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

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FCA 2013/XX 7.1.11 R … [Note: annex V paragraph 4 of the Banking Consolidation Directive] [Note: annex V paragraph 5 of the Banking Consolidation Directive] … Residual risk 7.1.13 R … [Note: annex V paragraph 6 of the Banking Consolidation Directive] Market risk 7.1.14 R … 7.1.15 R … [Note: annex V paragraph 10 of the Banking Consolidation Directive] Interest rate risk 7.1.16 R … [Note: annex V paragraph 11 of the Banking Consolidation Directive] Operational risk … [Note: annex V paragraph 12 of the Banking Consolidation Directive] Additional rules for CRR firms 7.1.16C R In SYSC 7.1.18 a ‘CRR firm that is significant’ means a significant IFPRU firm. 7.1.17 R (1) The management body of a CRR firm is overall responsible for risk. It must devote sufficient time to the consideration of risk issues. (2) The management body of a CRR firm must be actively involved in and ensure that adequate resources are allocated to the management of all material risks addressed in the rules implementing CRD and the EU CRR, as well as in the valuation of assets, the use of external ratings and internal models related to those risks. [Note: article 76(2) of CRD]
FCA 2013/XX 7.1.18 R (1) A CRR firm that is significant must establish a risk committee composed of members of the management body who do not perform any executive function in the firm. (2) The risk committee must advise the management body on the institution’s overall current and future risk appetite and assist the management body in overseeing the implementation of that strategy by senior management. (3) The risk committee must review whether prices of liabilities and assets offered to clients take fully into account the firm’s business model and risk strategy. Where prices do not properly reflect risks in accordance with the business model and risk strategy, the risk committee must present a remedy plan to the management body. [Note: article 76(3) of CRD] 7.1.19 R (1) A CRR firm must ensure that the management body in its supervisory function and, where a risk committee has been established, the risk committee have adequate access to information on the risk situation of the firm and, if necessary and appropriate, to the risk management function and to external expert advice. (2) The management body and, where one has been established, the risk committee must determine the nature, the amount, the format, and the frequency of the information on risk which it is to receive. [Note: article 76(4) of CRD] 7.1.20 R In order to assist in the establishment of sound remuneration policies and practices, the risk committee must, without prejudice to the tasks of the remuneration committee, examine whether incentives provided by the remuneration system take into consideration risk, capital, liquidity and the likelihood and timing of earnings. [Note: article 76(4) of CRD] 7.1.21 R (1) A CRR firm’s risk management function (SYSC 7.1.6R) must be independent from the operational functions and have sufficient authority, stature, resources and access to the management body. (2) The risk management function must ensure that all material risks are identified, measured and properly reported. It must be actively involved in elaborating the firm’s risk strategy and, in all material risk management decisions, it must be able to deliver a complete view of the whole range of risks of the firm. (3) A CRR firm must ensure that the risk management function is able to report directly to the management body in its supervisory function, independent from senior management and that it can raise concerns and warn the management body, where appropriate, where specific risk developments affect or may affect the firm, without prejudice to
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Financial Conduct Authority Consult
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We are asking for comments on this
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CP13/6 CRD IV for Investment Firms
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CRD IV for Investment Firms CP13/6
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FCA 2013/xx Annex A Prudential sour
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FCA 2013/xx (a) (b) deal on own acc
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FCA 2013/xx 1.1.14 G A firm also fa
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FCA 2013/xx connected with, its reg
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FCA 2013/xx 2.1 Application 2.1.1 R
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FCA 2013/xx (a) (b) (c) the nature
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FCA 2013/xx losses because its inco
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FCA 2013/xx 2.2.18 R A firm must ha
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FCA 2013/xx [Note: article 83(3) of
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FCA 2013/xx (b) (c) sudden and seve
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FCA 2013/xx (b) provide the resolut
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FCA 2013/xx between each firm which
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FCA 2013/xx in a number of risk cat
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FCA 2013/xx Capital planning 2.2.73
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FCA 2013/xx approving and actioning
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FCA 2013/xx financial situations or
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FCA 2013/xx activities (IFPRU 2.2.1
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FCA 2013/xx suggested. 2.3.17 G The
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FCA 2013/xx (3) what plan is in pla
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FCA 2013/xx 2.3.35 G For a firm tha
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FCA 2013/xx that considers the poss
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FCA 2013/xx unexpected cash flows l
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FCA 2013/xx (1) a failure by a firm
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FCA 2013/xx single counterparty; (b
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FCA 2013/xx (4) that it has in plac
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FCA 2013/xx that firm. Calculation
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FCA 2013/xx 3.2.8 R A firm must dem
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FCA 2013/xx 126(2), 178(1)(b), 243(
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FCA 2013/xx (1) whether there is an
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FCA 2013/xx 4.3.8 G A significant I
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FCA 2013/xx set out but are outside
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FCA 2013/xx requirements in article
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FCA 2013/xx standards for data qual
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FCA 2013/xx Definition of default:
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FCA 2013/xx Variable scalar conside
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FCA 2013/xx Data considerations 4.3
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FCA 2013/xx (b) (c) (eg, external a
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FCA 2013/xx will allow such cures t
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FCA 2013/xx and not be based purely
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FCA 2013/xx downturn conditions, a
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FCA 2013/xx Direct estimates of EAD
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FCA 2013/xx Netting 4.3.119 G For c
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FCA 2013/xx 4.3.131 G As with all a
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FCA 2013/xx Low default portfolios
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FCA 2013/xx Other requirements 4.3.
