ANNEX III
SUPERVISORY REVIEW AND EVALUATION PROCESS (SREP)
List of templates
General remarks on filling in templates in Annex III
When publishing information on the general criteria and methodologies, competent authorities shall not disclose any supervisory measures directed at specific investment firms, whether taken with respect to a single investment firm or to a group of investment firms.
SUPERVISORY REVIEW AND EVALUATION PROCESS (SREP) ( 2 )
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010 |
Date of the last update of information in this template |
(dd/mm/yyyy) |
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020 |
Scope of application of SREP (Article 36 of IFD) |
Description of the competent authority’s approach to the scope of application of SREP including: — what types of investment firms are covered by/excluded from SREP. — a high-level overview of how the competent authority takes into account the principle of proportionality when considering the scope of SREP and frequency of assessment of various SREP elements (1). |
[free text or reference or hyperlink to such guidance] |
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030 |
Assessment of SREP éléments (Articles 36 of IFD) |
Description of the competent authority’s approach to the assessment of individual SREP elements including: — a high-level overview of the assessment process and methodologies applied to the assessment of SREP elements, including: (i) business model analysis; (ii) assessment of internal governance and investment firm-wide controls; (iii) assessment of risks to capital; and (iv) assessment of risks to liquidity; — a high-level overview of how the competent authority takes into account the principle of proportionality when assessing individual SREP elements (2). |
[free text or reference or hyperlink to such guidance] |
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040 |
Review and evaluation of ICAAP and ILAAP (Articles 24 and 36 of IFD) |
Description of the competent authority’s approach to the review and evaluation of the additional own funds and specific liquidity requirements as part of the SREP, and, in particular, for assessing the reliability of additional own funds and liquidity calculations for the purposes of determining additional own funds and liquidity requirements including (3): — an overview of the methodology applied by the competent authority to review the internal capital adequacy assessment process (ICAAP) and the internal liquidity adequacy assessment process (ILAAP) of investment firms; — information/reference to the competent authority requirements for submission of ICAAP and ILAAP-related information, in particular covering what information needs to be submitted; — information on whether an independent review of the ICAAP and the ILAAP is required from the investment firms. |
[free text or reference or hyperlink to such guidance] |
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050 |
Overall SREP assessment and supervisory measures (Articles 38 and 39 of IFD) |
Description of the competent authority’s approach to the overall SREP assessment (summary) and application of supervisory measures on the basis of the overall SREP assessment (4) Description of how SREP outcomes are linked to the application of early intervention measures according to Article 27 of Directive 2014/59/EU and determination of conditions whether the investment firm can be considered failing or likely to fail according to Article 32 of that Directive (5). |
[free text or reference or hyperlink to such guidance] |
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(1)
The scope of SREP to be considered both at a level of an investment firm and in respect of its own resources. A competent authority shall explain the approach used to classify investment firm into different categories for SREP purposes, describing the use of quantitative and qualitative criteria, and how financial stability or other overall supervisory objectives are affected by such categorisation. A competent authority shall also explain how categorisation is put in practice for the purposes of ensuring at least a minimum engagement in SREP assessments, including the description of the frequencies for the assessment of all SREP elements for different categories of investment firms.
(2)
3Including working tools e.g. on-site inspections and off-site examinations, qualitative and quantitative criteria, statistical data used in the assessments. Hyperlinks to any guidance on the website to be added.
(3)
Competent authorities shall also explain how the assessment of the internal capital adequacy assessment process (ICAAP) and the internal liquidity assessment process (ILAAP) is covered by the minimum engagement models applied for proportionality purposes based on SREP categories as well as how proportionality is applied for the purposes of specifying supervisory expectations to ICAAP and ILAAP, and in particular, any guidelines or minimum requirements for the ICAAP and ILAAP the competent authorities have issued.
(4)
The approach competent authorities apply to arrive at the overall SREP assessment and its communication to the investment firms. The overall assessment by competent authorities is based on a review of all the elements referred to in row 020 to 040, along with any other relevant information about the investment firm that the competent authority may obtain.
(5)
Competent authorities may also disclose the policies that guide their decisions for taking supervisory measures (within the meaning of Article 18 of the IFD) and early intervention measures (within the meaning of Article 27 of the Bank Recovery and Resolution Directive (BRRD)) whenever their assessment of an investment firm identifies weaknesses or inadequacies that call for supervisory intervention. Such disclosures might include the publication of internal guidelines or other documents describing general supervisory practices. However, no disclosure is required regarding decisions on individual investment firms, to respect the confidentiality principle. Furthermore, competent authorities may provide information regarding the implications if an investment firm violates relevant legal provisions or does not comply with the supervisory or early intervention measures imposed based on the SREP outcomes, e.g. it shall list enforcement procedures that are in place (where applicable). |
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( 2 ) Competent authorities are to disclose the criteria and methodologies used in rows 020 to 040 and in row 050 for the overall assessment, in the form of an explanatory note as per the second column.