ECB consults on draft guide to on-site inspections and internal models investigations

ECB has published a consultation paper on draft guidance to on-site inspections and internal models investigations. The objective of the guidance is to provide a useful reference document for supervised entities and other legal entities for which the ECB has decided to launch an on-site inspection, as well as for the work of the on-site inspection team itself. The guidance describes the inspection process, from the decision to launch the inspection to the follow-up stage, and sets out the best practices to be followed by the entities being inspected and by inspection teams.

The guidance comprises the following three sections:

• section 1: general work;
• section 2: inspection process; and
• section 3: applicable principles for inspections.

The deadline for comments on the consultation paper is 15 September 2018, however there is no expectation for significant amendments

LINK to draft guidance

Deloitte has been conducting onsite inspections for and behalf of ECB and National Competent authorities and is the selected service provider for ECB on the Internal Model Review (TRIM) comprehensive assessment

Deloitte team can support you with readiness on ECB’s on-site inspections and TRIM:

-       Prepare your bank to be aware of the potential TRIM findings and assist on required analysis and actions

-       Assist on required analyses and actions to anticipate potential OSI findings

-       Deep-dives on selected portfolios and topics, as a simulation and preparation for on-site inspections

-       Create a centralized project management team to setup and run the project to ensure a successful completion of the On-site inspection

-       Prepare your bank to be aware of the potential OSI and TRIM findings and assist on required analysis and actions