Regulatory Technical Standard

Definition

A delegated act adopted by the European Commission on the basis of a draft prepared by a European Supervisory Authority (EBA, ESMA, or EIOPA). RTS specify the conditions for the application of EU legislative acts and are binding in their entirety across all Member States. They sit in Level 2 of the EU regulatory framework.

What is an RTS?

A Regulatory Technical Standard (RTS) is a delegated act adopted by the European Commission based on a draft prepared by one of the three European Supervisory Authorities (EBA, ESMA, or EIOPA). RTS sit in 'Level 2' of the EU legislative framework (the Lamfalussy process) and provide detailed technical specifications for the application of Level 1 legislation (regulations and directives).

How RTS Are Adopted

Under Article 10 of the ESA Regulations (e.g., Regulation (EU) No 1093/2010 for EBA), the relevant ESA develops a draft RTS and submits it to the Commission. The Commission may adopt it without changes, adopt it with amendments (with ESA consent), or reject it. The European Parliament and Council have a scrutiny period (typically 3 months, extendable to 6) during which they can object. Once adopted, RTS are directly applicable in all Member States.

RTS vs ITS

Regulatory Technical Standards (RTS) define technical details for applying legislation. Implementing Technical Standards (ITS) define uniform conditions for implementation — typically reporting templates, forms, and procedures. Both are binding, but RTS carry more substantive regulatory content. In practice, major EU regulations (MiCAR, DORA, SFDR) are supplemented by numerous RTS and ITS that specify the detailed requirements.