Application of the Discretion outlined in Article 99 (6) of the CRR to non-IFRS institutions

Where a competent authority exercises the discretion foreseen in Article 99 (6) of Regulation (EU) No 575/2013/EU (CRR) and considers that financial information at consolidated level in Article 99 (2) is necessary to obtain a comprehensive view of the risk profile of the activities of, and a view of the systemic risk to the financial sector or the real economy posed by non-IFRS institutions, it shall consult the EBA on the extension of the reporting requirements to such institutions, provided that they are not already reporting on such a basis. The discretion aims at providing a view on the risk profile of groups of institutions or even the financial sector / real economy rather than individual institutions. Accordingly the discretion should be applied to groups of institutions with similar risk profiles and/or posing similar systemic risk to the financial system or to the real economy. At the same time, the discretion to extend FINREP reporting requirements at consolidated level to non-IFRS institutions applies only to institutions subject to Directive 86/635/EEC (the Bank Accounts Directive). If investment firms are included in the scope of the legislative rules implementing Directive 86/635/EEC (the Bank Accounts Directive) at national level the discretion in Article 99 (6) CRR could be applied to non-IFRS investment firms at consolidated level. Furthermore, it should be noted that the discretion is only applicable to institutions (or a subset thereof) that do not already report on the basis of IFRS in line with Article 99 (2) and (3) of the CRR.