The European Banking Authority has released a report on prudential consolidation and final guidelines on ancillary services undertakings to improve supervisory practices and regulatory consistency across the EU.
The European Banking Authority (EBA) has published a Report on prudential consolidation and final Guidelines on ancillary services undertakings (ASU) under the Capital Requirements Regulation (CRR). Both aim to enhance the efficiency, proportionality, and harmonization of the prudential framework within the EU.
The report offers targeted recommendations to support legislative adjustments by the European Commission and clarifies implementation challenges identified across EU institutions. Key elements include simplification of sub-consolidation requirements, improved alignment with accounting standards, refinement of control definitions, and clarification of consolidation perimeters, especially concerning insurance undertakings within financial conglomerates.
The Guidelines on ancillary services undertakings provide clear criteria for activities considered as ancillary services, such as operational leasing, property management, and data processing. They also address innovative digital business models, including fintech, which may pose new risks. These guidelines aim to promote supervisory convergence and comparability of prudential requirements across the EU.
The report is developed under Article 18(10) of Regulation (EU) No 575/2013, and the guidelines are based on Article 4(5) of the same regulation. The publications support consistent supervisory practices and regulatory clarity within the EU financial sector.
