Publication Alert: EBA - First draft of the technical package for the 4.0 reporting framework
We communicate that the European Banking Authority (EBA) has published the first draft of the technical package for the 4.0 reporting framework.
1. Context
Last year, the EBA announced the migration to the data point model (DPM) 2.0 methodology and published the corresponding documentation. In June of this year, the plans for this migration and the new glossary were presented.
In this context, the EBA has released the first draft of the technical package for the 4.0 reporting framework, which includes specifications for the migration to the DPM 2.0 methodology. The package reflects the ammendments recommended by the European Supervisory Authorities (ESAs) in their opinion of October 15, after the European Commission (EC) rejected the draft Implementing Technical Standards (ITS) on information records under the Digital Operational Resilience Act (DORA).
2. Main points
The draft establishes the standard specifications, including validation rules, the DPM, and eXtensible Business Reporting Language (XBRL) taxonomies, to develop the following reporting standards: reporting by issuers of asset-referenced tokens (ARTs) and electronic money tokens (EMTs), the modification of the supervisory reporting framework (COREP templates) to implement changes from the EU Banking Package (CRR3/CRDVI), and minor adjustments for class 2 investment firms, aligning with these updates. Additionally, the following aspects are detailed:
· Introduction of DPM 2.0. The EBA is transitioning to a new DPM that will completely replace DPM 1.0. This version incorporates significant improvements in technical specifications, such as the inclusion of new validation rules and the adoption of XBRL-based taxonomies to enhance reporting accuracy. The EBA's objective is to optimize the collection of regulatory data through automated processes that ensure more efficient and detailed regulatory compliance.
· New validation rules language. The new DPM-XL language is introduced to improve the effectiveness and security of validation processes. It consolidates validation information into a single expression format and reduces reliance on Excel-based expressions.
· Automated processes ensuring more efficient and detailed regulatory compliance.
· Start of the transition to the DPM 2.0. This version introduces significant improvements in technical specifications, including new validation rules and XBRL-based taxonomies to enhance reporting accuracy. The EBA aims to optimize regulatory data collection through automated processes for more efficient and detailed compliance.
· Implementation of the new glossary. DPM 2.0 introduces an updated glossary to enhance the clarity and accuracy of the reported information. The adoption of the new glossary will be gradual, with version 4.0 implementing specific modules and subsequent versions expanding its use.
· Improvements in validation rules with DPM-XL. The new approach adopted in the DPM quality review project incorporates the use of the DPM-XL standard for validation rules. This innovation will make the rules easier to automate and apply, ensuring greater efficiency in managing regulatory compliance. The new methodology will also help institutions better understand the requirements and improve the quality of the reported data.
3. Next steps
· The final version of the technical package for the reporting framework 4.0 will be published in December, incorporating the changes suggested by the ESAs. This package will begin to apply from the first half of 2025.
· The coexistence of DPM 1.0 and DPM 2.0 during the transition phase until December 2025 will allow institutions to migrate gradually. The EBA will continue to publish documentation and support for both versions, providing flexibility for entities to use either methodology during this period to ensure a smooth adaptation to the new requirements.