Standard RA1.1 on the reporting of intra-group transactions has been replaced by new regulations and guidelines 1/2024
Standard RA1.1 (hereinafter the “standard”) was applicable to the reporting of intra-group (mutual) transactions between a credit institution and investment firm with regulated entities in the same consolidation group or the central institution of an amalgamation and regulated entities within a financial and insurance conglomerate primarily engaged in financial activities to the Financial Supervision Authority. The standard entered into force on 1 June 2006 and it has become partly obsolete in terms of content.
The standard has been amended with respect to credit institutions and investment firms so that its scope of application no longer includes a consolidation group's internal transactions. As regards investment firms, the scope of application has been specified so that the standard only applies to investment firms specifically mentioned in the Act on Investment Services that fall within the scope of the obligation to report intra-group transactions. The changes stem from amendments to the Credit Institutions Act and the Investment Services Act. Furthermore, the requirement for intra-group transactions to be carried out at market terms has been removed, since a corresponding obligation is included in valid legislation. The reporting obligation for the central institutions of amalgamations was removed, since there is no longer a need for this reporting requirement in the sense intended by law.
The standard has also been amended with respect to financially oriented financial and insurance conglomerates so that they are no longer included in its scope of application. The change stems from Commission Delegated Regulation (EU) 2015/2303 and Commission Implementing Regulation (EU) 2022/245, providing that the reportable transaction types, threshold values and the reporting and overview periods are defined on a conglomerate-specific basis by the coordinating supervisor.
The standard has also been revised to correspond with the current structure of regulations and guidelines, as a result of which, the standard is renamed as “Regulations and guidelines 1/2024 reporting of intra-group transactions”.
The first report under the new regulations and guidelines shall be made for the first time on transactions made between 1 July and 30 September 2024, and it shall be submitted to the FIN-FSA by 15 November 2024. As regards the reporting period from 1 April to 30 June 2024, credit institutions and investment firms belonging to the scope of application of regulations and guidelines 1/2024 shall comply with the previous regulations of standard RA1.1.
For further information, please contact
- Antti Hietala, Senior Legal Adviser, telephone +358 9 183 5468 or antti.hietala(at)fiva.fi
- Berndt Hertsberg, Head of Division, telephone +358 9 183 5011 or berndt.hertsberg(at)fiva.fi
Appendix
Regulations and guidelines 1/2024 Reporting of intra-group transactions