FAQs for press release on amendments to supervisory fees framework

17 December 2019

Why did the ECB hold two public consultations?

The ECB launched the review of the ECB supervisory fees framework in June 2017 with a public consultation calling for feedback and suggestions for possible improvements to the framework. Following the closure of the 2017 public consultation, the ECB analysed all comments received from the public and also conducted its own internal review. The outcome was presented as proposals for the improvement of the framework in the second public consultation, launched in April 2019. By holding two public consultations on the topic, the ECB engaged in meaningful conversation with the public on the supervisory fee methodology. The ECB has attempted to address the concerns of individual stakeholders wherever possible, while ensuring that the feeing framework remains transparent and as fair as possible to the highest number of banks.

What was the total number of comments received during the public consultation in 2019?

In total, 11 responses were received, comprising 47 individual comments. All were in English, with the exception of one response received in German. Responses were submitted by three national competent authorities, six banking associations, one supervised entity and one other market participant.

What are the main changes to the Regulation since the version published in April 2019?

Based on the comments received, the threshold for smaller less significant institutions (LSIs) to receive the discount on the minimum fee component has been increased from total assets of €500 million or less to total assets of €1 billion or less. In addition, the legal requirement to publish an estimate of the annual costs for the fee period on the ECB’s website has been reinstated in the Regulation.

There are also some editorial changes to the amending Regulation, mainly aimed at ensuring consistency in terminology between it and the implementing Fee Factors Decision (Decision (EU) 2015/530 of the ECB of 11 February 2015 on the methodology and procedures for the determination and collection of data regarding fee factors used to calculate annual supervisory fees (ECB/2015/7) (OJ L 84, 28.3.2015, p. 67)). The consolidated version of the Regulation containing all amendments is provided with the feedback statement for information.

Why is the Fee Factors Decision being recast at the same time?

In view of the amendments to the Fees Regulation, the implementing decision (the Fee Factors Decision) also needs to be updated.

The update is taking place in parallel and is included in this package to provide a complete overview of the changes to the framework. Several of the comments received during the two public consultations are reflected in the recast Fee Factors Decision.

The two legal instruments will be applicable from the 2020 fee period onwards.

How will banks be informed of the new process?

The ECB will send regular communications to fee-paying institutions throughout the transition period to advise them on what these changes mean in practical terms and to guide them through the new processes related to (i) ex post invoicing; (ii) reuse of supervisory data; (iii) language versions of the fee notice; and (iv) the format of the management letter to be used in place of auditor verification.

Ex post invoicing in particular requires changes to current timelines, with a new process also required in relation to the confirmation of data resulting from the reuse of supervisory data. Therefore Section 3 of the feedback statement provides a high level description of these new elements, with further communications to follow in the course of 2020.