Title 11 Application of SREP to investment firms groups

This title addresses the application of the common SREP procedures and methodology as specified in these guidelines in relation to investment firms’ groups and their entities. It also provides links with the supervisory cooperation and coordination pursuant to Articles 48 and 49 of Directive (EU) 2019/2034 and in accordance with the delegated regulation adopted based on Article 48(8) of that Directive²⁵ .

²⁵ EBA/RTS/2021/06 on the colleges of supervisors for investment firm groups

In the SREP, competent authorities should also consider the potential ML/TF risks, taking into account input received from the relevant AML/CFT supervisors of the Member State where a parent undertaking is established as well as AML/CFT supervisors responsible for the AML/CFT supervision of establishments of the group in different jurisdictions, in particular the assessment of ML/TF risks, material weaknesses and breaches of AML/CFT legislation, that are linked to the cross-border group structure.

When assessing prudential implications of ML/TF risks for an investment firm cross-border group, competent authorities should leverage the information obtained through bilateral engagements with relevant AML/CFT supervisors and through their participation in AML/CFT colleges²⁶ and prudential colleges.

²⁶ AML/CFT colleges as defined in the Joint guidelines on cooperation and information exchange for the purpose of Directive (EU) 2015/849 between competent authorities supervising credit and financial institutions (“The AML/CFT Colleges Guidelines”).

11.1 Application of the SREP to cross-border groups

11.2 SREP capital assessment and investment firm-specific prudential requirements

11.3 Application of other supervisory measures