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Commodity dealers: Council agrees to extend exemption

Council of the EU
  • 23/03/2016
  • 11:55
  • Press release
  • 155/16
  • Economy & finance
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On 23 March 2016, the Permanent Representatives Committee agreed, on behalf of the Council, to extend an exemption for commodity dealers under an EU regulation on bank capital requirements.

Regulation 575/2013 exempts commodity dealers from large exposure requirements and from own funds requirements until 31 December 2017. It also requires the Commision to prepare, by 31 December 2015, reports on the prudential supervision of commodity dealers and of investment firms in general. That review is still underway, and new legislation that may be required as a consequence would only be adopted after 31 December 2017.

The Council therefore agreed to extend the exemption until 31 December 2020, in order to save commodity dealers from an unstable regulatory environment in the short term. Applying large exposure requirements and own funds requirements to commodity dealers should not come as the result of a lapsed exemption, the Council considered, but on the basis of a thoroughly reasoned decision.

A proposed regulation extending the deadline will be submitted to the European Parliament for approval at first reading, and then to the Council for adoption.

The Presidency confirmed with member states that they will support the extension; the Parliament's “ECON” committee backed the extension on 7 March 2016.