The EBA consults on revised technical standards for the reclassification of investment firms as credit institutions

The European Banking Authority (EBA) launched a consultation on three draft Regulatory Technical Standards (RTS) on the reclassification of investment firms as credit institutions, when they exceed the EUR 30 billion total assets threshold. The proposals clarify how total assets should be calculated against this threshold, how investment firms should report this information to competent authorities, and the conditions under which competent authorities can decide to grant a waiver.

The revised RTS reflect the 2024 amendments to the Capital Requirements Directive (CRD) and contribute to a more proportionate and risk-based application of the framework for investment firms. The consultation is open until 25 November 2026.

Under the CRD, investment firms whose total assets exceed EUR 30 billion are required to obtain a credit institution authorisation rather than operate under a MiFID investment firm authorisation.

Following amendments to the CRD in 2024, which clarified the scope of entities to be included in the calculation of the total assets, the EBA has revised its draft RTS on the methodology for calculating the threshold and on the related reporting requirements for investment firms.

In addition, the EBA is consulting, for the first time, on draft RTS specifying the factors competent authorities must consider when assessing whether to grant a waiver from the requirement to hold a credit institution authorisation. Where a waiver is granted, the firm may continue to operate under an investment firm authorisation.