regulation (IFR) mandates that investment firms with total assets above €5 billion must adhere to specified reporting formats. The new RTS include revised templates and instructions to ensure consistency with the CRD6 update. Investment firms are required to submit data regularly to national competent authorities using these templates, aiding regulatory monitoring and threshold enforcement.
RTS on Waiver Assessment Factors
For the first time, the EBA is consulting on draft RTS under Article 8a(7) of the CRD—outlining the factors competent authorities must evaluate when considering a waiver from the requirement to hold a credit institution authorisation. A firm granted this waiver can remain regulated as an investment firm despite exceeding the asset threshold. The consultation paper describes these factors, including:
- The firm's business model and risk profile
- Effective risk management and governance systems
- The nature and complexity of services provided
- The impact on financial stability and market integrity
Firms interested in such waivers must supply thorough documentation demonstrating compliance with the prescribed factors.
Consultation Process and Engagement Opportunities
The EBA’s public consultation is open until 25 November 2026, with all stakeholders invited to contribute via the EBA’s official consultation page. A virtual public hearing will be held on 30 September 2026 at 10:00 CEST; participants must register by 25 September 2026 at 16:00 CEST. The EBA will publish all submitted comments unless a confidentiality request is made.
"The revised RTS contribute to a more proportionate and risk-based application of the framework for investment firms." — European Banking Authority statement
The Consultation Paper, updated reporting templates, and detailed instructions are available for review on the EBA’s website. These documents serve as the main reference points for feedback during the consultation period.
Legal Framework and Authority Mandate
The EBA has drafted these standards under
- Article 8a(6)(b) of the CRD, covering total assets calculation for threshold determination
- Article 55(5) of the IFR, stipulating reporting requirements for firms with assets above €5 billion
- Article 8a(7) of the CRD, specifying competent authorities’ role in considering waiver requests
These legal bases ensure that both method and criteria are developed within the boundaries set by EU lawmakers and supervisory authorities.
Implications for Investment Firms and B2B Stakeholders
The draft RTS will affect investment firms operating across the EU with significant balance sheets, requiring many to reassess their authorisation status and enhance their asset calculation and reporting capabilities. For platform vendors, compliance and risk teams, the consultation highlights the continued alignment of reporting formats and regulatory expectations—necessitating close attention to the technical instructions published by the EBA.
Stakeholders are encouraged to monitor the regulation section for updates as the consultation progresses and final RTS are adopted.
Frequently Asked Questions
What triggers the reclassification of an investment firm as a credit institution?
An investment firm is required to reclassify as a credit institution when its total assets exceed the €30 billion threshold, according to the Capital Requirements Directive. This process is clarified in the EBA's draft RTS and follows the updated calculation methodology set in the 2024 amendments.
How should investment firms calculate total assets for the threshold?
Investment firms must calculate total assets at both solo and group levels, following the methodology clarified in the revised RTS. The calculation includes guidance from the 2024 CRD amendment on which entities and exposures should be consolidated for this purpose.
What are the new reporting requirements for investment firms under the RTS?
Firms with total assets above €5 billion are subject to updated reporting obligations, using revised templates and instructions aligned with the CRD6 update. These reports must be submitted to competent authorities to monitor compliance with thresholds.
Can investment firms obtain a waiver from becoming a credit institution?
A waiver is possible if competent authorities, following the factors set in the draft RTS, find that the firm's business model, risk management, and impact meet prescribed conditions. If granted, the firm may continue operating under an investment firm authorisation even after exceeding €30 billion in assets.
How can stakeholders participate in the EBA consultation process?
Interested parties can submit feedback via the EBA's website by 25 November 2026 and may register for the virtual public hearing on 30 September 2026. Submitted comments will be publicly available unless confidential treatment is requested.
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About the author
Eleanor Whitfield
Regulatory Affairs Correspondent
Eleanor Whitfield tracks gambling legislation, licensing decisions, and regulator enforcement across key markets — from the UKGC, MGA, and Germany's GGL to Spain's DGOJ and the state-by-state map in the Americas. The reporting answers three questions precisely: what changed, where, and who it affects, with jurisdictions, effective dates, and penalty figures named exactly as published. Compliance officers and operators read Eleanor Whitfield to know which rulebook moved before their next board meeting.
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