Amending certain financial services and investment support Regulations as regards certain reporting requirements
PURPOSE: to amend Regulations (EU) No 1092/2010, (EU) No 1093/2010, (EU) No 1094/2010, (EU) No 1095/2010 and (EU) 2021/523 as regards certain reporting requirements in the fields of financial services and investment support.
PROPOSED ACT: Regulation of the European Parliament and of the Council.
ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.
BACKGROUND: reporting requirements play a key role in ensuring proper monitoring and correct enforcement of legislation. Reporting requirements can however also impose disproportionate burdens on stakeholders, particularly affecting SMEs and micro-companies, also given organisational and technological developments that call for original reporting requirements to be adjusted. Their cumulation over time can result in redundant, duplicating or obsolete obligations, inefficient frequency and timing, or inadequate methods of collection.
Streamlining reporting obligations and reducing the administrative burden are therefore a priority.
Regulation (EU) No 1092/2010 on European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board, Regulation (EU) No 1093/2010 establishing a European Supervisory Authority (European Banking Authority), Regulation (EU) No 1094/2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions, Regulation (EU) No 1095/2010 establishing a European Supervisory Authority and Regulation (EU) 2021/523 establishing the InvestEU Programme contain a certain number of reporting requirements which should be simplified.
In line with the Commission’s Communication on ‘Long-term competitiveness of the EU: looking beyond 2030’, this proposal is part of a first package of measures to rationalise reporting requirements. This is a step in a process looking comprehensively at existing reporting requirements, with a view to assess their continued relevance and to make them more efficient.
CONTENT: the proposal seeks to rationalise reporting requirements in headline ambition ‘An economy that works for people’.
The proposed amendments to Regulation (EU) 1092/2010, Regulation (EU) 1093/2010, Regulation (EU) 1094/2010 and Regulation (EU) 1095/2010 set out how authorities overseeing the EU financial sector may share with each other information that they have obtained in carrying out their duties.
In the area of the internal market and specifically the financial services sector, the proposal will facilitate the exchange of information between authorities overseeing the financial sector and the consolidation of reporting currently performed under various requirements. The reporting requirements concern financial institutions and other financial market participants.
The proposal for the exchange of information between authorities overseeing the financial sector aims to avoid duplicative reporting requests where multiple authorities have the power to collect certain data from financial institutions or other market participants (whether the authorities already collect it or not) but lack the explicit legal basis to share it among themselves. The proposal is complemented by a mandate for the authorities to regularly review and remove reporting requirements that have become redundant or obsolete for instance due to enhanced information exchange.
The proposal will also increase the ability of the Commission to obtain data to prepare policies and carry out impact assessments and evaluations.
To further improve the utility of the reported data, the proposal also aims to support the use of information for the purpose of research and innovation in financial services, by allowing, under strict conditions, the sharing of information held by authorities with financial institutions, researchers, and other entities with a legitimate interest. The proposal will permit authorities to share relevant information obtained as part of their duties, subject to the safeguards on personal data, intellectual property rights and business confidentiality.
In the policy areas of competitiveness, growth, employment, innovation, social resilience, cohesion and strategic investments, the proposal aims to rationalise the requirements for reporting on implementation of the InvestEU Programme. The requirements cover the following sectors: access to finance for SMEs and investment support to companies in sustainable infrastructure, research, innovation and digitisation, and social investment and skills.
The proposal changes the reporting frequency from biannual to annual, which reduces the workload and administrative burden across all InvestEU windows (i.e. Sustainable infrastructure, SMEs, Research, innovation and digitisation, social investment and skills), with negligible implications on implementation of the programme.