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

CP13/6
CRD IV for Investment Firms
4.
Capital Requirements Regulation:
Key proposals
Introduction
4.1 This chapter highlights some of the key areas of national discretion in the Regulation, and
explains the proposed FCA approach to these discretions:
• the implementation of CRD IV liquidity reporting for a small number of firms;
• changes to the definition and structure of capital including the transitional provisions on
capital;
• partnership capital;
• internal models;
• large exposures;
• leverage;
• financial reporting;
• simplified credit risk calculation; and
• exposures secured by mortgages on commercial real estate property.
4.2 Particular focus is centred on new national discretions and areas where the FCA proposes to
change its approach from the current one.
We will not be making rules to implement the Regulation, except where permitted as
a national discretion, or required as a national implementing measure.
Annex 3 lists the relevant areas of national discretions in the Regulation and the FCA’s
approach towards their application.
4.3 Please note that the new prudential category of firms created through the use of Article 95(2)
of the CRR is discussed in Chapter 6, as it raises issues specific to that category of firms.
30 July 2013
Financial Conduct Authority