CP13/6 - CRD IV for Investment Firms - Financial Conduct Authority

CP13/6
CRD IV for Investment Firms
• ‘forward looking’: we are mindful that CRD IV requires the EU Commission to undertake,
by the end of 2015, a review of what should be an appropriate prudential regime for
investment sector firms. Hence, it provides a suitable opportunity to seek to address any
fundamental issues for such firms arising from CRD IV, which was designed more with
banks in mind.
Key implications
1.22 This approach has the following key implications:
• this CP includes only the Handbook changes required to transpose the Directive provisions –
where it is the responsibility of the FCA – and to exercise certain discretions in the Regulation;
• this CP covers a large number of discretions in the Regulation as well as those parts of
the Directive that are allocated, with agreement from HMT, for transposition by the FCA
(although policy proposals for the Directive relate to new or changed provisions only);
• the consultation period is two months, to be followed by a Policy Statement and final rules
later in 2013 to give firms sight of the final rules before 1 January 2014;
• we carry forward the substance of existing rules as far as possible given the CRD IV and the
FCA objectives;
• where possible, we seek ways to reduce the impact of the need for permissions to use
certain treatments to be granted by the FCA on a ‘case by case’ basis, for example by
making a general rule allowing a particular treatment or giving guidance on what will be
acceptable (to the extent not prevented by the CRR text); and
• the use of rules to exercise national discretions is an approach subject to agreement by
the Treasury. Therefore, depending upon the subsequent legal mechanism chosen by the
Treasury to achieve transposition, we may need to consult further on some these items later
in 2013.
1.23 As a consequence:
Our CP will cover our proposals on Handbook Rules and Guidance on:
• national discretions and derogations in the CRR and the Directive;
• new requirements, and changes to existing requirements, in the Directive; and
• existing requirements in the Directive that are ‘carried across’.
However, our CP will not include:
• new, changed and existing requirements now in the CRR (which are directly
applicable unless there is a national derogation, choice or action); and
• any other policy changes not essential to meet our legal obligations to transpose
CRD IV.
10 July 2013
Financial Conduct Authority