The EBA Consults on New Rules for the Reclassification of Investment Firms

The European Banking Authority (EBA) has initiated a consultation on three drafts of Regulatory Technical Standards (RTS) concerning the reclassification of investment firms as credit institutions in the European Union. The process is triggered when an investment firm exceeds the €30 billion threshold in total assets. These proposals aim to clarify the method for calculating total assets, the reporting requirements to the competent authority, and the criteria for obtaining exemptions, in line with the 2024 amendments to the Capital Requirements Directive (CRD). The deadline for submitting comments is November 25, 2026.

€30 Billion Threshold: Application and Calculation Under the CRD

The current regime requires that investment firms exceeding €30 billion in assets must be classified and authorized as credit institutions, moving away from their authorization under MiFID. The 2024 amendments to the CRD specify which entities must be included in the calculation of total assets, providing greater legal certainty and uniformity in supervision.

The EBA, under Article 8a(6)(b) of the CRD, proposes a detailed methodology for calculating the asset level on both individual and consolidated bases. This will enable firms to accurately determine whether they meet the threshold, thus triggering the obligation to apply for new authorization.

Reporting Requirements for Investment Firms

The drafts of the RTS introduce refined reporting obligations for investment firms, particularly those with total assets over €5 billion, in line with Article 55(5) of the Investment Firms Regulation (IFR).

• These firms will be required to periodically report their total assets to the competent authority, using templates and manuals developed by the EBA.
• The aim is to ensure that the information regarding compliance with the threshold is transparent and easily verifiable by national supervisors.

Conditions for Requesting Exemption from Reclassification

For the first time, the EBA consults on factors that competent authorities should consider when evaluating a request for exemption from the requirement to obtain authorization as a credit institution, detailed in Article 8a(7) of the CRD. Should an exemption be granted, the firm may continue to operate under its investment firm authorization.

Proposed factors include:

• Nature, scale, and complexity of the investment firm's activities
• Degree to which the entity engages in typical banking activities
• Potential systemic risk and contributions to financial stability

"The revised RTS reflect the 2024 amendments to the CRD and contribute to a more proportionate and risk-based application of the framework for investment firms," the EBA states in its official communication.

Public Consultation Process and Relevant Documents

Any interested party may submit comments on the draft until November 25, 2026, via the EBA’s official consultation page. Additionally, the EBA will host a virtual public hearing on September 30, 2026, at 10:00 CEST, for which registration is required by September 25 at 16:00 CEST. Details on accessing the meeting will be provided to those who complete their registration.

Documents subject to consultation include:

• Draft RTS on the reclassification of investment firms (906.52 KB in PDF)
• Templates for tracking the threshold (Annex 1, 71.44 KB in PDF)
• Updated manual in line with CRD6 (Annex 2, 248.28 KB in PDF)

Once the consultation is completed, all comments will be published unless a request is made otherwise.

Legal Framework of the New RTS for Investment Firms

The drafts have been prepared under the following regulatory framework:

• Article 8a(6)(b) of the CRD: Specifies the methodology for calculating total asset levels for the €30 billion threshold.
• Article 55(5) of the IFR: Requires reporting requirements to be defined for investment firms with assets exceeding €5 billion.
• Article 8a(7) of the CRD: Details the factors that authorities must consider when evaluating exemption requests.

To read about other regulatory frameworks in the financial sector and their interaction with digital platforms, visit our regulation section.

Relevance for Operators and Providers in the Sector

The new rules proposed by the EBA will have direct effects on large investment service providers who, upon exceeding the established asset limits, will be subject to the requirements specific to credit institutions. Providers and platforms will need to adapt their reporting and customer identification procedures to ensure compliance with these reinforced obligations.

Institutional participants in the sector thus have an opportunity to influence the final drafting of the RTS by submitting comments and participating in the virtual hearing in September.