6. CAM for authorisation as credit institution under letter (b) of point (1) of Article 4(1) CRR

In accordance with Article 8a CRD, undertakings meeting one of the conditions set out in point (1), letter (b), (i)-(iii) of Article 4(1) CRR have to apply for an authorisation as a credit institution.

For that purpose, the concerned undertakings have to submit an application to the competent authority in compliance with the information requirements set out in EBA RTS 2020/11 (information for authorisation under Article 8a(6)(a) CRD¹⁷ ).

¹⁷ EBA RTS/2020/11 of 16 December 2020, Draft regulatory technical standards related to the implementation of a new prudential regime for investment firms on: - the information for the authorisation of credit institutions under point (a) of Article 8a(6) of Directive 2013/36/EU […]. https://eba.europa.eu/regulation-and-policy/investment-firms/regulatory-technical-standards-prudential-requirements-investment-firms

Competent authorities should review such information in light of the requirements of truthfulness, clarity, accuracy and completeness and with a view to ensuring the sound and prudent management of the credit institution. Based on the assessment, they may also require supplemental information or clarification in accordance with Article 1(5) of EBA RTS 2020/11 (information for authorisation under Article 8a(6)(a) CRD).

To review and assess the application, competent authorities should apply all sections of these Guidelines to the extent relevant, having regard to the specific features of the applicant. This is without prejudice to the setting out in this section of additional assessment criteria that take into account the specificities of the applicant under point (1), letter (b) of Article 4(1) CRR.

With a view to streamlining the assessment in accordance with Article 8a(5) CRD, competent authorities should cooperate with the competent authority indicated in Article 67 of Directive 2014/65/EU (MiFID2). In particular, for the purposes of forming their own assessment on the applicant’s compliance with the conditions for authorisation as a credit institution, competent authorities should take into account the assessment provided by the competent authority indicated in Article 67 MiFID2, relating to the continuous compliance of the applicant with conditions for authorisation under MiFID.

Competent authorities should ensure that the applicant credit institution will be compliant with the applicable prudential requirements as of the first day of access to the market as an authorised credit institution. Competent authorities should therefore appropriately calibrate the intensity of their assessment in respect of those applicants which, prior to the application, were subject to prudential requirements other than those applicable to credit institutions.

For the purposes of the assessment of the business plan, competent authorities should apply the methodology laid down in section 7 to the extent applicable. Furthermore, they should take into account the specificities of the applicant credit institution’s business model, having regard in particular to the features of the revenue generating income model, funding structure and specific risks that such a business model is or might be exposed to.