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

RegCanary interpretation

This is RegCanary analysis, not source text. Check material statements against the original publication.

The EBA has opened a consultation on revised technical standards outlining how investment firms will be reclassified as credit institutions upon breaching the €30 billion total assets threshold. This follows the 2024 CRD amendments and aims to create a more proportionate, risk-based framework. For compliance teams at large or growing investment firms, the key takeaway is the need to monitor total assets more rigorously and prepare for potential reclassification triggers. The draft RTS clarify calculation methodologies, introduce reporting obligations to competent authorities, and set conditions for waiver requests - offering some flexibility but also new administrative burdens. Firms near the threshold should assess their current asset calculations and consider engaging with the consultation to shape the final standards. While this primarily affects the largest investment firms, any firm with significant balance sheet growth should track progress against the threshold. The consultation runs until 25 November 2026, providing a window for industry feedback. Proactive engagement now can help firms influence implementation details and avoid unexpected reclassification outcomes. RegCanary recommends that affected firms review the draft RTS, evaluate their asset composition, and prepare internal reporting frameworks in case the revised standards are adopted.

RegCanary impact assessment

RegCanary impact score: 8/10