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FCA 2013/xx 4.4.4 G A firm should n
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FCA 2013/xx significant risk transf
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FCA 2013/xx risk transfer notificat
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FCA 2013/xx EU CRR) should be revie
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FCA 2013/xx being recognised or the
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FCA 2013/xx with traded debt instru
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FCA 2013/xx Duration of the credit
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FCA 2013/xx Track record and financ
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FCA 2013/xx Pledge of assets, takin
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FCA 2013/xx complete and stabilised
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FCA 2013/xx properties are diversif
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FCA 2013/xx assets are highly liqui
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FCA 2013/xx market asset when it co
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FCA 2013/xx Financial strength of t
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FCA 2013/xx (f) (g) The effect of t
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FCA 2013/xx (2) contains the rule t
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FCA 2013/xx 6.1.8 G The pricing mod
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FCA 2013/xx 6.2.3 G Futures, forwar
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FCA 2013/xx 6.2.11 G This table bel
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FCA 2013/xx (b) (c) equal to a frac
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FCA 2013/xx demonstrate this by hav
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FCA 2013/xx shifts for both VaR and
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FCA 2013/xx individual basis if it
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FCA 2013/xx material practical or l
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FCA 2013/xx the financial situation
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FCA 2013/xx consolidated situation
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FCA 2013/xx applications against ar
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FCA 2013/xx Calculation of counterc
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FCA 2013/xx connection with common
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FCA 2013/xx “Qn” indicates the
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FCA 2013/xx [9.7 Exemptions 9.7.1 G
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FCA 2013/xx Permission 1 Internal R
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FCA 2013/xx consolidated basis for
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FCA 2013/xx 15 Own funds requiremen
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FCA 2013/xx 3.4 R For the purposes
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FCA 2013/xx (4) 40% for the period
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FCA 2013/xx (3) 0.6 during the peri
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FCA 2013/xx IFPRU 9.3 (Countercycli
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FCA 2013/xx 3.2.6R enter into a con
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FCA 2013/xx group members in excess
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FCA 2013/xx FCA to grant a waiver t
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FCA 2013/xx consolidated basis cons
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FCA 2013/xx that is not excluded un
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FCA 2013/xx third country countercy
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FCA 2013/xx purpose of BIPRU 10 (La
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FCA 2013/xx (ii) any private or pub
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FCA 2013/xx EEA prudential sectoral
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FCA 2013/xx financial instrument (1
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FCA 2013/xx (2) (in accordance with
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FCA 2013/xx basis under Article 73(
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FCA 2013/xx (3) (in BIPRU 12 (Liqui
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FCA 2013/xx 2.3 (Supervisory review
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FCA 2013/xx Annex C Amendments to t
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FCA 2013/xx CAPITAL REQUIREMENTS DI
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FCA 2013/xx (b) has a branch in the
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FCA 2013/xx 1.3 Valuation … … P
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FCA 2013/xx … Calculation of the
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FCA 2013/xx The table in GENPRU 2.1
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FCA 2013/xx ... … 2.2.220R; GENPR
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FCA 2013/xx … Limits on the use o
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This document has no legal effect a
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GENERAL GUIDANCE ON PROPORTIONALITY
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PART A: INTRODUCTION & INTERPRETATI
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Table 1: Defined expression group G
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proportionality rule. Part-year Rem
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(d) The rule on guaranteed variable
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APPENDIX 1: PILLAR 3 DISCLOSURE REQ
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CP13/6 - CRD IV for Investment Firms - Financial Conduct Authority

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