On October 30, 2014, the European Commission issued a report on the economic consequences of the country-by-country public reporting obligation. CRD IV introduces a new reporting obligation for banks and investment firms to report their names, activities, geographical locations, turnover, staff numbers, profit or loss before tax, tax on profit or loss, as well as any public subsidies received. Institutions will be required to report such data to national regulators on an annual basis, and for each country in which they are established. The European Commission's report aims to assess whether this new obligation is likely to bring about any significant negative economic effects. The report concludes that the new obligation has a positive impact in the promotion of transparency and accountability in the EU financial sector. The report states that this requirement is not expected to have any significant negative impact, although additional guidance may be required to further clarify the contents of the recorded data, so as to minimize the risk of any data being misunderstood. The new public reporting obligation will apply in full from January 1, 2015.

The European Commission's report is available at: http://ec.europa.eu/internal_market/company/docs/modern/141030-cbcr-crd-report_en.pdf