RTS: Risk-weighted exposure of collective investment undertakings (mandate-based)

This regulation sets out technical standards for how banks and credit institutions calculate risk-weighted exposure amounts when investing in collective investment undertakings. It specifically focuses on the 'mandate-based approach,' ensuring that financial institutions accurately measure and report the risks associated with these investments to maintain financial stability.

This affects banks, insurance companies, and pension funds. It changes how they calculate capital requirements for specific investment portfolios, ensuring more consistent risk management across the EU financial sector.