EBA streamlines connected client guidelines
The European Banking Authority (EBA) has partially deleted its Guidelines on connected clients (EBA/GL/2017/15). This streamlining aligns the guidelines with the recently adopted EU Commission Delegated Regulation 2024/1728.
New EU law takes precedence
The European Banking Authority (EBA) has partially deleted its Guidelines on connected clients (EBA/GL/2017/15) due to the adoption of Commission Delegated Regulation (EU) 2024/1728. This new EU legislation now directly governs specific aspects previously covered by the EBA's guidelines, particularly regarding the identification of groups of connected clients.
The Delegated Regulation precisely outlines the conditions for identifying such groups, including control relationships, economic dependency, and their combined forms.
Consequently, sections 4, 6, and 7 of the EBA guidelines became redundant.
The EBA's decision aims to ensure a common, uniform, and consistent application of Union law, thereby eliminating regulatory overlap and enhancing legal clarity.
The deleted provisions correspond to paragraphs 11 to 15 (Section 4), 21 to 30 (Section 6), and 31 to 33 (Section 7) of the original document.
The consolidated text of the guidelines on the EBA's website will be updated immediately to reflect these changes, offering a streamlined resource for all relevant parties.
Enhancing regulatory clarity
This partial deletion of guidelines is a direct consequence of the European Union's evolving regulatory landscape, aiming to enhance clarity and consistency in banking supervision.
The EBA's original guidelines (EBA/GL/2017/15) were designed to ensure uniform application of Union law regarding connected clients.
However, with the introduction of Commission Delegated Regulation (EU) 2024/1728, specific aspects of identifying these client groups are now directly addressed by higher-level legislation.
This necessitates the EBA to streamline its own guidance, preventing redundant or potentially conflicting provisions.
This supports the overarching goal of a harmonized regulatory framework, reducing complexity for credit institutions operating across the EU.
It reflects the EBA's mandate under Regulation (EU) No 1093/2010 to contribute to the consistent application of Union law, ensuring an efficient and coherent regulatory ecosystem.
A necessary simplification
This streamlining represents a pragmatic and necessary adjustment to the EU's complex regulatory architecture.
It effectively eliminates redundant guidance, offering banks a clearer, more consolidated framework for compliance.
While seemingly technical, such updates are crucial for maintaining the coherence and efficiency of the Union's banking supervision efforts.