The European Banking Authority (EBA) published technical advice responding to the European Commission’s call for advice on the fees to be charged for the EBA’s central validation of pro forma models under the European Market Infrastructure Regulation (EMIR). The advice sets out recommendations intended to inform the Commission’s delegated act on the annual fees payable by financial and non-financial counterparties that use EBA-validated pro forma models. The EBA recommends that the delegated act allow all direct and indirect costs linked to the central validation function to be recovered through fees. It also proposes simpler approaches for calculating the 12-month average notional amount of non-centrally cleared OTC derivatives used to determine the annual fee, including practical details aimed at ensuring proportionality across counterparties. Further recommendations cover payment modalities, the information counterparties should provide to support individual fee determination, and the invoicing process. The advice follows market participant feedback gathered through an EBA discussion paper consulted on in March 2025 and is intended to support the Commission in finalising the delegated act required under Article 11(12a) of EMIR.
European Banking Authority 2025-06-30
European Banking Authority advises European Commission on cost recovery and fee-setting methodology for EMIR pro forma model validation
The European Banking Authority (EBA) issued technical advice to the European Commission on fees for the EBA's central validation of pro forma models under the European Market Infrastructure Regulation (EMIR). Recommendations include recovering costs through fees, simplifying fee calculations based on OTC derivatives, and detailing payment and invoicing processes. This advice follows feedback from a March 2025 discussion paper and aims to aid the Commission in finalizing the delegated act under Article 11(12a) of EMIR.