Lithuania Adopts EBA Guidelines on Historical Data Resubmissio

The Bank of Lithuania will follow the European Banking Authority’s (EBA) Guidelines on the Resubmission of Historical Data under the EBA Reporting Framework (EBA/GL/2024/04) in its financial market supervision. Effective 17 October 2024, these Guidelines establish precise requirements for financial sector entities to address errors, inaccuracies, or changes in previously reported data.

Who Needs to Comply?

The Guidelines apply to financial institutions reporting under the EBA’s Supervision and Resolution Reporting Framework, such as:

Credit institutions
Payment institutions
Brokerage firms

Key Provisions of the Guidelines

Mandatory Resubmission of Historical Data: If data from previous reporting periods contain inaccuracies, mistakes, or changes, financial sector entities must correct and resubmit them.
Exceptions to Resubmission: The guidelines outline specific circumstances under which resubmission is unnecessary, ensuring the process remains efficient and reasonable.
Maintaining High Standards: while the guidelines provide a structured approach to addressing errors, they do not replace entities’ obligation to submit high-quality, consistent, and complete data from the outset.

Purpose of the Guidelines

The EBA’s Guidelines aim to:

Support Compliance: help financial sector entities meet their reporting obligations and provide accurate, up-to-date data.
Enhance Data Quality: ensure supervisors, resolution authorities, and the EBA have reliable data for decision-making.
Improve Supervision: enable supervisory and resolution authorities to perform their functions effectively using robust and accurate data.

What This Means for Financial Institutions

Entities must review their internal documents to regulate the reporting processes and ensure compliance with these new requirements. Key actions include:

Establishing mechanisms to identify and rectify inaccuracies in historical data.
Ensuring robust systems and processes to minimise errors in initial submissions.
Familiarizing relevant teams with the provisions of the Guidelines.
By adhering to the Guidelines, financial institutions contribute to a more transparent and reliable supervisory framework, strengthening trust and stability within the financial market.

The Guidelines do not remove the obligation for financial sector entities to report high-quality, consistent, and complete data. Instead, they provide a tool to help them ensure that their reporting obligations are met and that they report up-to-date data, even if there are inaccuracies or mistakes. The guidelines also aim to ensure that supervisors, resolution authorities, and the EBA receive good-quality data that enables them to perform their functions.

Don’t hesitate to contact the experts of ECOVIS ProventusLaw if you need advice or assistance.