- Consistency and clarity of reporting requirements and data standardisation
- Removing obsolete reporting and disclosure requirements to minimise costs
- Establishing a Single Integrated Reporting System to share information efficiently
- Ensuring proportionality in reporting and monitoring for InvestEU
The Economic and Monetary Affairs Committee adopted new rules to streamline reporting obligations and reduce the administrative burden for the European Union’s financial sector.
MEPs stressed that growing demand for data makes it necessary to gather them in a consistent and standardised way across jurisdictions. They enlarged the scope of the original Commission proposal and decided that not only all European Supervisory Authorities (ESAs) responsible for supervision in the financial sector in the EU, but also the Single Resolution Board (SRB) responsible for resolving banks in distress and the European Anti-Money Laundering Authority (AMLA) would be obliged to follow new rules,. MEPs want these authorities to regularly review the reporting and disclosure requirements in order to remove those that are obsolete, disproportionate or duplicative.
To coordinate their efforts to detect, monitor, prevent and mitigate systemic risks to financial stability, these authorities should engage in peer reviews to improve the effectiveness and convergence of these requirements. They should also provide opinions on how to address inconsistencies, redundancy and possible gaps in reporting request included the financial sector legislation both in force and in ongoing legislative procedures. Furthermore, in case of legal obstacles hindering the exchange of information among authorities, they should inform the Commission.
MEPs want the authorities to strive for the “report once” principle, so that information from financial institutions or other reporting entities is only reported once to one authority. The authorities would share and reuse this information while safeguarding data protection, professional secrecy and intellectual property. All authorities should also establish a Single Integrated Reporting System including a common data dictionary that ensures consistency and clarity of reporting requirements and data standardisation, including consistency between the reporting requirements of financial and non-financial companies.
As to InvestEU, MEPs backs the Commission proposal ensuring proportionality in reporting and monitoring requirements as well as minimising costs for all stakeholders and final beneficiaries, without undermining the respective InvestEU objectives.
Othmar Karas (EPP, AT), the lead MEP said: “"With this package to cut red tape in the financial sector, we have the opportunity to show that the European Union is always working to eliminate unnecessary bureaucracy and inefficient reporting requirements. Double reporting in the financial sector should become a thing of the past. Measures in the package also target over-compliance of EU regulations, so-called “gold plating”. The ball is now in the court of the Member States to agree on their negotiating position as soon as possible."
The text was adopted with 33 votes in favour 1 against and no abstentions. MEPs also agreed to begin negotiations with the Council.