The European Banking Authority has published a collaborative report with ESMA which lists a series of recommendations that aim to provide a more proportionate and less complex prudential regime for investment firms, based on appropriate risk sensitivity parameters. The main recommendations of the EBA relate to: (i) a new categorisation of investment firms, distinguishing between systemic risk and "bank-like" investment firms to which the full CRD IV requirements should be applied, other investment firms ("non-systemic") with a more limited set of prudential requirements, and very small firms with "non-interconnected" services; (ii) the development of a prudential regime for "non-systemic" investment firms; and (iii) extending the waiver for commodity trading firms until 31 December 2020.